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<SEC-DOCUMENT>0000950123-09-060284.txt : 20091109
<SEC-HEADER>0000950123-09-060284.hdr.sgml : 20091109
<ACCEPTANCE-DATETIME>20091109170704
ACCESSION NUMBER:		0000950123-09-060284
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20091103
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20091109
DATE AS OF CHANGE:		20091109

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CLEARONE COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000840715
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				870398877
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33660
		FILM NUMBER:		091169307

	BUSINESS ADDRESS:	
		STREET 1:		5225 WILEY POST WAY
		STREET 2:		SUITE 500
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84116
		BUSINESS PHONE:		8019757200

	MAIL ADDRESS:	
		STREET 1:		5225 WILEY POST WAY
		STREET 2:		SUITE 500
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84116

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER COMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER ELECTRONICS CORP
		DATE OF NAME CHANGE:	19910808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>p16247e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>November&nbsp;3, 2009</B></DIV>

<DIV align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 0pt; width: 40%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
<B>Date of Report (Date of earliest event reported)</B></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CLEARONE COMMUNICATIONS, INC</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 0pt; width: 85%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>UTAH</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-33660</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>87-0398877</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other <BR>
Jurisdiction of Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>5225 WILEY POST WAY, SUITE 500<BR>
SALT LAKE CITY, UTAH 84116</B></DIV>

<DIV align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 0pt; width: 40%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
(Address of Principal Executive Offices) (Zip Code)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(801)&nbsp;975-7200</B></DIV>

<DIV align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 0pt; width: 45%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
(Registrant&#146;s Telephone Number, Including Area Code)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction
A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01. Entry into a Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003">Item&nbsp;9.01. Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="p16247exv2w2.htm">EX-2.2</A></TD></TR>
<TR><TD colspan="9"><A HREF="p16247exv10w23.htm">EX-10.23</A></TD></TR>
<TR><TD colspan="9"><A HREF="p16247exv10w24.htm">EX-10.24</A></TD></TR>
<TR><TD colspan="9"><A HREF="p16247exv99w1.htm">EX-99.1</A></TD></TR>
</TABLE>
</CENTER>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "Item&nbsp;1.01. Entry into a Material Definitive Agreement." -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Agreement and Plan of Merger</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby incorporate the discussion contained in Item&nbsp;2.01 of this Form 8-K regarding the
terms and conditions of the Agreement and Plan of Merger (the &#147;Merger Agreement&#148;) we entered into
to acquire all of the outstanding capital stock (including common, preferred, share warrants, and
outstanding options) of NetStreams, Inc. (&#147;NetStreams&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Joinder to Loan and Security Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described in Item&nbsp;2.03, on November&nbsp;3, 2009, in connection with the closing of the
NetStreams acquisition, we entered into a joinder agreement with Square 1 Bank (the &#147;Bank&#148;),
joining us as a party to that certain Loan and Security Agreement (&#147;Loan and Security Agreement&#148;),
dated November&nbsp;12, 2008, as amended, by and between the Bank, and NetStreams and NetStreams, LLC
(collectively, &#147;Borrower&#148;). The disclosure provided in Item&nbsp;2.03 of this Form 8-K is hereby
incorporated by reference into this Item&nbsp;1.01.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Amendment to Loan and Security Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described in Item&nbsp;2.03, on November&nbsp;3, 2009, in connection with the closing of the
NetStreams acquisition, we entered into an amendment to the Loan and Security Agreement. The
disclosure provided in Item&nbsp;2.03 of this Form 8-K is hereby incorporated by reference into this
Item&nbsp;1.01.
</DIV>
<!-- link2 "Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;3, 2009, we entered into and closed the Merger Agreement with Alta-Wasatch
Acquisition Corporation (&#147;Alta-Wasatch&#148;), our wholly owned subsidiary; NetStreams; and the
following parties that each entered into the Merger Agreement for purposes set forth in the Merger
Agreement, Austin Ventures VIII, L.P. and Kevin A. Reinis. Pursuant to the Merger Agreement,
Alta-Wasatch, will merge with and into NetStreams (the &#147;Merger&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate consideration paid by us pursuant to the Merger Agreement was (a) $1,950,000,
subject to adjustment, less certain defined transaction expenses, which was due in full in cash on
the closing date, (b)&nbsp;an earn-out payment, subject to certain defined thresholds, of up to
$3,000,000, covering a period of two years commencing on the closing date, and (c)&nbsp;the assumption
of a liability of NetStreams in the amount of $2,000,000. The aggregate consideration is subject
to a working capital adjustment based on a defined target, which is the value of certain assets
less certain liabilities set forth in the agreement. A portion of the consideration will be held
in escrow for 12&nbsp;months to satisfy the covenants as specified in the Merger Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement also contains other provisions, covenants, representations, and
warranties made by NetStreams and by us that are typical in transactions of this size, type, and
complexity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement is attached hereto as Exhibit&nbsp;2.2 and is hereby incorporated by reference
in this Item&nbsp;2.01. The foregoing description of the agreement and the transactions
contemplated thereby is qualified in its entirety by reference to the full text of the Merger
Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;3, 2009, we issued a press release announcing the entry into and closing of the
transactions pursuant to the Merger Agreement. A copy of this press release is attached hereto as
Exhibit&nbsp;99.1 and is hereby incorporated by reference in this Item&nbsp;2.01.
</DIV>
<!-- link2 "Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant." -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the closing of the Merger described in Item&nbsp;2.01, on November&nbsp;3, 2009, we
entered into the Joinder to the Loan and Security Agreement (the &#147;Joinder&#148;) and the Seventh
Amendment to the Loan and Security Agreement (the &#147;Seventh Amendment&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Joinder, we entered into the Loan and Security Agreement as a co-borrower and
assumed certain obligations under the Loan and Security Agreement. We were not required to pledge
additional security interests to the Bank. The existing collateral arrangement with respect to
Borrowers&#146; assets continues to secure the obligations of the parties under the Loan and Security
Agreement. In connection therewith, NetSteams entered into the Seventh Amendment which obligates us
to the Loan and Security Agreement in the amount of $2,000,000 and payment of Interest (as defined
in the Loan and Security Agreement) under the Formula Revolving Line (as defined in the Loan and
Security Agreement) shall be due and payable on the first calendar day of each month during the
term of the Loan and Security Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing descriptions of the Joinder and Seventh Amendment are only summaries and are
qualified in their entirety by reference to the full text of the Joinder and Seventh Amendment,
which are attached hereto as Exhibit&nbsp;10.23 and Exhibit&nbsp;10.24, respectively, and are hereby
incorporated by reference into this Item&nbsp;2.03.
</DIV>
<!-- link2 "Item&nbsp;9.01. Financial Statements and Exhibits." -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Financial Statements of Businesses Acquired</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements of NetStreams are not being furnished in this Form 8-K. In accordance
with subsection 4 of this Item&nbsp;9.01(a), the financial statements of NetStreams will be filed by
amendment to this Form 8-K as soon as practicable, but not later than 71&nbsp;days after the date on
which this Form 8-K was required to be filed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Pro Forma Financial Information</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma financial information of NetStreams and our company is not being furnished in
this Form 8-K. In accordance with subsection 2 of this Item&nbsp;9.01(b), the pro forma financial
information of NetStreams and our company will be filed by amendment to this Form 8-K as soon as
practicable, but not later than 71&nbsp;days after the date on which this Form 8-K was required to be
filed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <I>Shell Company Transactions</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <I>Exhibits</I>.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agreement and Plan of Merger, dated as of November&nbsp;3, 2009, by
and among ClearOne Communications, Inc., Alta-Wasatch Acquisition Corporation,
NetStreams, Inc., Austin Ventures VIII, L.P., and Kevin A. Reinis.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.23</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joinder to Loan and Security Agreement, dated as of November
3, 2009, by and between ClearOne Communications, Inc. and Square 1 Bank.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Seventh Amendment to Loan and Security Agreement, dated as of
November&nbsp;3, 2009, by and between Square 1 Bank, ClearOne Communications, Inc.,
NetStreams, Inc., and NetStreams, LLC.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Press Release from ClearOne Communications, Inc., dated
November&nbsp;3, 2009, titled &#147;ClearOne Acquires NetStreams &#151; NetStreams Brings
ClearOne Audio and Video IP-based Network Solutions&#148;</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">Date:  November 9, 2009&nbsp;</TD>
    <TD colspan="3" align="left">CLEARONE COMMUNICATIONS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Zeynep Hakimoglu
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Zeynep Hakimoglu&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President, Chief Executive Officer, and Chairman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agreement and Plan of Merger, dated as of November&nbsp;3, 2009, by and among ClearOne
Communications, Inc., Alta-Wasatch Acquisition Corporation, NetStreams, Inc., Austin Ventures
VIII, L.P., and Kevin A. Reinis.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.23</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joinder to Loan and Security Agreement, dated as of November&nbsp;3, 2009, by and between
ClearOne Communications, Inc. and Square 1 Bank.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Seventh Amendment to Loan and Security Agreement, dated as of November&nbsp;3, 2009, by and
between Square 1 Bank, ClearOne Communications, Inc., NetStreams, Inc., and NetStreams, LLC.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Press Release from ClearOne Communications, Inc., dated November&nbsp;3, 2009, titled &#147;ClearOne
Acquires NetStreams &#151; NetStreams Brings ClearOne Audio and Video IP-based Network Solutions&#148;</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.2
<SEQUENCE>2
<FILENAME>p16247exv2w2.htm
<DESCRIPTION>EX-2.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;2.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT AND PLAN OF MERGER</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>among</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ClearOne Communications, Inc.,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Alta-Wasatch Acquisition Corporation,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NetStreams, Inc.,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Austin Ventures VIII, L.P.,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>and the</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Incentive Plan Representative<BR>
(as identified herein)</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Dated as of November&nbsp;3, 2009</B>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE I
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">DEFINITIONS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">1</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">1.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Definitions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">1</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE II
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">THE MERGER
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">12</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Merger Consideration; Conversion of the Shares; Earnout
Consideration
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">12</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Company Options
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">19</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Escrow
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">19</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.04
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Closing Adjustment
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">19</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.05
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Effects of the Merger
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">23</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.06
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Tax Consequences and Withholding
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">24</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.07
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Further Assurances
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">24</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.08
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Dissenting Shares
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">25</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.09
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Austin Ventures VIII, L.P. Convertible Notes
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">25</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Transaction Fees
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">25</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">2.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Incentive Plan Representative
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">25</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE III
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">REPRESENTATIONS AND WARRANTIES OF THE COMPANY
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">26</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Organization and Qualification
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">26</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Certificate of Incorporation and Bylaws
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">28</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Capitalization
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">28</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.04
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Authority Relative to this Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">29</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.05
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">No Conflict; Required Filings and Consents
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">30</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.06
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Permits; Compliance
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">30</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.07
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">31</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.08
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Absence of Certain Changes or Events
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">32</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.09
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Absence of Litigation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">33</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Employee Benefit Plans
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">33</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Labor and Employment Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">37</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#091;Intentionally Deleted&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">39</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Absence of Real Property; Title to Assets
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">39</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Intellectual Property
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">40</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Taxes
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">42</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-i-<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B><BR>
(continued)

</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Environmental Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">43</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.17
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">No Rights Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">44</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.18
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Material Contracts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">44</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.19
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Customers and Suppliers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">46</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.20
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Inventory
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">46</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.21
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Company Products and Services
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">46</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.22
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Insurance
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.23
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Certain Business Practices
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.24
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Full Disclosure
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.25
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Brokers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.26
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Merger Consideration Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">3.27
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Director and Officer Indemnification
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE IV
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">48</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">4.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Corporate Organization
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">48</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">4.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Authority Relative to This Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">48</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">4.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">No Conflict; Required Filings and Consents
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">48</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">4.04
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Brokers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">49</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE V
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">ADDITIONAL AGREEMENTS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">49</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Stockholders&#146; Meeting or Written Consent and Approval of
the Company Stockholder
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">49</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notification of Certain Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">49</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Further Action; Reasonable Best Efforts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">50</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.04
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Public Announcements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">50</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.05
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">FIRPTA
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">50</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.06
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#091;Intentionally Deleted&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">50</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.07
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Certain Tax Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">50</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.08
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Directors&#146; and Officers&#146; Indemnification
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">51</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.09
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Conduct of Business
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">52</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Conversion of Austin Ventures VIII, L.P. Convertible
Promissory Notes
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">54</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">5.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Dissolution of NetStreams International, Inc .
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">54</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-ii-<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B><BR>
(continued)

</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE VI
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">CONDITIONS TO THE MERGER
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">54</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">6.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Conditions to the Merger
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">54</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE VII
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">CLOSING MATTERS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">59</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">7.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The Closing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">59</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">7.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Exchange
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">59</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">7.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Dissenting Shares
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">60</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE VIII
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">TERMINATION, AMENDMENT AND WAIVER, SURVIVAL OF
REPRESENTATIONS, INDEMNIFICATION AND REMEDIES, AND
CONTINUING COVENANTS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">61</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Termination by Mutual Consent
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">61</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Unilateral Termination
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">61</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Effect of Termination
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">61</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.04
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Amendment
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">61</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.05
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Waiver
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">62</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.06
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Survival
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">62</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.07
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Agreement of Company Stockholder to Indemnify Parent
Indemnified Parties
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">62</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.08
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Agreement of Parent to Indemnify Company Indemnified Parties
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">63</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.09
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Limitations
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">63</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notice of Claim; Claims Period
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">64</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Defense of Third Party Claims
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">65</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#091;Intentionally Deleted&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">65</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Resolution of Notice of Claim
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">65</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Release of Remaining Escrow Cash
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">66</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Computation of Damages
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">67</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">8.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Tax Consequences of Working Capital Adjustment,
Indemnification Payments and Earnout Payments
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">67</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ARTICLE IX
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">GENERAL PROVISIONS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">67</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notices
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">67</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.02
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Severability
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">69</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.03
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Entire Agreement; Assignment
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">69</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-iii-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B><BR>
(continued)

</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.04
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Parties in Interest
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">69</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.05
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Specific Performance
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">70</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.06
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Governing Law and Consent to Jurisdiction
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">70</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.07
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Waiver of Jury Trial
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">70</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.08
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Headings
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">70</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">9.09
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Counterparts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">71</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This AGREEMENT AND PLAN OF MERGER is made and entered into as of November&nbsp;3, 2009 (this
&#147;<U>Agreement</U>&#148;), among ClearOne Communications, Inc., a Utah corporation (&#147;<U>Parent</U>&#148;),
Alta-Wasatch Acquisition Corporation, a Delaware corporation and a wholly-owned Subsidiary of
Parent (&#147;<U>Merger Sub</U>&#148;), NetStreams, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;),
and the following parties that are each entering into this Agreement for the limited purposes set
forth in Sections&nbsp;2.01(g), 2.03, 2.11, 6.01(a)(v) and 6.01(b)(ix) and Articles VIII and IX: Austin
Ventures VIII, L.P. (&#147;<U>Company Stockholder</U>&#148;) a Delaware limited partnership, and Kevin A.
Reinis (&#147;<U>Incentive Plan Representative</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The parties intend that, subject to the terms and conditions hereinafter set forth, Merger
Sub shall merge with and into the Company (the &#147;<U>Merger</U>&#148;), with the Company to be the
surviving corporation of the Merger (the &#147;<U>Surviving Corporation</U>&#148;), on the terms and subject
to the conditions of this Agreement and pursuant to the General Corporation Law of the State of
Delaware (the &#147;<U>DGCL</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;The Board of Directors of each of Parent and Merger Sub has determined that the Merger is
in the best interests of their respective companies. The Board of Directors of the Company (the
&#147;<U>Board</U>&#148;) has determined that the Merger is in the best interests of the Company, and,
subject to the terms and conditions of this Agreement, to recommend the approval of this Agreement
and the Merger to the Company&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;Parent, Merger Sub and the Company desire to make certain representations, warranties,
covenants and agreements in connection with the Merger and to prescribe various conditions to the
Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
herein contained, and intending to be legally bound hereby, Parent, Merger Sub and the Company
hereby agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE I</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">DEFINITIONS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01 <U>Definitions.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of this Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Action</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.09.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>affiliate</U>&#148; of a specified person means a person who, directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under common control with, such
specified person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aggregate Merger Consideration</U>&#148; means (A)&nbsp;One Million Nine Hundred and Fifty Thousand
Dollars ($1,950,000) (as may be adjusted by the Closing Adjustment), minus (B)&nbsp;Transaction
Expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; has the meaning ascribed thereto in the Preamble.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Arbitrating Accountant</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(v)(B).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Austin Ventures VIII, L.P. Convertible Notes</U>&#148; means the convertible promissory notes
in the aggregate principal amount of $3,500,000 issued by the Company to Austin Ventures VIII, L.P.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>AV VIII Holdings, Inc. Convertible Promissory Note</U>&#148; means the convertible promissory
note in the principal amount of $250,000 issued by the Company to AV VIII Holdings, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Basket</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.09(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Board</U>&#148; has the meaning ascribed thereto in the Recitals.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bundled Earnout Products</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(ix).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>business day</U>&#148; means any day on which the principal offices of the SEC in Washington,
D.C. are open to accept filings, or, in the case of determining a date when any payment is due, any
day (other than a Saturday or Sunday) on which banks are not required or authorized to close in the
City of Salt Lake City, Utah.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Bylaws&#148; has the meaning ascribed thereto in Section&nbsp;3.02.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Certificate of Incorporation&#148; has the meaning ascribed thereto in Section&nbsp;3.02.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Certificate of Merger&#148; has the meaning ascribed thereto in Section&nbsp;2.05(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Charter Documents&#148; has the meaning ascribed thereto in Section&nbsp;3.02.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Claim</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.10(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Claims Period</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.10(d).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing</U>&#148; has the meaning ascribed thereto in Section&nbsp;7.01.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Adjustment</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Cash Consideration</U>&#148; means (A)&nbsp;One Million Nine Hundred and Fifty Thousand
Dollars ($1,950,000), adjusted upwards or downwards by the Closing Adjustment, minus (B)&nbsp;the sum of
(1)&nbsp;the Transactions Expenses and (2)&nbsp;the Escrow Cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Date</U>&#148; has the meaning ascribed thereto in Section&nbsp;7.01.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Working Capital Statement</U>&#148; has the meaning ascribed thereto in Section
2.04(b)(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>COBRA</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.10(o).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.10(a).
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Merger Consideration</U>&#148; means a dollar amount, if any, equal to (A)&nbsp;the Post
Preference Merger Consideration less (B)&nbsp;the Series&nbsp;A Merger Consideration, divided by (C)&nbsp;the
number of issued and outstanding shares of Company Common Stock, which dollar amount is $0, as set
forth in the Merger Consideration Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company</U>&#148; has the meaning ascribed to such term in the introductory paragraph of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Capital Stock</U>&#148; means the Company Common Stock, the Company Preferred Stock,
the Company Options, and any other rights to acquire capital stock of the Company from the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Common Stock</U>&#148; means the common stock, par value $0.001 per share, of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Financial Statements</U>&#148; means the audited consolidated financial statements of
the Company and its Subsidiaries for the fiscal years ended March&nbsp;31, 2009 and March&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Indemnified Officers and Directors</U>&#148; has the meaning ascribed thereto in
Section&nbsp;5.08(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Indemnified Persons</U>&#148; means the Company, the Company Stockholder and the
Incentive Plan Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company IT Systems</U>&#148; means all IT Systems used in or held for use in connection with
the business of the Company and its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Management Incentive Plan</U>&#148; means the management incentive plan adopted by the
Board on May&nbsp;13, 2009, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Non-Participating Preferred Stock</U>&#148; means the Company&#146;s Series&nbsp;A Convertible
Preferred Stock, Series&nbsp;A-1 Convertible Preferred Stock, Series&nbsp;A-2 Convertible Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Non-Participating Stock</U>&#148; means the Company Common Stock and the Company
Non-Participating Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Option Plan</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.03(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Optionholder</U>&#148; means a holder of Company Options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Options</U>&#148; means all options and warrants to purchase or otherwise acquire
shares of capital stock (or options, warrants or other rights to purchase or otherwise acquire
shares of capital stock) of the Company from the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Preferred Stock</U>&#148; means the Company Non-Participating Preferred Stock and the
Company Series&nbsp;B Stock.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Revenue</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(vi).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Securityholders</U>&#148; means the Company Stockholder and the Company Optionholders
collectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Series&nbsp;B Stock</U>&#148; means the Series&nbsp;B Redeemable Preferred Stock, par value
$0.001 per share, of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Stockholder</U>&#148; has the meaning ascribed to such term in the introductory
paragraph of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Securityholder Approval</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.04.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Unaudited Financial Statements</U>&#148; means the unaudited consolidated financial
statements of the Company and its Subsidiaries for the fiscal period commencing April&nbsp;1, 2009 and
ended September&nbsp;30, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Warrants</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.03(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Confidential Information</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.14(g).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contested Claim</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.13(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contamination</U>&#148; or &#147;<U>Contaminated</U>&#148; means the presence (actual or reasonably
suspected) of Hazardous Substances in, on or under the soil, groundwater, surface water or other
environmental media or any structure or improvement, if any investigatory, remedial, removal
reporting or other response action is required or legally could be required by a governmental
authority under any Environmental Law with respect to such presence or suspected presence of
Hazardous Substances, or if such response action otherwise is reasonable or appropriate under the
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>control</U>&#148; (including the terms &#147;<U>controlled by</U>&#148; and &#147;<U>under &#147;common control
with</U>&#148;) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through the ownership of voting
securities or by contract or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Current Assets</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Current Liabilities</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Damages</U>&#148; means any and all losses, costs, damages, Liabilities and expenses
(including reasonable attorneys&#146; fees, other professionals&#146; and experts&#146; fees, costs of
investigation and court costs, but excluding incidental, special, consequential and punitive
damages, other than any incidental, special, consequential and punitive damages payable by any
Parent Indemnified Person to a third party), actually incurred and calculated net of actual
recoveries under existing insurance policies (net of any applicable collection costs and reserves,
deductibles, premium adjustments and retrospectively rated premiums) and net of actual recoveries
received by a Parent Indemnified Person from a third party.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>De Minimis Threshold</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.09(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>DGCL</U>&#148; has the meaning ascribed thereto in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disclosure Schedule</U>&#148; has the meaning ascribed thereto in the introductory paragraph
of Article&nbsp;III.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disputed Amounts</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(c)(iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dissenting Shares</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.08(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dissenting Shares Excess Payments</U>&#148; means (a)&nbsp;any payment in respect of Dissenting
Shares in excess of the amount of cash that would have been issuable pursuant to Section&nbsp;2.01(d) in
respect of such shares or interests had they never been Dissenting Shares, and (b)&nbsp;any expenses,
including attorneys&#146; fees, incurred by Parent or the Surviving Corporation in connection with
negotiating and preparing any such payment, as contemplated by Section&nbsp;2.08. Dissenting Shares
Excess Payments shall constitute &#147;Damages&#148; for purposes of <U>Article&nbsp;VIII</U> without regard to
the Basket.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Consideration</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Participants</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Payment Amount</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iv)(B).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Period</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Products</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(vii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Ruling</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(v)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnout Threshold</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Time</U>&#148; means the time of the filing of the Certificate of Merger (or such
later time as may be mutually agreed in writing by the Company and Parent and specified in the
Certificate of Merger).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148; means any United States federal, state, local or non United
States laws, statutes, ordinances, regulations, rules, codes, orders, other requirements of law and
common law relating to (i)&nbsp;releases or threatened releases of Hazardous Substances or materials
containing Hazardous Substances; (ii)&nbsp;exposure or alleged exposure to Hazardous Substances; (iii)
the manufacture, handling, transport, recycling, reclamation, use, treatment, storage or disposal
of Hazardous Substances or materials containing Hazardous Substances; or (iv)&nbsp;pollution, natural
resource damages or protection of the environment, health or safety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Permits</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.16.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.10(a).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Affiliate</U>&#148; means any trade or business (whether or not incorporated) under
common control with the Company and which, together with the Company, is treated as a single
employer within the meaning of Section&nbsp;414(b), (c), (m)&nbsp;or (o)&nbsp;of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Agent</U>&#148; means U.S. Bank National Association or such other financial
institution as is reasonably acceptable to Parent and the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Agreement</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.03.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Amount</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.03.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Cash</U>&#148; means an amount of cash equal to Three Hundred and Fifty-Thousand
Dollars ($350,000).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Percentages</U>&#148; means, in the case of the Company Stockholder, eighty-five
percent (85%), and in the case of the Incentive Plan Participants, those percentages set out
opposite the names of the Incentive Plan Participants in the Merger Consideration Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Estimated Closing Working Capital</U>&#148; has the meaning ascribed thereto in Section
2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Estimated Closing Working Capital Statement</U>&#148; has the meaning ascribed thereto in
Section&nbsp;2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Act</U>&#148; means the Securities and Exchange Act of 1934, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.07(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP Exceptions</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.05(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Substances</U>&#148; means (i)&nbsp;those substances defined in or regulated under the
following United States federal statutes and their state and local counterparts, as each may be
amended from time to time, and all regulations thereunder: the Hazardous Materials Transportation
Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response,
Compensation and Liability Act, the Clean Water Act, the Safe Drinking Water Act, the Atomic Energy
Act, the Federal Insecticide, Fungicide, and Rodenticide Act and the Clean Air Act; (ii)&nbsp;petroleum
and petroleum products, including crude oil and any fractions thereof; (iii)&nbsp;natural gas, synthetic
gas, and any mixtures thereof; and (iv)&nbsp;polychlorinated biphenyls, asbestos, mold and radon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incentive Plan Participants</U>&#148; means those persons identified, in the Merger
Consideration Certificate, as constituting the participants in the Company Management Incentive
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incentive Plan Representative</U>&#148; has the meaning ascribed thereto in the Preamble.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148; means, with respect to the Company: (a)&nbsp;indebtedness created, issued or
incurred for borrowed money (whether by loan or the issuance and sale of securities), including
without limitation, any interest, prepayment penalties, expenses or fees accruing thereon payable
with respect thereto; (b)&nbsp;indebtedness of others guaranteed by the Company; and (c)&nbsp;any amounts
payable to the Company Shareholder; provided, however, Indebtedness shall not include obligations
of the Company for capitalized leases and for accrued current liabilities incurred prior to Closing
in the Ordinary Course of Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Party</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.10(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnifying Party</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.10(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Person</U>&#148; means the Parent, acting on its own behalf or on behalf of
another Parent Indemnified Person, or the Company Indemnified Persons, as the context requires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Independent Accountants</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(c)(iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Integrated Earnout Products</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(vii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property</U>&#148; means, collectively, all of the following worldwide legal
rights, whether or not filed, perfected, registered or recorded, that may exist under the laws of
any jurisdiction to and under all: (i)&nbsp;patents, patent applications, statutory invention
registrations, patent rights, including all continuations, continuations-in-part, divisions,
reissues, reexaminations or extensions thereof, whether now existing or hereafter filed, issues or
acquired, and all inventions, whether or not patentable, (ii)&nbsp;trademarks, service marks, domain
names, (including, but not limited to Internet domain names, Internet and World Wide Web URLs, and
domain name registrations and pending applications therefor) trade dress, logos, trade names,
corporate names, and other identifiers of source or goodwill, including registrations and
applications for registration thereof, (iii)&nbsp;rights associated with works of authorship (including
audiovisual works) including mask works and copyrights, including copyrights in Software, and
registrations and applications for registration thereof, and (iv)&nbsp;rights relating to the protection
of trade secrets, know-how, invention rights, and other confidential or proprietary technical,
business and other information, including manufacturing and production processes and techniques,
research and development information, technology, drawings, specifications, designs, plans,
proposals, technical data, financial, marketing and business data, pricing and cost information,
business and marketing plans, customer and supplier lists and information, and all rights in any
jurisdiction to limit the use or disclosure thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IRS</U>&#148; means the United States Internal Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IT Systems</U>&#148; means computer systems, programs, networks, hardware, Software,
databases, operating systems, Internet websites, website content and links and equipment used to
process, store, maintain and operate data, information and functions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>knowledge of the Company</U>&#148; or the &#147;<U>Company&#146;s knowledge</U>&#148; means the actual
knowledge of Kevin Reinis, Peter Radekevich, Michael Braithwaite or Doug Parse.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Law</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.05(a).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lease Documents</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.13(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liability</U>&#148; or &#147;<U>Liabilities</U>&#148; means any debt, liability and obligation, whether
accrued or fixed, absolute or contingent, matured or unmatured, determined or determinable, known
or unknown, including those arising under any law, action or government order and those arising
under any contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Licensed Intellectual Property</U>&#148; means Intellectual Property licensed to the Company
or any of its Subsidiaries pursuant to the Licenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Licenses</U>&#148; means all licenses, sublicenses and other contracts pursuant to which the
Company or any of its Subsidiaries acquired or is authorized to use or exercise any third party
Intellectual Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Effect</U>&#148; means, when used in connection with the Company, any event,
circumstance, change or effect that, individually or in the aggregate with any other events,
circumstances, changes and effects occurring after the date hereof, is or would reasonably be
expected to be materially adverse to (i)&nbsp;the business, condition (financial or otherwise), assets,
liabilities or results of operations of the Company and its Subsidiaries taken as a whole, (ii)&nbsp;the
ability of the Company to consummate the Merger, except to the extent that such effect is caused
by, or results from changes in general economic conditions or changes affecting the industry in
which the Company operates generally (provided that such changes do not affect the Company and its
Subsidiaries in a substantially disproportionate manner), (3)&nbsp;the taking of any action required by
this Agreement; and (4)&nbsp;any breach of this Agreement by the Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Contracts</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.18(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Merger</U>&#148; has the meaning ascribed thereto in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Merger Consideration</U>&#148; means the aggregate of the dollar amounts specified in (A)&nbsp;in
Section&nbsp;2.01(b) with respect to the AV VIII Holdings, Inc. Convertible Promissory Note, (B)&nbsp;Section
2.01(c) with respect to the Company Management Incentive Plan, and (C)&nbsp;subparagraphs (i) (which,
for clarity, is $0) and (ii)&nbsp;of Section&nbsp;2.01(d), with respect to the Company Non-Participating
Preferred Stock and the Company Series&nbsp;B Stock, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Merger Consideration Certificate</U>&#148; has the meaning ascribed thereto in Section
2.01(d)(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Merger Sub</U>&#148; has the meaning ascribed thereto in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Merger Sub Common Stock</U>&#148; means the Common Stock, par value $0.001 per share, of
Merger Sub.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Note Payoff Amount</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notice of Claim</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.10(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notification Deadline</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iv)(C).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Objection Deadline Date</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(v).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>One-Year Anniversary Date</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ordinary Course of Business</U>&#148; means the ordinary course of business of the Company or
its Subsidiaries, conducted in accordance with past practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Owned Intellectual Property</U>&#148; means any Intellectual Property that is owned or
purportedly owned by the Company or any of its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148; has the meaning ascribed thereto in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent Indemnified Person</U>&#148; means the Parent and its officers, directors, agents,
affiliates, representatives, stockholders and employees, and each person, if any, who controls or
may control Parent within the meaning of the Securities Act (such persons being referred to
collectively as &#147;<U>Parent Indemnified Persons</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent Objection Procedure</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D)(1).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Payable Post-Closing Adjustment</U>&#148; has the meaning ascribed thereto in Section
2.04(b)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Payable Post-Closing Adjustment Determination</U>&#148; has the meaning ascribed thereto in
Section&nbsp;2.03(c)(v).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>person</U>&#148; means an individual, corporation, partnership, limited partnership, limited
liability company, syndicate, trust, association or entity or government, political subdivision,
agency or instrumentality of a government.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permits</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.06(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Piper Jaffray</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.03.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Piper Jaffray Agreement</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.03.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Plans</U>&#148; has the meaning ascribed thereto in Section&nbsp;3.10(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Post-Closing Adjustment</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Post-Closing Adjustment Threshold</U>&#148; has the meaning ascribed thereto in Section
2.04(b)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Post Preference Merger Consideration</U>&#148; means the positive difference of (i)&nbsp;the
Aggregate Merger Consideration over (ii)&nbsp;the aggregate amount to be paid to the holders of Company
Series&nbsp;B Stock pursuant to Section&nbsp;2.01(d)(ii), which dollar amount is $0, as set forth in the
Merger Consideration Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Priority Claims</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iv)(D).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registered Intellectual Property</U>&#148; means any Owned Intellectual Property subject of an
application, certificate, filing, registration or other document issued, filed with, or recorded by
any governmental bodies in the United States or applicable foreign jurisdictions, including, but
not limited to, any United States, international and foreign: (A)&nbsp;patents and patent applications
(including provisional applications); (B)&nbsp;registered trademarks, applications to register
trademarks, intent-to-use applications, or other registrations or applications related to
trademarks; (C)&nbsp;registered Internet domain names; and (D)&nbsp;registered copyrights and applications
for copyright registration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Resolution Period</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(c)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Review Period</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(c)(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>SEC</U>&#148; means the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148; means the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Series&nbsp;A Merger Consideration</U>&#148; means a dollar amount equal to the Post Preference
Merger Consideration divided by the number of issued and outstanding shares of Company
Non-Participating Preferred Stock, which dollar amount is $0, as set forth in the Merger
Consideration Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shrink Wrap Software</U>&#148; means licenses of generally commercially available
off-the-shelf Software licensed pursuant to un-negotiated end-user license or subscription
agreements, shrink-wrap, click-wrap licenses or other similar licenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Software</U>&#148; means computer software, programs and databases in any form, including
Internet web sites, web content and links, all versions, updates, corrections, enhancements, and
modifications thereof, and all related documentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Special Representations</U>&#148; means the representations set forth in Section&nbsp;3.03
(Capitalization) and 3.04 (Authority Relative to this Agreement), and any representations contained
in the Merger Consideration Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Square 1 Loan</U>&#148; means the Indebtedness of the Company to Square 1 Bank pursuant to
that certain Loan and Security Agreement between Square 1 Bank and the Company dated November&nbsp;12,
2008, as amended from time to time (the &#147;<U>Square 1 Bank Loan Agreement</U>&#148;), but excluding
(notwithstanding the definition of &#147;Indebtedness&#148; herein) any &#147;Success Fee&#148; payable by the Company
to Square 1 Bank upon completion of the Merger pursuant to the terms of the Square 1 Bank Loan
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Statement of Objections</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(c)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Stockholder Consent</U>&#148; has the meaning ascribed thereto in Section&nbsp;5.01(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Stockholders&#146; Meeting</U>&#148; has the meaning ascribed thereto in Section&nbsp;5.01(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Surviving Corporation</U>&#148; has the meaning ascribed thereto in the Recitals.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148; or &#147;<U>Subsidiaries</U>&#148; of the Company, the Surviving Corporation,
Parent, as applicable, or any other person, means an affiliate entity controlled by such person,
directly or indirectly through one or more intermediaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target Working Capital</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Claim</U>&#148; has the meaning ascribed thereto in Section&nbsp;5.07(a)(iv).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; shall mean (i)&nbsp;any and all taxes, fees, levies, duties, tariffs, imposts and
other similar charges of any kind (together with any and all interest, penalties, additions to tax
and additional amounts imposed with respect thereto) imposed by any Governmental Authority or
taxing authority, including, without limitation: taxes or other charges on or with respect to
income, franchise, windfall or other profits, gross receipts, property, sales, use, capital stock,
payroll, employment, social security, workers&#146; compensation, unemployment compensation or net
worth; taxes or other charges in the nature of excise, withholding, ad valorem, stamp, transfer,
value-added or gains taxes; license, registration and documentation fees; and customers&#146; duties,
tariffs and similar charges, and (ii)&nbsp;any Liability for the payment of any amounts of the type
described in clause (i)&nbsp;of this sentence as a result of being a member of an affiliated,
consolidated, combined, unitary or aggregate group for any Taxable period, and (iii)&nbsp;any Liability
for the payment of any amounts of the type described in clause (i)&nbsp;or (ii)&nbsp;above as a result of
being a transferee of or successor to any Person or as a result of any express or implied
obligation to assume such Taxes or to indemnify any other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Return</U>&#148; means any return, report, schedule, declaration, estimate or election
(including attachments to any of the foregoing) filed or required to be filed with any Governmental
Authority with respect to Taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Third-Party Claim</U>&#148; has the meaning ascribed thereto in Section&nbsp;8.10(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transaction Expenses</U>&#148; means all third party fees and expenses incurred by the Company
in connection with the Merger and this Agreement and the transactions contemplated hereby as listed
on Schedule&nbsp;7.02(d), as such Schedule may be updated at Closing by written agreement among the
Parent, the Company Stockholder and the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Undisputed Amounts</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.04(c)(iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Unilateral Written Direction</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Unresolved Objections</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(v)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Working Capital Adjustment</U>&#148; means the Closing Adjustment, as such amount may be
adjusted by the Post-Closing Adjustment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 1 Balance</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 1 Earnout</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iii).
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 1 Earnout Excess Payment</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2 Earnout</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2(A) Balance</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2(A) Earnout Excess Payment</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2(A) Priority Claims</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2(B) Balance</U>&#148; has the meaning ascribed thereto in Section&nbsp;2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2(B) Earnout Excess Payment</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Year 2(B) Priority Claims</U>&#148; has the meaning ascribed thereto in Section
2.01(g)(iv)(D).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE II</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">THE MERGER

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01 <U>Merger Consideration; Conversion of the Shares; Earnout Consideration.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Conversion of Merger Sub Common Stock</U>. At the Effective Time, each share of Merger
Sub Common Stock that is issued and outstanding immediately prior to the Effective Time shall be
converted into one validly issued, fully paid and nonassessable share of Common Stock, par value
$0.001 per share, of the Surviving Corporation, and the shares of the Surviving Corporation into
which the shares of Merger Sub Common Stock are so converted shall be the only shares of Company
Capital Stock that are issued and outstanding immediately after the Effective Time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>AV VIII Holdings, Inc. Convertible Promissory Note</U>. At the Effective Time,
$250,000 plus interest accrued through the Effective Time (such amount, the &#147;<U>Note Payoff
Amount</U>&#148;) of the Closing Cash Consideration shall be payable to AV VIII Holdings, Inc. as
payment in full of the AV VIII Holdings, Inc. Convertible Promissory Note.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Company Management Incentive Plan</U>. At the Effective Time, 15% of (1)&nbsp;the Closing
Cash Consideration less (2)&nbsp;the Note Payoff Amount shall be payable to the Incentive Plan
Participants in accordance with the Merger Consideration Certificate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Conversion of Company Capital Stock</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Company Non-Participating Stock</U>. Pursuant to the provisions of the Merger
Consideration Certificate (as hereinafter defined), each share of Company Non-
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Participating Stock that is issued and outstanding immediately prior to the Effective Time is
entitled to receive an amount of cash, without interest, equal to either the Series&nbsp;A Merger
Consideration or the Common Merger Consideration, as applicable. However, since both of these
amounts will be nil ($0), each share of Company Non-Participating Stock will be, as at the
Effective Time, cancelled and extinguished, with no payment or distribution being made with respect
thereto. &#147;<U>Merger Consideration Certificate</U>&#148; means a certificate in the form attached
hereto as <U>Exhibit&nbsp;A</U>, to be prepared by the Company as of the Closing Date and signed by the
Secretary of the Company&#146;s Board of Directors and the Company&#146;s Chief Financial Officer and
delivered to the Parent at Closing, which certificate will represent and warrant to the Parent that
the Merger is treated as a liquidation, dissolution or winding up of the Company under the
Certificate of Incorporation and that the distribution provisions set forth in the Merger
Consideration Certificate with respect to the Merger Consideration are in accordance with the
provisions, including liquidation preferences, of the Certificate of Incorporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Company Series&nbsp;B Stock</U>. Pursuant to the provisions of the Merger Consideration
Certificate, at the Effective Time, each share of Company Series&nbsp;B Stock that is issued and
outstanding immediately prior to the Effective Time shall, by virtue of the Merger and without the
need for any further action on the part of the holder thereof (except as expressly provided
herein), be converted into and represent the right to receive an amount of cash, without interest,
equal to (A)&nbsp;85% of that amount which is equal to (1)&nbsp;the Closing Cash Consideration, less (2)&nbsp;the
Note Payoff Amount divided by (B)&nbsp;the number of then-outstanding shares of the Company&#146;s Series&nbsp;B
Stock, all as set forth in the Merger Consideration Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Dissenting Shares</U>. As more fully set forth in Section&nbsp;7.03, holders of shares of
Company Capital Stock who have complied with all requirements for perfecting dissenters&#146; rights, as
set forth in the DGCL, shall be entitled to their rights under the DGCL with respect to such
shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Cancellation of Certain Shares and Company Options</U>. Notwithstanding Section
2.01(d), (i)&nbsp;each share of Company Capital Stock held by the Company immediately prior to the
Effective Time, and (ii)&nbsp;each Company Option that is issued and outstanding immediately prior to
the Effective Time, shall in each case, by virtue of the Merger and without the need for any
further action on the part of the holder hereof (except as expressly provided herein), be cancelled
and extinguished without any conversion thereof or payment therefor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Earnout Consideration</U>. In accordance with the Merger Consideration Certificate,
the Company Stockholder and the Incentive Plan Participants shall together (as such, the
&#147;<U>Earnout Participants</U>&#148;) be entitled to the additional earnout amount set forth below as
determined by future Company Revenue (as defined below) for the Earnout Periods described below on
the following terms:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The earnout period shall consist of two years (each, an &#147;<U>Earnout Period</U>&#148;), the
first beginning on the day following the Closing Date and ending one year thereafter (the &#147;<U>One
Year Anniversary Date</U>&#148;), and the second beginning on the day following the One Year Anniversary
Date and ending one year thereafter.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Earnout Threshold</U>. The threshold amounts (each, an &#147;<U>Earnout Threshold</U>&#148;)
shall be $6,000,000 for the first Earnout Period and $9,000,000 for the second Earnout Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U>Earnout Consideration</U>. The earnout amount payable for each Earnout Period (in
the aggregate for both such Earnout Periods, the &#147;<U>Earnout Consideration</U>&#148;; such amount, with
respect to the first Earnout Period, &#147;<U>Year 1 Earnout</U>&#148;; such amount with respect to the
second Earnout Period, &#147;<U>Year 2 Earnout</U>&#148;) shall be calculated as follows: provided the
Earnout Threshold is achieved for a given Earnout Period, the Earnout Consideration for such
Earnout Period shall equal the product of (A)&nbsp;the Company Revenue during the Earnout Period,
multiplied by (B)&nbsp;seven percent (7.0%); <U>provided that</U> the maximum amount of aggregate
Earnout Consideration for the two Earnout Periods shall not exceed $3,000,000. The parties intend
that, for tax purposes, the payments (set forth in subsections (i)&nbsp;through (iii)&nbsp;above) shall
qualify for installment sale treatment under &#167;453 of the Code. Such payments shall be treated as
imputed interest to the extent required by the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U>Payments; Review of Books and Records</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;For any Earnout Consideration payments due to the Earnout Participants pursuant to clauses
(i), (ii)&nbsp;and (iii)&nbsp;of Section&nbsp;2.01(g), Parent shall pay, in accordance with this Section
2.01(g)(iv), the applicable Earnout Consideration amount to the Escrow Agent, to be dealt with in
accordance with the terms and conditions of the Escrow Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;Parent shall deliver, by the Notification Deadline (as hereinafter defined), to each of
the Company Stockholder and the Incentive Plan Representative a certificate of the Chief Financial
Officer, Treasurer or Controller of Parent certifying on behalf of Parent the amount of Company
Revenue for the applicable Earnout Period and the amount of any Earnout Consideration payable in
respect of such period (for the purposes of this Section&nbsp;2.01(g), the &#147;<U>Earnout Payment
Amount</U>&#148;). On at least fifteen (15)&nbsp;days prior written notice from the Company Stockholder to
Parent given within thirty (30)&nbsp;days after the Company&#146;s Stockholder&#146;s receipt of the foregoing
certificate from Parent (with respect to the sale of Earnout Products by the Parent or Parent&#146;s
other subsidiaries), the Company Stockholder, on its own behalf and on behalf of the Incentive Plan
Representative, shall have a right to audit the books and records of the Company and the Parent to
verify Company Revenue for the Earnout Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;Parent shall pay the Earnout Payment Amount to the Escrow Agent within sixty days after
the close of the Applicable Earnout Period (such date, the &#147;<U>Notification Deadline</U>&#148;). If an
Earnout Ruling (as hereinafter defined) is subsequently duly delivered by the Arbitrating
Accountant (as hereinafter referenced) to the Escrow Agent, then (I)&nbsp;if the Earnout Ruling provides
for additional Earnout Consideration to be added to the Earnout Payment Amount, Parent shall
promptly pay such amount to the Escrow Agent, and (II)&nbsp;if the Earnout Ruling stipulates that
Parent&#146;s original Earnout Payment Amount was too high, the Escrow Agent, pursuant to the Escrow
Agreement, shall promptly pay any overage to Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;The parties acknowledge and agree that the Escrow Agreement shall provide that:
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) except with respect to funds payable to the Parent pursuant
to an Earnout Ruling, no Earnout Consideration with respect an
Earnout Period shall be released from escrow until a written
direction (&#147;<U>Written Direction</U>&#148;), executed by Parent and
Company Stockholder has been delivered to the Escrow Agent,
confirming either (x)&nbsp;there are no disagreements concerning the
amount of such consideration or (y)&nbsp;an Earnout Ruling with respect to
such consideration has been delivered; <I>provided, however</I>, if Company
Stockholder sends a Written Direction, signed solely by the Company
Stockholder (herein, a &#147;<U>Unilateral Written Direction</U>&#148;), to
the Escrow Agent that there are no disagreements in any Earnout
Payment Amount for a particular Earnout Period, then the Escrow Agent
shall immediately pay out to the Earnout Participants any Earnout
Amounts not otherwise subject to a replenishment of Escrow Cash, a
negative Post-Closing Adjustment, undisputed but unpaid Claims, or
outstanding but unresolved Claims as set forth in subsections (2),
(3)&nbsp;and (4)&nbsp;below of this Section&nbsp;2.01(g)(iv)(D). Notwithstanding
the foregoing, such Unilateral Written Direction shall not be
effective unless a copy of the same has simultaneously been delivered
to Parent and its legal counsel pursuant to Section&nbsp;9.01 herein and
seven (7)&nbsp;business days have passed without written objection being
conveyed from Parent or its legal counsel to Company Stockholder and
Escrow Agent (the &#147;<U>Parent Objection Procedure</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) upon receipt of a Written Direction with respect to the Year
1 Earnout, the Escrow Agent shall immediately pay out to the Earnout
Participants any portion of the Year 1 Earnout in excess of $420,000
(such excess, the &#147;<U>Year 1 Earnout Excess Payment</U>&#148;) and shall
then apply the balance (i.e., $420,000) as follows: <I>first</I>, to
replenish any Escrow Cash paid out during the year following Closing
in respect of Claims and a Post-Closing Adjustment, to be available
for settlement of Claims pursuant to the Escrow Agreement and Article
VIII hereof; <I>second</I>, to payment to Parent of any undisputed but
unpaid Claims; <I>third</I>, to a reserve in respect of outstanding but
unresolved Claims by Parent, to be paid out upon settlement of such
Claims pursuant to the Escrow Agreement and Article&nbsp;VIII hereof (such
three applications, collectively, &#147;<U>Priority Claims</U>&#148;); and,
<I>fourth </I>to disbursement of the balance (&#147;<U>Year 1 Balance</U>&#148;), if
any, to the Earnout Participants, <I>provided </I>that the amounts set forth
in part 1 of Schedule&nbsp;2.01(g) hereto shall be paid out of such Year 1
Balance to the parties listed in part 1 of Schedule&nbsp;2.01(g) prior to
making any payments to the Earnout Participants; <I>provided further</I>,
that to the extent any Escrow Cash was paid out to Parent in respect
of a Payable Post-Closing Adjustment, then the Year 1 Balance and &#151;
if and to the extent the Year 1 Balance is insufficient for such
purpose &#151; the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">Year 1 Earnout Excess Payment, shall be reduced by such amount,
dollar for dollar, to the extent as may be necessary to satisfy
Priority Claims;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if no Year 1 Earnout was paid &#151; then, upon receipt of a
Written Direction with respect to the Year 2 Earnout, the Escrow
Agent shall immediately pay out to the Earnout Participants any
portion of the Year 2 Earnout in excess of $630,000 (such excess, the
&#147;<U>Year 2(A) Earnout Excess Payment</U>&#148;) and shall then apply the
balance (i.e., $630,000) as follows: <I>first</I>, to payment to Parent of
any undisputed but unpaid Claims; <I>second</I>, to a reserve in respect of
outstanding but unresolved Claims by Parent, to be available for
settlement of Claims pursuant to the Escrow Agreement and Article
VIII hereof (such two applications, collectively, &#147;<U>Year 2(A)
Priority Claims</U>&#148;); and, <I>third </I>to disbursement of the balance
(&#147;<U>Year 2(A) Balance</U>&#148;), if any, to the Earnout Participants,
<I>provided </I>that the amounts set forth in part 2 of Schedule&nbsp;2.01(g)
hereto shall be paid out of such Year 2(A) Balance to the parties
listed in part 2 of Schedule&nbsp;2.01(g) prior to making any payments to
the Earnout Participants; <I>provided further</I>, that to the extent any
Escrow Cash was paid out to Parent in respect of a Payable
Post-Closing Adjustment, then the Year 2(A) Balance and &#151; if and to
the extent the Year 2(A) Balance is insufficient for such purpose &#151;
the Year 2(A) Earnout Excess Payment, shall be reduced by such
amount, dollar for dollar, to the extent as may be necessary to
satisfy Year 2(A) Priority Claims;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the Year 1 Earnout was paid &#151; then, upon receipt of a
Written Direction with respect to the Year 2 Earnout, the Escrow
Agent shall deal with such Year 2 Earnout as follows: <I>first</I>, to
payment to Parent of any undisputed but unpaid Claims; <I>second</I>, to a
reserve in respect of outstanding but unresolved Claims by Parent, to
be available for settlement of Claims pursuant to the Escrow
Agreement and Article&nbsp;VIII hereof (such two applications, both
subject to the limitation set forth in Section&nbsp;8.09(b), collectively,
&#147;<U>Year 2(B) Priority Claims</U>&#148;); and, <I>third </I>to disbursement of
the balance (&#147;<U>Year 2(B) Balance</U>&#148;), if any, to the Earnout
Participants, <I>provided </I>that that the amounts set forth in part 2 of
Schedule&nbsp;2.01(g) hereto shall be paid out of such Year 2(B) Balance
to the parties listed in part 2 of Schedule&nbsp;2.01(g) prior to making
any payments to the Earnout Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any payment made pursuant to this Section&nbsp;2.01(g)(iv)(D) to persons listed on Schedule&nbsp;2.01(g)
shall be referred to herein, in the Escrow Agreement and in any Written Direction or Unilateral
Written Direction as a &#147;Schedule&nbsp;2.01(g) Payment.&#148; It is specifically acknowledged and agreed by
the parties that the amounts set forth on Schedule&nbsp;2.01(g) comprise Transaction Expenses, the
payment of which has been deferred
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding anything to the contrary in this Section&nbsp;2.01(g)(iv)(D), upon receipt of a
Written Direction or a Unilateral Written Direction (and compliance, in the case of a Unilateral
Written Objection, with the Parent Objection Procedure), all Earnout Amounts which are in escrow
which are not held for (1)&nbsp;replenishment of the Escrow Cash, (2)&nbsp;payment of amounts owed due to
negative Post-Closing Adjustments, (3)&nbsp;payment of unsettled and unpaid Claims or (4)&nbsp;reservation
against outstanding but unresolved Claims, or which are not required to be paid to those persons
and in those amounts described in Schedule&nbsp;2.01(g), shall be immediately disbursed to the Escrow
Participants, all pursuant to the Escrow Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>Disagreements over Earnout Consideration</U>. If the Company Stockholder disagrees
with Parent&#146;s calculation of the Earnout Consideration payable for an Earnout Period, the Company
Stockholder shall, on its own behalf and on behalf of the Incentive Plan Representative, deliver to
Parent, by the date 45&nbsp;days after the date on which Parent shall have delivered to the Company
Stockholder the certificate indicating the amount of Company Revenue and any applicable Earnout
Consideration payable to the Company Stockholder for the Earnout Period (the &#147;<U>Objection
Deadline Date</U>&#148;), a reasonably detailed statement describing its objections (if any) to Parent&#146;s
calculations and its assertion of the appropriate calculation of Earnout Consideration. If the
Company Stockholder timely objects to such calculations from Parent and offers its own calculation,
such objections shall be resolved as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;Parent and the Company Stockholder shall first use reasonable efforts to resolve such
objections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;If Parent and the Company Stockholder do not reach a resolution of all objections set
forth on the Company Stockholder&#146;s statement of objections within 30&nbsp;days after delivery of such
statement of objections, Parent and the Company Stockholder shall, within 30&nbsp;days following the
expiration of such 30-day period, engage an Arbitrating Accountant (as referenced below), pursuant
to an engagement agreement executed by Parent, the Company Stockholder and the Arbitrating
Accountant, to resolve any remaining objections set forth on such Company Stockholder&#146;s statement
of objections and its calculation (the &#147;<U>Unresolved Objections</U>&#148;). &#147;<U>Arbitrating
Accountant</U>&#148; shall mean an accountant selected by Parent and reasonably acceptable to the
Company Stockholder, which has not performed services for Parent or the Company Stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;Parent and the Company Stockholder shall jointly submit to the Arbitrating Accountant,
within 10&nbsp;days after the date of the engagement of the Arbitrating Accountant (as evidenced by the
date of the engagement agreement), a copy of such calculations of the Earnout Consideration, a copy
of the statement of objections delivered by the Company Stockholder to Parent, and a statement
setting forth the resolution of any objections agreed to by Parent and the Company Stockholder.
Each of Parent and the Company Stockholder shall submit to the Arbitrating Accountant (with a copy
delivered to the other party on the same day), within 45&nbsp;days after the date of the engagement of
the Arbitrating Accountant, a memorandum (which may include supporting exhibits) setting forth
their respective positions on the Unresolved Objections. Each of Parent and the Company Stockholder
may (but shall not be required to) submit to the Arbitrating Accountant (with a copy delivered to
the other party on the same day), within 60&nbsp;days after the date of the engagement of the
Arbitrating Accountant, a memorandum responding to the initial memorandum submitted to the
Arbitrating Accountant by the other
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">party. Unless expressly requested in writing by the Arbitrating Accountant in a request made
known to both Parent and the Company Stockholder, neither party may present any additional
information or arguments to the Arbitrating Accountant, either orally or in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;Within 90&nbsp;days after the date of its engagement hereunder (the &#147;<U>Determination
Deadline</U>&#148;), the Arbitrating Accountant shall determine whether the objections raised by the
Company Stockholder are valid in light of the definition of Company Revenue contained herein and
the calculation of Earnout Consideration under Section&nbsp;2.01(g)(iii) and shall issue a ruling
(&#147;<U>Earnout Ruling</U>&#148;) which shall include a calculation of the Earnout Consideration for the
Earnout Period in accordance with Section&nbsp;2.01(g), as adjusted pursuant to any resolutions to
objections agreed upon by Parent and the Company Stockholder and pursuant to the Arbitrating
Accountant&#146;s resolution of the Unresolved Objections. Such calculation of the Earnout Consideration
for the Earnout Period shall be deemed to be final. The Arbitrating Accountant shall provide
copies, by the Determination Deadline, of any Earnout Ruling to each of the Parent, the Company
Stockholder, the Incentive Plan Representative and the Escrow Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;The resolution by the Arbitrating Accountant of the Unresolved Objections shall be
conclusive and binding upon Parent, the Company Stockholder and the Incentive Plan Representative.
Parent and the Company Stockholder agree that the procedure set forth in this Section&nbsp;2.01(g)(v)
for resolving disputes with respect to the payout of the Earnout Consideration for the Earnout
Period shall be the sole and exclusive method for resolving any such disputes; provided that this
provision shall not prohibit either party from instituting litigation to enforce the ruling of the
Arbitrating Accountant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;The fees and expenses of the Arbitrating Accountant shall be borne by Parent or the
Company Securityholders depending on which party&#146;s calculation of the Earnout Consideration is
furthest away from the final Earnout Consideration determined by the Arbitrating Accountant (and to
the extent that the Company Stockholder&#146;s calculation of the Earnout Consideration is furthest away
from that determined by the Arbitrating Accountant, Parent and the Company Stockholder shall cause
the Escrow Agent to deduct such fees and expenses of the Arbitrating Accountant and to pay such
amount to Parent).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;<U>Company Revenue</U>. For purposes of this Agreement, &#147;<U>Company Revenue</U>&#148; for
an Earnout Period shall be the aggregate amount of revenue from sales (excluding taxes) in the
Earnout Period of the Earnout Products, Integrated Earnout Products and Bundled Earnout Products
(as such terms are hereinafter defined) by the Company, the Parent, or the Parent&#146;s other
subsidiaries into the Company&#146;s or the Parent&#146;s sales channels, as determined in accordance with
GAAP and as consistently applied by the Company in the Company Financial Statements or the Parent
in the Parent&#146;s consolidated financial statements, as the case may be. Any subsequent change in
the GAAP voluntarily adopted by the Company in its financial statements or the Parent in the
Parent&#146;s consolidated financial statements, as the case may be, that would adversely affect Company
Revenue shall not be taken into account for purposes of calculating Company Revenue for purposes of
this Agreement (regardless of how Company Revenue is accounted for other purposes such as Parent&#146;s
reporting or internal accounting). For purposes of determining Company Revenue for an Earnout
Period, Parent shall not impose on
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Company any adjustment or charge in the nature of a general and administrative, management
or similar adjustment or charge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company Revenue from the Bundled Earnout Products shall be computed by the following
formula:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>(Sale price of the Bundled Earnout Products) x (Revenue from Bundled SKUs)</U><BR>
(Sale price of the Bundled Earnout Products &#043; Sale Price of Parent Products)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company Revenue from the Integrated Earnout Products shall be computed by the following
formula:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>(Cost of the Integrated Earnout Product) x (Revenue from the integrated product of the Parent)</U><BR>
Cost of the Integrated Earnout Product of the Parent
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost for the above purposes would be computed in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;<U>Earnout Products</U>. For purposes of this Agreement, &#147;<U>Earnout Products</U>&#148;
shall mean each of the products currently produced, manufactured, marketed, licensed, sold or
distributed by the Company and its Subsidiaries or currently in development by the Company or its
Subsidiaries and not yet in the marketplace, including derivatives and updates of all such
products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;<U>Integrated Earnout Products</U>. For purposes of this Agreement, &#147;<U>Integrated
Earnout Products</U>&#148; shall mean Earnout Products sold during an Earnout Period which have been
integrated into products of the Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;<U>Bundled Earnout Products</U>. For purposes of this Agreement &#147;<U>Bundled Earnout
Products</U>&#148; shall mean an Earnout Product sold during an Earnout Period, where products of the
Parent and Earnout Products are sold in combination as a unique and single SKU.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02 <U>Company Options. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent is not assuming, and shall not assume, any obligations or Liabilities under (a)&nbsp;any
option or similar plan of the Company or its Subsidiaries, (b)&nbsp;any outstanding Company Options, or
(c)&nbsp;any other direct or indirect rights to acquire shares of Company Capital Stock (other than to
make the payments contemplated under Section&nbsp;2.01(d)). On the Closing Date, any option or similar
plan of the Company or its Subsidiaries, the Company Options, and any other direct or indirect
rights to acquire shares (or Company Options) of Company Capital Stock from the Company shall be
terminated without further obligation or Liability of the Company, Parent or the Surviving
Corporation. Parent shall not be required to substitute any equivalent option or right for any such
terminated Company Option or right.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03 <U>Escrow.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Effective Time, Parent shall withhold the Escrow Cash from the Closing Cash
Consideration payable, in accordance with the Merger Consideration Certificate, to the Incentive
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plan Representative (on behalf of the Incentive Plan Participants), the Company Stockholder
and Piper Jaffray &#038; Co. (&#147;<U>Piper Jaffray</U>&#148;). For the purposes of this Section&nbsp;2.03, the
Incentive Plan Representative and the Company Stockholder are together referred to as the
&#147;<U>Escrow Participants</U>.&#148; Simultaneously with the execution and delivery of this Agreement,
Parent, the Incentive Plan Representative (on behalf of the Incentive Plan Participants) and the
Escrow Agent shall enter into an escrow agreement (the &#147;<U>Escrow Agreement</U>&#148;) which will
provide the terms and conditions for the release of the Escrow Cash, along with any other amounts
deposited with the Escrow Agent as security for the indemnification obligations of Article&nbsp;VIII
pursuant to the terms of this Agreement (such amounts, together with the Escrow Cash, comprising
the &#147;<U>Escrow Amount</U>&#148;), after the second anniversary of the Closing Date, subject to the
terms of this Agreement and the Escrow Agreement. On the Closing Date, Parent shall cause the
Escrow Cash to be deposited with the Escrow Agent. The Escrow Agent shall hold the Escrow Amount as
security for the indemnification rights under Article&nbsp;VIII and pursuant to the terms of that
certain letter agreement dated as of October&nbsp;30, 2009 between Piper Jaffray and NetStreams, L.L.C.
(the &#147;<U>Piper Jaffray Agreement</U>&#148;), amending that certain engagement letter between Piper
Jaffray and NetStreams, L.L.C. dated February&nbsp;2, 2009. The parties intend that, for tax purposes,
the Escrow Cash shall qualify for installment sale treatment under &#167;453 of the Code. A portion of
the Escrow Cash will be treated as imputed interest to the extent required under the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.04 <U>Closing Adjustment. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Closing Adjustment</U><B>. </B>As soon as practicable before the Closing, the Company shall
prepare and deliver to Parent a statement setting forth its good faith estimate of Closing Working
Capital (the &#147;<U>Estimated Closing Working Capital</U>&#148;), which statement shall contain an
estimated balance sheet of the Company as of the Closing Date (without giving effect to the
transactions contemplated herein), a calculation of Estimated Closing Working Capital (the
&#147;<U>Estimated Closing Working Capital Statement</U>&#148;), and a certificate of the Company&#146;s Chief
Financial Officer that the Estimated Closing Working Capital Statement was prepared in accordance
with GAAP, consistently applied, subject to the following (the &#147;<U>GAAP Exceptions</U>&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;With respect to accounts receivable, no allowance shall be provided for doubtful accounts.
All known bad debts as of the Effective Date would be deducted from accounts receivable.
Receivables attributable to products sent as advance replacement to customers shall be valued at
10% of the recorded receivable, and products loaned to customers and manufacturer representatives
shall be valued at 42% of their cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;With respect to inventory, refurbished inventory in normal working condition shall be
valued at 70% of the average cost. Inventory returned by customers, but not yet refurbished to
working condition shall be valued at 35% of the average cost. No other reserves against inventory
shall be permitted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;With respect to accounts payable, all known payables including with respect to inventory
received, shall be taken into account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;With respect to accrued expenses, in calculating accrued expenses, the following amounts
shall be disregarded:
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;expenses for services received but for which amounts due are not known or invoiced, not
exceeding $50,000 in aggregate before the Effective Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;salaries and related employer taxes accrued until the Effective Date in respect of the
first payroll to be paid after closing, excluding termination bonuses and other payments;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;vacation accrued for continuing employees; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;interest and finance charges accrued to the extent of $17,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;With respect to warranty claims, accrual for warranty claims shall be restricted to
$85,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;<U>Closing Adjustment</U>&#148; shall be an amount equal to the Estimated Closing Working
Capital minus $1,000,000 (the &#147;<U>Target Working Capital</U>&#148;). If the Closing Adjustment is a
positive number, the Closing Cash Consideration shall be increased by the amount of the Closing
Adjustment. If the Closing Adjustment is a negative number, the Closing Cash Consideration shall be
reduced by the amount of the Closing Adjustment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Working Capital</U>&#148; shall be defined as the Current Assets of the Company as at
the Closing Date less the Current Liabilities of the Company as at the Closing Date. &#147;<U>Current
Assets</U>&#148; of the Company shall mean the sum of accounts receivable, prepaid expenses, inventories
and all other current assets of the Company, including cash and cash equivalents, all as determined
in accordance with GAAP, consistently applied. &#147;<U>Current Liabilities</U>&#148; of the Company shall
mean the sum of all accounts payable, accrued expenses, and all other current payables or current
accrued liabilities of the Company, but excludes any Indebtedness or Transaction Expenses, all as
determined in accordance with GAAP, consistently applied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Post-Closing Adjustment</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Within sixty (60)&nbsp;days after the Closing Date, Parent shall prepare and deliver to Company
Stockholder a statement setting forth its calculation of Closing Working Capital, which statement
shall contain a balance sheet of the Company as of the Closing Date (without giving effect to the
transactions contemplated herein), a calculation of Closing Working Capital (the <U>&#147;Closing
Working Capital Statement</U>&#148;) and a certificate of the Chief Financial Officer of Parent that the
Closing Working Capital Statement was prepared in accordance with GAAP, consistently applied,
subject to the GAAP Exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Closing Working Capital Statement shall indicate whether a post-closing adjustment is
payable with respect to working capital. The post-closing adjustment shall be an amount equal to
the Closing Working Capital minus the Estimated Closing Working Capital (the &#147;<U>Post-Closing
Adjustment</U>&#148;), provided that no amount shall be payable pursuant to this Section&nbsp;2.04 with
respect to a Post-Closing Adjustment unless the Post-Closing Adjustment exceeds $50,000 (the
&#147;<U>Post-Closing Adjsutment Threshold</U>&#148;). If the Post-Closing Adjustment Threshold is met,
then only that amount of the Post-Closing Adjustment in excess of $25,000 shall be payable
hereunder (such amount, the &#147;<U>Payable Post-Closing Adjustment</U>&#148;).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Examination and Review</U><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Examination.</U> After receipt of the Closing Working Capital Statement, Company
Stockholder shall have 30&nbsp;days (the &#147;<U>Review Period</U>&#148;) to review the Closing Working Capital
Statement. During the Review Period, Company Stockholder and Company Stockholder&#146;s Accountants
shall have full access to the books and records of the Company, the personnel of, and working
papers prepared by, Parent and/or Parent&#146;s Accountants to the extent that they relate to the
Closing Working Capital Statement and to such historical financial information (to the extent in
Parent&#146;s possession) relating to the Closing Working Capital Statement as Company Stockholder may
reasonably request for the purpose of reviewing the Closing Working Capital Statement and to
prepare a Statement of Objections (defined below), <I>provided, that </I>such access shall be in a manner
that does not interfere with the normal business operations of Parent or the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Objection.</U> On or prior to the last day of the Review Period, Company Stockholder
may object to the Closing Working Capital Statement by delivering to Parent a written statement
setting forth Company Stockholder&#146;s objections in reasonable detail, indicating each disputed item
or amount and the basis for Company Stockholder&#146;s disagreement therewith (the &#147;<U>Statement of
Objections</U>&#148;). If Company Stockholder fails to deliver the Statement of Objections before the
expiration of the Review Period, the Closing Working Capital Statement and the Post-Closing
Adjustment, as the case may be, reflected in the Closing Working Capital Statement shall be deemed
to have been accepted by Company Stockholder. If Company Stockholder delivers the Statement of
Objections before the expiration of the Review Period, Parent and Company Stockholder shall
negotiate in good faith to resolve such objections within 30&nbsp;days after the delivery of the
Statement of Objections (the &#147;<U>Resolution Period</U>&#148;), and, if the same are so resolved within
the Resolution Period, the Post-Closing Adjustment and the Closing Working Capital Statement with
such changes as may have been previously agreed in writing by Parent and Company Stockholder, shall
be final and binding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U>Resolution of Disputes.</U> If Company Stockholder and Parent fail to reach an
agreement with respect to all of the matters set forth in the Statement of Objections before
expiration of the Resolution Period, then any amounts remaining in dispute (&#147;<U>Disputed
Amounts</U>&#148; and any amounts not so disputed, the &#147;<U>Undisputed Amounts</U>&#148;) shall be submitted
for resolution to the office of PMB Helin Donovan, LLP or, if PMB Helin Donovan, LLP is unable to
serve, Parent and Company Stockholder shall appoint by mutual agreement the office of an impartial
nationally recognized firm of independent certified public accountants other than Company
Stockholder&#146;s Accountants or Parent&#146;s Accountants (the &#147;<U>Independent Accountants</U>&#148;) who,
acting as experts and not arbitrators, shall resolve the Disputed Amounts only and make any
adjustments to the Post-Closing Adjustment, as the case may be, and the Closing Working Capital
Statement. The parties hereto agree that all adjustments shall be made without regard to
materiality. The Independent Accountants shall only decide the specific items under dispute by the
parties and their decision for each Disputed Amount must be within the range of values assigned to
each such item in the Closing Working Capital Statement and the Statement of Objections,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U>Fees of the Independent Accountants.</U> Company Stockholder shall pay a portion of
the fees and expenses of the Independent Accountants equal to 100% multiplied
</DIV>


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</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by a fraction, the numerator of which is the amount of Disputed Amounts submitted to the
Independent Accountants that are resolved in favor of Parent (that being the difference between the
Independent Accountants&#146; determination and Company Stockholder&#146;s determination) and the denominator
of which is the total amount of Disputed Amounts submitted to the Independent Accountants (that
being the sum total by which Parent&#146;s determination and Company Stockholder&#146;s determination differ
from the determination of the Independent Accountants). Parent shall be entitled, at its option, to
request the Escrow Agent to pay any such amount payable by the Company Stockholder, as such amount
shall be noted by the Independent Accountants in the Payable Post-Closing Adjustment Determination,
out of the Escrow Amount. Parent shall pay that portion of the fees and expenses of the
Independent Accountants that Company Stockholder is not required to pay hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>Determination by Independent Accountants.</U> The Independent Accountants shall make a
determination (&#147;<U>Payable Post-Closing Adjustment Determination</U>&#148;) as soon as practicable
within 30&nbsp;days (or such other time as the parties hereto shall agree in writing) after their
engagement, and shall deliver copies of such Determination to Parent, Company Stockholder,
Incentive Plan Representative and Escrow Agent. The Independent Accountants&#146; resolution of the
Disputed Amounts and their adjustments to the Closing Working Capital Statement and/or the
Post-Closing Adjustment, if any, shall be conclusive and binding upon the parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;<U>Payments of Post-Closing Adjustment.</U> Except as otherwise provided herein, any
payment of the Payable Post-Closing Adjustment, together with interest calculated as set forth
below, shall be due within ten (10)&nbsp;Business Days of acceptance of the applicable Closing Working
Capital Statement or, if there are Disputed Amounts, then within ten (10)&nbsp;Business Days of the
delivery of the Payable Post-Closing Adjustment Determination. Any Payable Post-Closing Adjustment
payable to Parent shall be paid out of the Escrow Cash, pursuant to the terms of the Escrow
Agreement. Any Payable Post-Closing Adjustment payable to Company Stockholder and Incentive Plan
Participants shall paid by Parent to the Escrow Agent, and shall thereafter be immediately
disbursed by the Escrow Agent. The amount of any Payable Post-Closing Adjustment shall bear
interest from and including the Closing Date to but excluding the date of payment at a rate per
annum equal to six percent (6%). Such interest shall be calculated daily on the basis of a 365&nbsp;day
year and the actual number of days elapsed, without compounding, and shall be included in the total
amount of any Payable Post-Closing Adjustment reflected in a Payable Post-Closing Adjustment
Determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Adjustments for Tax Purposes</U>. Any payments made pursuant to this Section&nbsp;2.04
shall be treated as adjustments to the Merger Consideration by the parties for Tax purposes, unless
otherwise required by Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05 <U>Effects of the Merger.</U> At and upon the Effective Time:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the separate existence of Merger Sub shall cease and Merger Sub shall be merged with and
into the Company, and the Company shall be the surviving corporation of the Merger pursuant to the
terms of this Agreement and a certificate of merger in the form attached hereto as Exhibit&nbsp;B (as
required by the DGCL) (the &#147;<U>Certificate of Merger</U>&#148;) which shall have been filed with the
Secretary of State of the State of Delaware;
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the certificate of incorporation of the Surviving Corporation shall be amended in its
entirety to read as set forth in the Certificate of Merger;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the bylaws of the Surviving Corporation shall be amended in its entirety to read as the
bylaws of Merger Sub;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the officers of Merger Sub immediately prior to the Effective Time shall be appointed as
the officers of the Surviving Corporation immediately after the Effective Time until their
respective successors are duly appointed;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the members of the Board of Directors of Merger Sub immediately prior to the Effective
Time shall be elected as the members of the Board of Directors of the Surviving Corporation
immediately after the Effective Time until their respective successors are duly elected or
appointed and qualified; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;the Merger shall, from and after the Effective Time, have all of the effects provided by
the DGCL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.06 <U>Tax Consequences and Withholding. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The parties intend that the Merger shall be treated as a taxable purchase of securities of
the Company pursuant to the Code and each party shall report the transactions contemplated hereby
consistently with such intent. However, no party hereto makes any representation or warranty
regarding the Tax consequences of any transaction contemplated by this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Parent or Parent&#146;s agent shall be entitled to deduct and withhold from the Merger
Consideration any amounts required to be deducted and withheld under the Code, or any applicable
provision of state, local or foreign tax law, with respect to the making of such payment. To the
extent that amounts are so withheld and properly remitted to the appropriate Governmental
Authority, such withheld amounts shall be (i)&nbsp;treated for all purposes of this Agreement as having
been paid to the Company Stockholder or the Incentive Plan Participants, as applicable, and (ii)
deposited on such person&#146;s behalf with the appropriate taxing authorities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding anything in this agreement to the contrary, each party (and its
representatives, agents and employees) may consult any tax advisor regarding the U.S. federal tax
treatment and U.S. federal tax structure of the transactions contemplated hereby and may disclose
to any person, without limitation of any kind, the U.S. federal tax treatment and U.S. federal tax
structure of the transactions contemplated hereby and all materials (including opinions or other
tax analyses) that are provided relating to such treatment or structure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.07 <U>Further Assurances. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If at any time before or after the Effective Time Parent reasonably believes or is advised
that any further instruments, deeds, assignments or assurances are reasonably necessary or
desirable to consummate the Merger or to carry out the purposes and intent of this Agreement at or
after the Effective Time, then the Company, Parent, the Surviving Corporation and their respective
officers or directors shall execute and deliver all such proper deeds, assignments,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">instruments and assurances and do all other things reasonably necessary or desirable to
consummate the Merger and to carry out the purposes and intent of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.08 <U>Dissenting Shares. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding any provision of this Agreement to the contrary, shares of Company Capital
Stock that are outstanding immediately prior to the Effective Time and that are held by a
stockholder of the Company who shall have neither voted in favor of the Merger nor consented
thereto in writing and who shall have demanded properly in writing appraisal for such shares in
accordance with Section&nbsp;262 of the DGCL (collectively, the &#147;<U>Dissenting Shares</U>&#148;) shall not
be converted into, or represent the right to receive, any Merger Consideration. Such stockholder
shall be entitled to receive payment of the appraised value of such Company Capital Stock held by
them in accordance with the provisions of such Section&nbsp;262, except that all Dissenting Shares held
by stockholders of the Company who shall have failed to perfect or who effectively shall have
withdrawn or lost their rights to appraisal of such shares under such Section&nbsp;262 shall thereupon
be deemed to have been converted into, and to have become exchangeable for, as of the Effective
Time, the right to receive any Merger Consideration, without any interest thereon, upon surrender
of the certificate or certificates, if any, that formerly evidenced such shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall give Parent (i)&nbsp;prompt notice of any demands for appraisal received by
the Company, withdrawals of such demands, and any other instruments served pursuant to the DGCL and
received by the Company and (ii)&nbsp;the opportunity to participate in all negotiations and proceedings
with respect to demands for appraisal under the DGCL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.09 <U>Austin Ventures VIII, L.P. Convertible Notes. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company and the Company Stockholder will cause any principal and interest due under the
Austin Ventures VIII, L.P. Convertible Notes to be converted, in accordance with the terms thereof
and immediately prior to Closing, into shares of Company Series&nbsp;B Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <U>Transaction Fees</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Parent and the Company shall bear and pay all of its respective fees, costs and
expenses (including all legal fees and expenses) that have been incurred or that may in the future
be incurred in connection with the transactions contemplated hereby, whether or not the Merger is
consummated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <U>Incentive Plan Representative.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Incentive Plan Participants shall appoint Kevin A. Reinis as Incentive Plan
Representative, to act as agent and attorney-in-fact for and on behalf of the Incentive Plan
Participants and to authorize distribution of the Escrow Cash in satisfaction of claims by such
Parent Indemnified Parties, and to take all actions necessary or appropriate in the judgment of
Incentive Plan Representative for the accomplishment of the foregoing. No bond shall be required
of the Incentive Plan Representative, and the Incentive Plan Representative shall not receive
compensation for his or her services. Notices or communications to or from the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Incentive Plan Representative shall constitute notice to or from each Incentive Plan
Participant. The Incentive Plan Representative shall not have any duty to ascertain or to inquire
as to the performance or observance of any of the terms, covenants or conditions of this Agreement.
As to any matters not expressly provided for in this Agreement, the Incentive Plan Representative
shall not exercise any discretion or take any action. The Incentive Plan Representative shall have
no ability to consent to the amendment of the terms of this Agreement, except with respect to
matters which do not have or are not reasonably expected to have, a material adverse effect upon
the Incentive Plan Participants, but shall be entitled to waive or agree to a delay of performance
by Parent or Merger Sub of their covenants hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Incentive Plan Representative shall delegate the Company Stockholder to act as agent
for the Incentive Plan Representative and the Incentive Plan Participants with respect to the
Post-Closing Adjustment, the Earnout Payment Amounts and Claims under Article&nbsp;VIII and any disputes
or disagreements thereto; <I>provided, however</I>, the Incentive Plan Representative shall be copied on
all notices regarding the Earnout Payment Amounts, the Post-Closing Adjustments and any Claims
under Article&nbsp;VIII, and the Company Stockholder shall keep the Incentive Plan Representative
reasonably informed as to the status of any such disputes or Claims and shall take into
consideration the reasonable recommendations of the Incentive Plan Representative with respect to
such disputes or Claims.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If the Incentive Plan Representative resigns or becomes legally incapacitated, or is
otherwise similarly unable to carry out its duties hereunder, then Peter Radekevich shall be
designated as the Incentive Plan Representative, and if that person resigns or becomes legally
incapacitated, or is otherwise similarly unable to carry out its duties hereunder, then the Company
Stockholder shall become the Incentive Plan Representative.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE III</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">REPRESENTATIONS AND WARRANTIES OF THE COMPANY

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an inducement to Parent and Merger Sub to enter into this Agreement, and except as
disclosed in or qualified by the disclosure schedule prepared by the Company and delivered by the
Company to Parent and Merger Sub simultaneously with the execution and delivery of this Agreement
(the &#147;<U>Disclosure Schedule</U>&#148;), the Company hereby represents and warrants to Parent and
Merger Sub that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01 <U>Organization and Qualification; Subsidiaries. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Organization and Qualification.</U> The Company is a corporation duly incorporated
and validly existing and in good standing under the laws of the State of Delaware and has the
requisite corporate power and authority and all necessary governmental approvals to own, lease and
operate its properties and to carry on its business as it is now being conducted, except where the
failure to have such power, authority and governmental approvals would not prevent or materially
delay consummation of the Merger and would not reasonably be expected to have a Material Adverse
Effect. The Company is duly qualified or licensed as a foreign legal entity to do business, and is
in good standing, in each jurisdiction where the character of the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">properties owned, leased or operated by it or the nature of its business makes such
qualification or licensing necessary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Subsidiaries</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Section&nbsp;3.01(b)(i) of the Disclosure Schedule sets forth a true, correct and complete list
of each Subsidiary of the Company. Each Subsidiary of the Company is a corporation or other
business entity duly organized and validly existing under the laws of its jurisdiction of
organization and has the requisite corporate or other organizational power and authority and all
necessary governmental approvals to own, lease and operate its properties and to carry on its
business as it is now being conducted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Each Subsidiary of the Company is duly qualified or licensed as a foreign legal entity to
do business, and is in good standing, in each jurisdiction where the character of the properties
owned, leased or operated by it or the nature of its business makes such qualification or licensing
necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Except as otherwise set forth on Section&nbsp;3.01(b)(iii) of the Disclosure Schedule, the
Company is the direct or indirect owner of all of the issued and outstanding shares of capital
stock or other equity ownership interests of each Subsidiary, free and clear of all Encumbrances,
and all such shares or interests are duly authorized, validly issued, fully paid and nonassessable
and are not subject to any preemptive right or right of first refusal created by statute, the
certificate or articles of incorporation and bylaws or other equivalent organizational or governing
documents, as applicable, of such Subsidiary or any contract to which such Subsidiary is a party or
by which it is bound. For those Subsidiaries, if any, where the Company does not directly or
indirectly own all of the issued and outstanding shares of capital stock or other equity ownership
interests of such Subsidiary, Section&nbsp;3.01(b)(iii) of the Disclosure Schedule sets forth an
accurate list of all outstanding shares of capital stock or other units of equity ownership and the
number of shares or other units owned by the Company and each Subsidiary of the Company and by each
other person owning capital stock or other units of such entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Except as set forth on Section&nbsp;3.01(b)(iv) of the Disclosure Schedule, there are no
outstanding subscriptions, options, warrants, &#147;put&#148; or &#147;call&#148; rights, exchangeable or convertible
securities or other contracts of any character relating to the issued or unissued capital stock,
membership interests or other securities of any Subsidiary of the Company or otherwise obligating
the Company or any Subsidiary of the Company to issue, transfer, sell, purchase, redeem or
otherwise acquire or sell any such securities. Except with respect to the Subsidiaries of the
Company set forth in Section&nbsp;3.01(b)(iv) of the Disclosure Schedule, the Company does not directly
or indirectly own any equity or similar interest in, or any interest convertible into or
exchangeable or exercisable for any equity or similar interest in, any corporation, company,
partnership, joint venture or other business association or entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;As of the time of its dissolution, NetStreams International, Inc. will not hold any assets
or have any outstanding liabilities.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02 <U>Charter Documents. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company has delivered to Parent accurate and complete copies of: (i)&nbsp;the certificate
of incorporation (&#147;<U>Certificate of Incorporation</U>&#148;) and bylaws (&#147;<U>Bylaws</U>&#148;), including
all amendments thereto, of the Company (the &#147;<U>Charter Documents</U>&#148;); and (ii)&nbsp;the minutes and
other records of the meetings and other proceedings (including any actions taken by written consent
or otherwise without a meeting) of the stockholders, the Board and all committees of the Board
since January&nbsp;1, 2006, which minutes or other records contain a complete, in all material respects,
summary of all meetings of directors, stockholders and members, and all actions taken thereat or by
written consent, since January&nbsp;1, 2006. All actions taken and all transactions entered into by the
Company requiring approval under applicable Law, Material Contracts or Charter Documents have been
duly approved by all necessary action of the Board and stockholders of the Company. There has been
no violation of any of the provisions of the Charter Documents of the Company, and the Company has
not taken any action that is inconsistent in any material respect with any resolution adopted by
the Company&#146;s stockholders, the Board or any committee of the Board. The books of account, stock
records, minute books and other records of the Company are accurate, up-to-date and complete in all
material respects. The Company has also delivered to Parent a true, correct and complete copy of
the organizational and governing instrument or document of each Subsidiary of the Company, in each
case as amended to date, and each such organizational and governing instrument or document is in
full force and effect. No Subsidiary of the Company is in violation of any of the provisions of its
organizational and governing instrument or document, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.03 <U>Capitalization. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Immediately before the Effective Time, the authorized Company Capital Stock shall consist
of 45,264,535 shares: (i)&nbsp;25,900,000 shares of Company Common Stock, par value $0.001 per share,
of which 1,965,101 are issued and outstanding, and (ii)&nbsp;19,364,535 shares of Company Preferred
Stock, par value $0.001 per share, comprised of (A)&nbsp;6,300,000 shares designated as &#147;Series&nbsp;A
Convertible Preferred Stock,&#148; of which 4,550,000 are issued and outstanding, (ii)&nbsp;1,879,999 shares
designated as &#147;Series&nbsp;A-1 Convertible Preferred Stock,&#148; of which 1,866,666 are issued and
outstanding, (iii)&nbsp;1,184,536 shares designated as &#147;Series&nbsp;A-2 Preferred Stock, of which 1,091,203
are issued and outstanding, and (iv)&nbsp;10,000,000 are designated as &#147;Series&nbsp;B Redeemable Preferred
Stock,&#148; of which 9,128,558 are issued and outstanding. All issued and outstanding shares of
Company Capital Stock have been duly authorized and validly issued and are fully paid,
nonassessable and free of preemptive rights, with no personal liability attaching to the ownership
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;An aggregate of 4,285,379 shares of Company Common Stock are reserved for issuance under
the Company&#146;s 2004 Stock Plan (the &#147;<U>Company Option Plan</U>&#148;), 3,348,131 shares of Company
Common Stock are reserved for future issuance pursuant to outstanding Company Options issued under
the Company Option Plan, and 1,676,728 shares of Company Preferred Stock are reserved for future
issuance pursuant to outstanding warrants (the &#147;<U>Company Warrants</U>&#148;). All outstanding Company
Options (other than the Company Warrants) have been granted pursuant to the Company Option Plan.
Except for the Company Options, there are no options, warrants, convertible securities or other
rights, agreements, arrangements or commitments of any character relating to the issued or unissued
Company Capital Stock, or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">obligating the Company to issue or sell any shares of such capital stock, or other equity
interests in, the Company. Section&nbsp;3.03 of the Disclosure Schedule sets forth the following
information with respect to each Company Option outstanding on the date of this Agreement: (i)&nbsp;the
name of the Company Option recipient; (ii)&nbsp;the number of shares of Company Capital Stock subject to
such Company Option; (iii)&nbsp;the exercise or purchase price of such Company Option; (vi)&nbsp;the date on
which such Company Option expires; (vii)&nbsp;the tax status of each such Company Option; and (viii)
whether the exercisability of, or right to repurchase, such Company Option will be accelerated in
any way by the transactions contemplated by this Agreement. The Company has made available to
Parent accurate and complete copies of the Company Option Plan and the form of all stock option
agreements evidencing such Company Options, along with copies of each of the Company Warrants. All
shares of Company Capital Stock subject to issuance as aforesaid, upon issuance on the terms and
conditions specified in the instruments pursuant to which they are issuable, will be duly
authorized, validly issued, fully paid and nonassessable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;There are no outstanding contractual obligations of the Company to repurchase, redeem or
otherwise acquire any shares of Company Capital Stock or to provide funds to, or make any
investment (in the form of a loan, capital contribution or otherwise) in, any other person. Except
as set forth on Section&nbsp;3.03(a) of the Disclosure Schedule, there are no commitments or agreements
of any character to which the Company is bound obligating the Company to accelerate the vesting of
any Company Stock Option as a result of the Merger. All outstanding shares of Company Capital Stock
and all outstanding Company Options have been issued and granted in compliance in all material
respects with all requirements set forth in any applicable contract, agreement or instrument to
which the Company is party. The Company Stockholder is the only holder of outstanding shares of
Company Series&nbsp;B Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company Options that are cancelled and terminated by virtue of the Merger as
contemplated by Section&nbsp;2.01(d) may be cancelled and terminated without the consent of the holders
of such Company Options and without the payment of any consideration to the holders of such Company
Options.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Company has not, since the date of its incorporation, made any repurchases of its own
stock in violation of Section&nbsp;160 of the DGCL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04 <U>Authority Relative to this Agreement. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has all necessary corporate power and authority to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the Merger. The execution and
delivery of this Agreement by the Company and the consummation by the Company of the Merger have
been duly and validly authorized by all necessary corporate action on the part of the Company, and
no other corporate proceedings on the part of the Company are necessary to authorize this Agreement
or to consummate the Merger (other than, with respect to the Merger, the adoption of this Agreement
by the holders of a majority of the outstanding shares of Company Capital Stock at a properly
convened meeting of stockholders at which a quorum is present (&#147;<U>Company Securityholder
Approval</U>&#148;) and the filing and recordation of appropriate merger documents as required by DGCL).
This Agreement has been duly and validly executed and delivered by the Company and, assuming the
due authorization, execution and delivery by Parent and Merger Sub, constitutes the legal, valid
and binding obligation of the Company,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">enforceable against the Company in accordance with its terms, subject to laws of general
application relating to the public policy, bankruptcy, insolvency and relief of debtors and rules
of law governing specific performance, injunctive relief and other equitable remedies. The Board of
the Company has approved this Agreement and the Merger.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05 <U>No Conflict; Required Filings and Consents. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on Section&nbsp;3.05(a) of the Disclosure Schedule, the execution and
delivery of this Agreement, and the performance of this Agreement, by the Company, and the
consummation of the Merger, shall not, (i)&nbsp;conflict with or violate the Certificate of
Incorporation, Bylaws or any resolution, currently in effect, adopted by the Board (or any
committee thereof), (ii)&nbsp;assuming that all consents, approvals and other authorizations described
in Section&nbsp;3.05(b) have been obtained and that all filings and other actions described in Section
3.05(b) have been made or taken, violate any United States or non-United States national, state,
provincial, municipal or local statute, law, ordinance, regulation, rule, code, executive order,
injunction, judgment, decree or other order (&#147;<U>Law</U>&#148;) applicable to the Company or its
Subsidiaries or by which any property or asset of the Company or its Subsidiaries is bound or
affected, or (iii)&nbsp;result in any breach of, or constitute a default (or an event which, with notice
or lapse of time or both, would become a default) under, or give to others any right of
termination, amendment, acceleration or cancellation of, or result in the creation of a lien or
other encumbrance on any material property or asset of the Company or its Subsidiaries pursuant to,
any Material Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution and delivery of this Agreement by the Company do not, and the performance of
this Agreement by the Company will not, require any consent, approval, authorization or permit of,
or filing with or notification to, any United States or non-United States national, state,
provincial, municipal or local government, governmental, regulatory or administrative authority,
agency, instrumentality or commission or any court, tribunal, or judicial or arbitral body (a
&#147;<U>Governmental Authority</U>&#148;) that shall not have been obtained or filed as of the Closing,
except for the filing and recordation of appropriate merger documents and as required by the DGCL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06 <U>Permits; Compliance. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company has all material franchises, grants, authorizations, licenses, permits,
easements, variances, exceptions, consents, certificates, approvals and orders of any Governmental
Authority necessary for the Company and its Subsidiaries to own, lease and operate its properties
or to carry on its business as it is now being conducted (the &#147;<U>Permits</U>&#148;). Section&nbsp;3.06 of
the Disclosure Schedule lists all Permits of the Company and its Subsidiaries. No suspension or
cancellation of any of the Permits is pending or, to the knowledge of the Company, threatened.
Neither the Company nor any of its Subsidiaries is, in any material respect, in default, breach or
violation of, (i)&nbsp;any Law applicable to the Company or a Subsidiary or by which any property or
asset of the Company or a Subsidiary is bound or affected, or (ii)&nbsp;any material note, bond,
mortgage, indenture, contract, agreement, lease, license, Permit, franchise or other instrument or
obligation to which the Company or a Subsidiary is a party or by which the Company or a Subsidiary
or any property or asset of the Company or a Subsidiary is bound.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;3.06 of the Disclosure Schedule, neither the Company nor
any of its Subsidiaries has received, at any time since March&nbsp;31, 2009, any formal written notice
or other formal written communication from any Governmental Authority or any other person regarding
(i)&nbsp;any actual, alleged, possible, or potential violation of or failure to comply with any term or
requirement of any Permit, or (ii)&nbsp;any actual, proposed, possible, or potential revocation,
withdrawal, suspension, cancellation, termination of, or modification to any Permit. To the
knowledge of the Company, after due inquiry, all applications required to have been filed for the
renewal of any Permit have been duly filed on a timely basis with the appropriate Governmental
Authority, and all other filings required to have been made with respect to any such Permit have
been duly made on a timely basis with the appropriate Governmental Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.07 <U>Financial Statements. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;3.07 of the Disclosure Schedule includes the Company Financial Statements. The
Company Financial Statements (i)&nbsp;are derived from and in accordance with the books and records of
the Company and its Subsidiaries, (ii)&nbsp;complied as to form in all material respects with applicable
accounting requirements with respect thereto as of their respective dates, (iii)&nbsp;have been prepared
in accordance with generally accepted accounting principles in the United States (&#147;<U>GAAP</U>&#148;)
applied on a consistent basis throughout the periods indicated and consistent with each other, and
(iv)&nbsp;fairly present in all material respects the financial position of the Company and its
Subsidiaries at the dates therein indicated and the results of operations and cash flows of the
Company and its Subsidiaries for the periods therein specified. Without limiting the generality of
the foregoing, the Company (including its Subsidiaries) did not have at March&nbsp;31, 2009, nor has it
incurred since that date, any liabilities or obligations (whether absolute, accrued, contingent or
otherwise) of any nature, except, as disclosed in Section&nbsp;3.07 of the Disclosure Schedule, (1)
those that are accrued or reserved against in the Company Financial Statements or reflected in the
notes thereto or were incurred in the Ordinary Course of Business, (2)&nbsp;those that would not,
individually or in the aggregate, have a Material Adverse Effect on the Company and its
Subsidiaries or have been discharged or paid in full prior to the date hereof, and (3)&nbsp;those which
are not required to be reflected in the Company Financial Statements prepared in accordance with
GAAP consistently applied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Schedule&nbsp;3.07(b) of the Disclosure Schedule, the Company Unaudited
Financial Statements (i)&nbsp;are consistent with and were derived from the books and records of the
Company, (ii)&nbsp;present fairly the financial position and results of operations of the Company at the
dates and for the periods indicated, and (iii)&nbsp;were prepared in accordance with GAAP, consistently
applied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as and to the extent set forth in the Company Unaudited Financial Statements,
including any notes thereto, or as otherwise reflected in Section&nbsp;3.07(c) of the Disclosure
Schedule, neither the Company nor any Subsidiary has any Liability, other than those incurred after
September&nbsp;30, 2009 in the Ordinary Course of Business and that do not result from any breach of
contract, tort or violation of law. Section&nbsp;3.07(c) of the Disclosure Schedule lists all persons
who hold outstanding credit cards issued to the Company.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company and its Subsidiaries maintain a standard system of accounting established and
administered in accordance with GAAP. The Company maintains a system of internal accounting
controls for the Company and its Subsidiaries sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management&#146;s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain asset accountability, (iii)&nbsp;access to assets is permitted only in
accordance with management&#146;s general or specific authorization, and (iv)&nbsp;the recorded
accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. Section&nbsp;3.07(d) of the Disclosure
Schedule lists, and the Company has made available to Parent complete and correct copies of, all
written descriptions of, and all policies, manuals and other documents promulgating, such internal
accounting controls.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;All accounts receivable of the Company and its Subsidiaries reflected in the Company
Unaudited Financial Statements, or those that have arisen after the date thereof, have arisen from
bona fide transactions in the Ordinary Course of Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Section&nbsp;3.07(f)(i) of the Disclosure Schedule sets forth the names and locations of all
banks, trust companies, savings and loan associations and other financial institutions at which the
Company and its Subsidiaries maintain accounts of any nature and the names of all persons
authorized to draw thereon or make withdrawals therefrom. Section&nbsp;3.07(f)(ii) of the Disclosure
Schedule further lists those deposits or other amounts of cash of the Company and its Subsidiaries
as of the Closing Date that are restricted cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.08 <U>Absence of Certain Changes or Events</U>. Except as set forth in Section&nbsp;3.08 of
the Disclosure Schedule, since March&nbsp;31, 2009 there has not been:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any event, change, effect or development that, individually or in the aggregate, has had a
Material Adverse Effect on the Company or its Subsidiaries;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any declaration, setting aside or payment of any dividend or other distribution (whether
in cash, shares or property) with respect to any Company Capital Stock or any repurchase for value
by the Company of any Company Capital Stock, or with respect to the equity interest of any
Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any split, combination or reclassification of any Company Capital Stock or any issuance or
the authorization of any issuance of any other securities in respect of, in lieu of or in
substitution for shares of the Company Capital Stock, or any combination or reclassification of any
equity interest of any Subsidiary, or any issuance of any other equity interests in respect of, in
lieu of, or in substitution for equity interests of any Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (A)&nbsp;any granting by the Company or any Subsidiary to any director or executive officer of
the Company or any Subsidiary of any increase in compensation, (B)&nbsp;any granting by the Company or
any Subsidiary to any such director or executive officer of any increase in severance or
termination pay, or (C)&nbsp;any entry by the Company or any Subsidiary into, or any amendment of, any
employment, severance or termination agreement with any such director or executive officer; or
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any change in financial accounting methods, principles or practices by the Company
(including any Subsidiary) materially affecting the assets, liabilities or results of operations of
the Company and its Subsidiaries, except insofar as may have been required by a change in GAAP,
provided that any such change required by GAAP is specifically identified in Section&nbsp;3.08 of the
Disclosure Schedule.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.09 <U>Absence of Litigation. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no litigation, suit, claim, charge, action, proceeding or investigation (an
&#147;<U>Action</U>&#148;) pending or, to the knowledge of the Company, threatened in writing by or against
the Company or any Subsidiary, or against any property or asset of the Company or any Subsidiary,
before any Governmental Authority nor is there any Action pending that seeks to materially delay or
prevent the consummation of the Merger. Neither the Company nor any Subsidiary nor any property or
asset of the Company or any Subsidiary is subject to any continuing order of, consent decree,
settlement agreement or similar written agreement with, or, to the knowledge of the Company,
continuing investigation by, any Governmental Authority, or any order, writ, judgment, injunction,
decree, determination or award of any Governmental Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <U>Employee Benefit Plans. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;3.10(a) of the Disclosure Schedule lists (i)&nbsp;all employee benefit plans (as
defined in Section&nbsp;3(3) of the Employee Retirement Income Security Act of 1974, as amended
(&#147;<U>ERISA</U>&#148;)) and all bonus, stock option, stock purchase, restricted stock, incentive,
deferred compensation, retiree medical or life insurance, supplemental retirement, severance or
other material benefit plans, programs or arrangements, and all employment, termination, severance
or other material contracts or agreements (other than offer letters or agreements, forms of which
have been furnished to Parent (including by posting such documents on Parent&#146;s FTP website), that
are terminable at the will of the Company and do not provide for severance or termination
payments), to which the Company or any of its Subsidiaries is a party, with respect to which the
Company or any of its Subsidiaries has any current obligation or which are currently maintained,
contributed to or sponsored by the Company or any of its Subsidiaries for the benefit of any
current or former employee, officer or director of, or any current or former consultant to, the
Company or any of its Subsidiaries, (ii)&nbsp;each employee benefit plan for which the Company or any of
its Subsidiaries could incur liability under Section&nbsp;4069 of ERISA in the event such plan has been
or were to be terminated, (iii)&nbsp;any plan in respect of which the Company or any of its Subsidiaries
could incur liability under Section 4212(c) of ERISA, and (iv)&nbsp;any other contracts (including loan
agreements) or arrangements between the Company and/or any of its Subsidiaries and any employee of
the Company and/or such Subsidiary relating to the provision of services by such employee for the
Company and/or such Subsidiary (collectively, the &#147;<U>Plans</U>&#148;). Each Plan is in writing and the
Company has furnished to Parent (including by posting such documents on Parent&#146;s FTP website) a
true and complete copy of each Plan (and all amendments and restatements thereto), including any
welfare benefit plan (as defined in Section&nbsp;3(1) of ERISA) that is self-insured, clearly identified
as such, and any stop-loss insurance policies pertaining to such plan, and has delivered to Parent
a true and complete copy of each material document, if any, prepared in connection with each such
Plan, including, without limitation, (i)&nbsp;a copy of each trust or other funding arrangement, (ii)
each summary plan description, summary of material modifications, and material employee
communications, (iii)&nbsp;the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">three most recently filed IRS Forms 5500, including all Forms 5558 (extension of time to
file), attachments, schedules, financial statements, and accountants&#146; opinions prepared in
connection with such Forms 5500, (iv)&nbsp;the most recently received opinion, advisory, notification
and/or determination letter, as applicable, from the IRS for each such Plan, and (v)&nbsp;the most
recently prepared actuarial report and financial statement in connection with each such Plan. The
Company does not have any commitment (i)&nbsp;to create, incur liability with respect to or cause to
exist any other employee benefit plan, program or arrangement, (ii)&nbsp;to enter into any contract or
agreement to provide compensation or benefits to any individual, or (iii)&nbsp;to modify, change or
terminate any Plan, other than with respect to a modification, change or termination required by
ERISA or the Internal Revenue Code of 1986, as amended (the &#147;<U>Code</U>&#148;) or other applicable
Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;Except as set forth in Section&nbsp;3.10(b)(i) of the Disclosure Schedule, none of the
Plans (A)&nbsp;provides for the payment of any material separation, severance or termination benefits to
any person, (B)&nbsp;obligates the Company or any of its Subsidiaries to pay separation, severance or
termination benefits solely or partially as a result of any transaction contemplated by this
Agreement, or (C)&nbsp;obligates the Company or any of its Subsidiaries to make any payment or provide
any benefit as a result of a &#147;change in control,&#148; within the meaning of such term under Section
280G of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Without limiting the generality of the foregoing, Section&nbsp;3.10(b)(ii) sets forth all
severance, termination, separation or &#147;employee incentive&#148; obligations that will be payable by
Company in connection with the effectiveness of the Merger, either through termination of
employment or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;None of the Plans provides for or promises retiree medical, disability or life insurance
benefits to any current or former employee, officer or director of the Company or any of its
Subsidiaries. Except as set forth in Section&nbsp;3.10(b)(iii) of the Disclosure Schedule, each of the
Plans is subject only to the Laws of the United States or a political subdivision thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the knowledge of the Company, after due inquiry, each Plan is now and always has been
operated in all material respects in accordance with its terms and the requirements of all
applicable Laws including, without limitation, ERISA and the Code. The Company and each of its
Subsidiaries has performed all obligations required to be performed by it under, is not in any
material respect in default under or in violation of, and has no knowledge of any default or
violation by any party to, any Plan. No Action is pending or, to the knowledge of the Company,
threatened with respect to any Plan (other than claims for benefits in the ordinary course) and, to
the knowledge of the Company, no fact or event exists that could reasonably be expected to give
rise to any such Action.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;With respect to each Plan that is intended to be qualified under Section 401(a) of the
Code, (i)&nbsp;each of the Company and each of its Subsidiaries, as applicable, has timely received a
favorable opinion, advisory, notification and/or determination letter, as applicable, that such
Plan satisfies the requirement of the Code and is so qualified, and nothing has occurred since
issuance of such opinion, advisory, notification and/or determination letter, as applicable, which
would reasonably be expected to cause the loss or the tax-qualified status of such Plan; (ii)&nbsp;each
of the Company and each of its Subsidiaries, as applicable, has applied
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">timely to the Internal Revenue Service for such letter or has a remaining period of time to
apply for such letter, or (iii)&nbsp;the Company relies on a favorable Internal Revenue Service opinion
letter or advisory letter issued to the master and prototype or volume submitter plan sponsor of
such Plan. Each trust established in connection with any Plan which is intended to be exempt from
federal income taxation under Section 501(a) of the Code has received a determination or opinion
letter from the IRS that it is so exempt. To the knowledge of the Company, after due inquiry, no
fact or event has occurred since the date of such determination or opinion letter or letters from
the IRS which could reasonably be expected to adversely affect the qualified status of any such
Plan or the exempt status of any such trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;To the knowledge of the Company, no Action has been brought, or is threatened in writing,
against or with respect to any such Plan, including any audit or inquiry by the IRS or United
States Department of Labor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Each Plan can be terminated following the Effective Time in accordance with its terms
without material liability to the Company or Parent (other than ordinary administration expenses).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Neither the Company nor any of its Subsidiaries has any self-insured Plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;To the knowledge of the Company, after due inquiry, all individuals who, pursuant to the
terms of any Plan, are entitled to participate in such Plan are currently participating in such
Plan or have been offered an opportunity to do so and have declined.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;There has not been any prohibited transaction (within the meaning of Section&nbsp;406 of ERISA
or Section&nbsp;4975 of the Code) with respect to any Plan for which the Company has any Liability. None
of the Plans is subject to Title IV of ERISA and neither the Company nor any Subsidiary has
incurred, or could reasonably be expected to incur, any liability under, arising out of or by
operation of Title IV of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;All contributions, premiums or payments required to be made with respect to any Plan have
been timely made under the terms of the applicable Plan, ERISA, the Code, and any other applicable
law. All such contributions have been fully deducted for income tax purposes and no such deduction
has been challenged or disallowed by any Governmental Authority and no fact or event exists which
could reasonably be expected to give rise to any such challenge or disallowance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;There has been no termination or partial termination of any Plan within the meaning of
Section&nbsp;411(d)(3) of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Except as set forth in Section&nbsp;3.10(l) of the Disclosure Schedule, no benefit payable or
that may become payable by the Company or any of its Subsidiaries pursuant to any agreement or
arrangement, including the Company Management Incentive Plan, or as a result of, in connection with
or arising under this Agreement or the Certificate of Merger shall constitute a &#147;parachute payment&#148;
(as defined in Section&nbsp;280G(b)(2) of the Code) that is subject to the imposition of an excise tax
under Section&nbsp;4999 of the Code or that would not be deductible by reason of Section&nbsp;280G of the
Code. Except as set forth in Section&nbsp;3.10(l) of the Disclosure
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule, the Company is not a party to any: (i)&nbsp;contract agreement or arrangement with any
person (A)&nbsp;the benefits of which are contingent, or the terms of which are materially altered, upon
the occurrence of a transaction involving the Company in the nature of the Merger or any of the
other transactions contemplated by this Agreement, (B)&nbsp;providing any material term of employment or
compensation guarantee, or (C)&nbsp;providing severance benefits or other benefits after the termination
of employment of such employee regardless of the reason for such termination of employment; or (ii)
benefit plan or arrangement, any of the benefits of which shall be increased, or the vesting of
benefits of which shall be accelerated, by the occurrence of the Merger or any of the other
transactions contemplated by this Agreement, or any event subsequent to the Merger such as the
termination of employment of any person, or the value of any of the benefits of which shall be
calculated on the basis of any of the transactions contemplated by this Agreement. Neither the
Company nor any of its Subsidiaries has any obligation to pay any material amount or provide any
material benefit to any former employee or officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Neither the Company nor any of its Subsidiaries has any benefit plan which constitutes, or
has since the enactment of ERISA, constituted, (i)&nbsp;a &#147;multiemployer plan&#148; as defined in Section
3(37) of ERISA, (ii)&nbsp;a &#147;multiple employer plan&#148; as defined in ERISA or Code Section&nbsp;413(c), or
(iii)&nbsp;a &#147;funded welfare plan&#148; within the meaning of Code Section&nbsp;419. No pension plan of the
Company or any of its Subsidiaries is subject to Title IV of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Except as set forth in Section&nbsp;3.10(n) of the Disclosure Schedule, neither the Company nor
any of its Subsidiaries has any benefit plan or arrangement that has been established or
maintained, or that is required to be maintained or contributed to by the law or applicable custom
or rule of the relevant jurisdiction, outside of the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Each Plan, to the extent applicable, is in compliance in all material respects with the
continuation coverage requirements of Section&nbsp;4980B of the Code, Sections&nbsp;601 through 608 of ERISA,
the Age Discrimination in Employment Act of 1967, as amended, the Americans with Disabilities Act
of 1990, the Health Insurance Portability and Accountability Act of 1996, the Women&#146;s Health and
Cancer Rights Act of 1998, and the Family Medical Leave Act of 1993, and the Newborns&#146; and Mothers&#146;
Health Protection Act of 1996 (including any amendments to or regulations or other guidance
promulgated under any of the foregoing acts), or any similar provisions of state law, as such
requirements affect the Company, any of its Subsidiaries and their employees. The Company and each
applicable Subsidiary of the Company is in compliance in all material respects with the applicable
health care continuation and notice provisions of the Consolidation Omnibus Budget Reconciliation
Act of 1985, as amended (&#147;<U>COBRA</U>&#148;) and the regulations (including any proposed regulations)
thereunder, or any similar state statute. No Plan (other than life insurance arrangements) provides
post-termination or retiree welfare benefits to any person for any reason, except as may be
required by COBRA or other applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;There has been no amendment to, written interpretation or announcement (whether or not
written) by the Company relating to, or change in employee participation or coverage under, any
Plan that would increase materially the expense of maintaining such Plan above the level of the
expense incurred in respect thereof during the most recent fiscal year.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;<U>Section&nbsp;3.10(q)</U> of the Disclosure Schedule lists all &#147;nonqualified deferred
compensation plans&#148; (within the meaning of Section&nbsp;409A of the Code and any regulations promulgated
pursuant thereto) to which the Company or any of its Subsidiaries is a party. Each such
nonqualified deferred compensation plan to which the Company or such Subsidiary is a party complies
in all material respects with the requirements of paragraphs (2), (3)&nbsp;and (4)&nbsp;of Section&nbsp;409A(a) of
the Code by its terms and has been operated in accordance with such requirements. No event has
occurred that would be treated by Section&nbsp;409A(b) as a transfer of property for purposes of Section
83 of the Code. The exercise price of all Company Options is at least equal to the fair market
value of the Company Common Stock on the date such Company Options were granted and neither the
Company nor Parent has incurred or will incur any liability under Section&nbsp;409A of the Code upon the
vesting of any such Company Options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <U>Labor and Employment Matters. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;3.11(a) of the Disclosure Schedule lists the following information with respect to
each current employee (&#147;<U>Current Employee</U>&#148;) of the Company and all Subsidiaries of the
Company: (i)&nbsp;job title; (ii)&nbsp;whether such person is employed on a full-time or part-time basis;
and (iii)&nbsp;the entity by which the person is employed. The Company has previously furnished to
Parent a schedule which accurately sets forth the names of all Current Employees and, with respect
to each such Current Employee, information as to current salary, bonus, and rights with respect to
other employee benefits. Such employees of the Company and/or Subsidiaries are sufficient to staff
the operations of the Company and its Subsidiaries as currently defined by the Company&#146;s
management. Except as set forth in Section&nbsp;3.11(a) of the Disclosure Schedule, (i)&nbsp;to the
knowledge of the Company each Current Employee is legally entitled to work in the United States,
(ii)&nbsp;the employment of each Current Employee is terminable by the Company at will, (iii)&nbsp;there are
no pending or, to the knowledge of the Company, threatened Actions between the Company or any of
its Subsidiaries, on one hand, and any of the Current Employees, on the other hand, and (iv)
neither the Company nor any Subsidiary is a party to any collective bargaining agreement or similar
labor union contract applicable to Current Employees, nor, to the knowledge of the Company, are
there any activities or proceedings of any labor union to organize any such employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the Company and each of its Subsidiaries is in compliance in all material respects
with all applicable laws relating to the employment of labor, including those related to wages,
hours, immigration and naturalization, collective bargaining and the payment and withholding of
taxes and other sums as required by the appropriate Governmental Authority and have withheld and
paid to the appropriate Governmental Authority or are holding for payment not yet due to such
Governmental Authority all amounts required to be withheld from employees of the Company or such
Subsidiary, as the case may be, and is not liable for any material arrears of wages, taxes,
penalties or other sums for failure to comply with any of the foregoing. Each of the Company and
each of its Subsidiaries has paid in full to all employees all wages, salaries, commissions,
bonuses, benefits and other compensation due to or on behalf of such employees as of the date of
this Agreement, and there is no claim with respect to payment of wages, salary or overtime pay that
has been asserted or is now pending or, to the knowledge of the Company, threatened against the
Company or any Subsidiary before any Governmental Authority with respect to any persons currently
or formerly employed by the Company or such Subsidiary, as the case may be. Neither the Company nor
any Subsidiary is a party to, or
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">otherwise bound by, any consent decree with, or citation by, any Governmental Authority
relating to employees or employment practices. There is no charge or proceeding with respect to a
violation of any occupational safety or health standards that has been asserted in writing or is
now pending or, to the knowledge of the Company, threatened with respect to the Company or any of
its Subsidiaries. Except as set forth in Section&nbsp;3.11(a) of the Disclosure Schedule, there is no
charge of discrimination in employment or employment practices, for any reason, including, without
limitation, age, gender, race, religion or other legally protected category, which has been
asserted or is now pending or, to the Company&#146;s knowledge, threatened in writing to be filed before
the United States Equal Employment Opportunity Commission, or any other Governmental Authority in
any jurisdiction in which the Company has employed, employs or has been alleged to employ any
person, and there is no such charge that, if adversely determined, would individually or in the
aggregate, result in any material Liability to the Company or its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the knowledge of the Company, no employee or consultant of the Company or any of its
Subsidiaries is in material violation of (i)&nbsp;any contract or agreement with the Company or such
Subsidiary, as the case may be, or (ii)&nbsp;any restrictive covenant relating to the right of any such
employee or consultant to be employed by the Company or such Subsidiary or to use trade secrets or
proprietary information of others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company is not, nor has it ever been, a &#147;covered employer&#148; as that term is currently
defined by the federal Worker Adjustment and Retraining Notification Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;All directors, officers, management employees and technical and professional employees of
the Company and its Subsidiaries are under written obligation to the Company or such Subsidiary, as
the case may be, to maintain in confidence all confidential or proprietary information acquired by
them in the course of their employment and to assign to the Company all inventions made by them
within scope of their employment during such employment and for a reasonable period thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Company has delivered to Parent copies of all current employee manuals and handbooks
and other written policies relating to the employment of the Current Employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;To the knowledge of the Company, no Current Employee at the level of senior manager or
above (i)&nbsp;has given the Company written or formal notice of his intention to terminate his
employment with the Company (or its Subsidiaries), (ii)&nbsp;has notified in writing the Company that he
has received an offer to join a business that may be competitive with the Company&#146;s business, or
(iii)&nbsp;is a party to or is bound by any confidentiality agreement, noncompetition agreement or other
agreement (with any person) that may have a materially adverse affect on (A)&nbsp;the performance of
such employee of any of his or her duties or responsibilities as an employee of the Company (or its
Subsidiaries), or (B)&nbsp;the business or operations of the Company and its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;No labor organization or group of employees has filed any representation petition or made
any written or oral demand for recognition to the Company or any of its Subsidiaries; to the
knowledge of the Company, no union organizing efforts are underway or
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">threatened and no other question concerning representation exists; and no labor strike, work
stoppage, slowdown, or other material labor dispute has occurred, and none is underway or, to the
knowledge of the Company, threatened.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Neither the Company nor any of its Subsidiaries has any workers compensation liability,
experience or matter outside the Ordinary Course of Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Each current employee has entered into the Company&#146;s form Employee Proprietary Information
Agreement or similar agreement which contains a restrictive non-competition provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 &#091;<U>Intentionally Deleted</U>&#093;.<U> </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <U>Absence of Real Property; Title to Assets. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Neither the Company nor any Subsidiary owns or has ever owned real property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Section&nbsp;3.13(b) of the Disclosure Schedule lists each parcel of real property currently
leased or subleased by the Company or any of its Subsidiaries, with the name of the lessor and the
date of the lease, sublease, assignment of the lease, any guaranty given or leasing commissions
payable by the Company or any of its Subsidiaries in connection therewith and each amendment to any
of the foregoing (collectively, the &#147;<U>Lease Documents</U>&#148;). True and complete copies of all
Lease Documents have been delivered to Parent. All such current leases and subleases are in full
force and effect, are valid and effective in accordance with their respective terms, and there is
not, under any of such leases, any existing material default or event of default (or event which,
with notice or lapse of time, or both, would constitute a default) by the Company or any of its
Subsidiaries or, to the Company&#146;s knowledge, by the other party to such lease or sublease, or
person in the chain of title to such leased premises. The premises and facilities subject to the
leases and subleases comprising the Lease Documents are sufficient for the conduct of the
operations of the Company and its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the knowledge of the Company, there are no contractual or legal restrictions that
preclude or restrict the ability to use any real property leased by the Company or any Subsidiary
for the purposes for which it is currently being used. To the knowledge of the Company, there are
no material latent defects or material adverse physical conditions affecting the real property, and
improvements thereon, leased by the Company or any Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company, either directly or through a Subsidiary, has good and valid title to, or, in
the case of leased properties and assets, valid leasehold or subleasehold interests in, all of its
material properties and assets, tangible and intangible, real, personal and mixed, used or held for
use in its business, free and clear of any liens, except for such imperfections of title, if any,
that do not materially interfere with the present value of the subject property and liens for taxes
not yet due and payable.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <U>Intellectual Property</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;3.14(a) of the Disclosure Schedule sets forth a true and complete list of (i)&nbsp;all
Registered Intellectual Property, including the owner(s) of each such item of Registered
Intellectual Property and the jurisdictions in which each such item of Registered Intellectual
Property has been issued or registered or in which any application for such issuance and
registration has been filed, (ii)&nbsp;all (A)&nbsp;actions that are required to be taken by the Company or
its Subsidiaries within ninety (90)&nbsp;days of the date of this Agreement with respect to any of the
Registered Intellectual Property in order to avoid loss of such Registered Intellectual Property,
and (B)&nbsp;proceedings or actions before any governmental body (including the United States Patent and
Trademark Office or equivalent authority anywhere else in the world) with respect to any of the
Registered Intellectual Property, including without limitation any (x)&nbsp;interference, reissue,
reexamination or similar proceedings pertaining to the scope, validity and/or ownership of any
patents comprising Registered Intellectual Property, (y)&nbsp;trademark opposition or cancellation
proceedings pertaining to trademarks comprising Registered Intellectual Property, or (z)
proceedings relating to Internet domain names comprising Registered Intellectual Property, (iii)
any unregistered trademarks that are material to the business of the Company and its Subsidiaries,
and (iv)&nbsp;all Licenses (other than Licenses in respect of Shrink Wrap Software that have an
acquisition cost of less than $20,000).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;To the knowledge of the Company the conduct of the business of the Company and its
Subsidiaries as currently conducted does not conflict with, infringe upon, misappropriate or
otherwise violate the Intellectual Property rights of any third party. To the knowledge of the
Company, no Actions are pending or threatened in writing against the Company or any of its
Subsidiaries alleging any of the foregoing, nor has the Company or any Subsidiary received any
opinion of counsel that the operation of the business of the Company or any Subsidiary, as
previously or currently conducted, infringes or misappropriates any Intellectual Property rights of
any third party. To the knowledge of the Company, no person is engaging in any activity that
infringes upon, misappropriates or otherwise violates the Owned Intellectual Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company and its Subsidiaries own and have good and exclusive title to each item of
Owned Intellectual Property, which are, to the Company&#146;s knowledge after due inquiry, free and
clear of any liens and encumbrances, and subject to the licenses listed on Section&nbsp;3.18(a)(x) of
the Disclosure Schedule or carved out of the representation made in Section&nbsp;3.18(a)(xi) each of the
Company and each of its Subsidiaries has the valid right to use the Owned Intellectual Property and
Licensed Intellectual Property in the continued operation of its business as presently conducted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;All necessary registration, maintenance and renewal fees currently due in connection with
Registered Intellectual Property owned by the Company or any of its Subsidiaries have been made and
all necessary documents, recordations and certificates in connection with such Registered
Intellectual Property have been filed with the relevant governmental bodies in the United States or
those foreign jurisdictions in which applications for such Registered Intellectual Property have
been filed, as the case may be, for the purposes of maintaining such Registered Intellectual
Property. No Owned Intellectual Property or, to the knowledge of the Company, no Licensed
Intellectual Property, is subject to any outstanding
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">decree, order, injunction, judgment or ruling restricting the use of such Intellectual
Property or that would impair the validity or enforceability of such Intellectual Property. To the
knowledge of the Company, the Owned Intellectual Property and the Licensed Intellectual Property,
are subsisting, valid and enforceable, and have not been adjudged invalid or unenforceable in whole
or part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;To the knowledge of the Company the Owned Intellectual Property and the Licensed
Intellectual Property include all of the Intellectual Property material to the operation of the
business of the Company and its Subsidiaries, and to the Company&#146;s knowledge, there are no other
items of Intellectual Property that are material to the operation of the business of the Company
and its Subsidiaries as currently conducted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;To the knowledge of the Company, (i)&nbsp;each License is valid and enforceable, is binding on
all parties thereto, and is in full force and effect; (ii)&nbsp;no party to any License is in material
breach thereof or default thereunder; and (iii)&nbsp;subject to the procurement of any required consent,
neither the execution of this Agreement nor the consummation of the Merger shall adversely affect
any of the rights of the Company with respect to the Owned Intellectual Property or Licensed
Intellectual Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Each of the Company and each of its Subsidiaries have taken all commercially reasonable
steps to maintain the confidentiality of the trade secrets of the Company and other confidential
information included in the Owned Intellectual Property (&#147;<U>Confidential Information</U>&#148;). To
the knowledge of the Company, (i)&nbsp;there has been no misappropriation by any person of any
Confidential Information; (ii)&nbsp;no employee, former employee, independent contractor or agent of the
Company or any Subsidiary has misappropriated any trade secrets of any other person in the course
of performance as an employee, independent contractor or agent of the Company; and (iii)&nbsp;no
employee, former employee, independent contractor or agent of the Company is in default or breach
of any term of any employment agreement, nondisclosure agreement, assignment of invention agreement
or similar agreement or contract relating in any way to the protection, ownership, development, use
or transfer of Owned Intellectual Property or Confidential Information. Without limiting the
foregoing, each of the Company and each of its Subsidiaries have and enforce policies requiring
each employee and contractor involved in proprietary aspects of the business or who have or may
have access to Confidential Information to execute an agreement containing a nondisclosure
provision. All persons who have contributed to the creation, invention, modification or improvement
of any Company Owned Intellectual Property, in whole or in part, have signed written agreements
designed to ensure that all such Intellectual Property is assigned to and owned exclusively by the
Company or such Subsidiary, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Company employs commercially reasonable measures to ensure that the products and
services of the Company and its Subsidiaries are free of all viruses, worms, and other known
contaminants, and do not contain any errors or problems, that would disrupt the ordinary operation
of such products and services. Except as set forth on Section&nbsp;3.14(h) of the Disclosure Schedule,
the products and services of the Company and its Subsidiaries do not incorporate any software or
other material that has been licensed by the Company under a &#147;free software,&#148; &#147;open source
software&#148; or similar license or distribution terms.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <U>Taxes</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically disclosed in Section&nbsp;3.15 of the Disclosure Schedule:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each of the Company and each of its Subsidiaries (i)&nbsp;has filed all material Tax Returns
required to be filed by the Company or such Subsidiary prior to the Closing Date; and (ii)&nbsp;has
timely collected and paid or adequately reserved on its books and records, in all material
respects, all Taxes required to be collected and paid prior to the Closing Date (whether or not
shown on any material Tax Return) other than any such Taxes incurred in connection with the
transactions contemplated by this Agreement. Neither the Company nor any of its Subsidiaries
currently is the beneficiary of any extension of time within which to file any Tax Return. All Tax
Returns filed by the Company and its Subsidiaries prior to the Closing Date are true, correct and
complete in all material respects to the extent relevant to computing the amount of Taxes payable
to the applicable Governmental Authority for the period covered by the Tax Return. No deficiencies
for any material Tax have been proposed or assessed in writing against the Company or any of its
Subsidiaries. Neither the Company nor any of its Subsidiaries has received any notification from
the IRS or any other taxing authority regarding any material issues that (i)&nbsp;are currently pending
before the IRS or any other taxing agency or authority (including any sales or use taxing
authority) regarding the Company or such Subsidiary or (ii)&nbsp;have been raised by the IRS or other
taxing agency or authority and not yet finally resolved. To the knowledge of the Company, no Tax
Return of the Company or any of its Subsidiaries is under audit by the IRS or any other taxing
agency or authority and any such past audits (if any) have been completed and fully resolved to the
satisfaction of the applicable taxing agency or authority conducting such audit and all Taxes
finally determined as a result of such audit to be due from the Company or such Subsidiary have
been paid in full. Neither the Company nor any of its Subsidiaries has granted any waiver of any
statute of limitations with respect to, or any extension of a period for the assessment of, any Tax
that is still effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the Company and each of its Subsidiaries in all material respects has withheld and
paid (and until the Effective Time will withhold and pay) all material Taxes required to have been
withheld and paid (including withholding of taxes pursuant to Sections&nbsp;1441, 1442, 1445 and 1446 of
the Code or similar provisions under any foreign law) in connection with any amounts paid or owing
to any employee, independent contractor, creditor, Company Stockholder, holder of any equity
interests in such Subsidiary or other third party, and have timely filed all withholding Tax
Returns. Neither the Company nor any of its Subsidiaries (i)&nbsp;has material liability for the Taxes
of any other person (other than the Company or such Subsidiary) by reason of having joined in the
filing of a consolidated, combined or unitary Tax Return, by contract, by transferee liability or
otherwise; (ii)&nbsp;is a party to or bound by any Tax sharing, Tax indemnity, or Tax allocation
agreement; (iii)&nbsp;has filed any disclosures under Section&nbsp;6662 of the Code or comparable provisions
of state, local or foreign law to prevent the imposition of penalties with respect to any Tax
reporting position taken on any Tax Return; (iv)&nbsp;has consummated or participated in, and is
currently participating in any transaction which, to the knowledge of the Company, was or is a &#147;tax
shelter&#148; transaction as defined in Sections&nbsp;6662, 6011, 6012 or 6111 of the Code or the Treasury
Regulations promulgated thereunder; (v)&nbsp;has been a member of a consolidated, combined, unitary or
aggregate group of which the Company or such Subsidiary was not the ultimate parent corporation;
(vi)&nbsp;has been a &#147;distributing corporation&#148; or a &#147;controlled corporation&#148; in a distribution intended
to qualify under Section
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">355(e) of the Code within the past five years; (vii)&nbsp;has received any notice from a taxing
authority for a jurisdiction in which a Tax Return has not been filed asserting that the filing of
such a Tax Return may be required; (viii)&nbsp;has been a member of any entity taxable, to the knowledge
of Company, as a partnership for U.S. federal income tax purposes or the holder of a beneficial
interest in any trust for any period for which the statute of limitations for any Tax has not
expired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each of the Company and each of its Subsidiaries has not been nor to the knowledge of the
Company will the Company or such Subsidiary be required to include any item of income in, or
exclude any item of deduction from, taxable income for any taxable period (or portion thereof)
ending after the Merger as a result of any: (i)&nbsp;Code Section&nbsp;481 inclusion as a result of a change
in method of accounting for a taxable period ending on or prior to the Merger; (ii) &#147;closing
agreement&#148; as described in Section&nbsp;7121 of the Code (or any corresponding or similar provision of
state, local or foreign income Tax law) executed on or prior to the Merger; (iii)&nbsp;installment sale
or open transaction disposition made on or prior to the Merger; or (iv)&nbsp;prepaid amount received on
or prior to the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company is not, and has not been at any time during the past five years, a United
States real property holding corporation within the meaning of Section&nbsp;897 of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Neither Company nor any of its Subsidiaries is a party to any agreement, contract,
arrangement or plan that has resulted or could result (based on the current Code), separately or in
the aggregate, in the payment of (i)&nbsp;any ''excess parachute payment&#146;&#146; within the meaning of Code
&#167;280G (or any corresponding provision of applicable state, local, or non-U.S. Tax law) and (ii)&nbsp;any
amount that will not be fully deductible as a result of Code &#167;162(m) (or any corresponding
provision of applicable state, local, or non-U.S. Tax law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&#091;Intentionally Deleted&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&#091;Intentionally Deleted&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Neither Company nor any of its Subsidiaries is or has been a party to any ''reportable
transaction,&#146;&#146; as defined in Code &#167;6707A(c)(1) and Reg. &#167;1.6011-4(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <U>Environmental Matters. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as described in Section&nbsp;3.16 of the Disclosure Schedule, to the knowledge of the
Company, (a)&nbsp;each of the Company and each of its Subsidiaries is in material compliance with all
Environmental Laws; (b)&nbsp;no portion of any property owned, leased or occupied by the Company or any
of its Subsidiaries is Contaminated in any material respect; (c)&nbsp;neither the Company nor any of its
Subsidiaries has received from any Governmental Authority or any other person notice that it has
been named or may be named as a responsible or potentially responsible party under any
Environmental Law for any site Contaminated by Hazardous Substances: (d)&nbsp;neither the Company nor
any of its Subsidiaries has assumed the liability of any other person or entity for, nor agreed to
indemnify any other person or entity against, claims arising out of the release of Hazardous
Substances into the environment; (e)&nbsp;each of the Company and each of its Subsidiaries has all
permits, licenses and other authorizations required under any Environmental
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Law for the operation of its business (&#147;<U>Environmental Permits</U>&#148;); and (f)&nbsp;each of the
Company and each of its Subsidiaries is in material compliance with its Environmental Permits (if
any).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <U>No Rights Agreement. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Company nor any of its Subsidiaries has adopted any stockholders&#146; rights plan or
comparable arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 <U>Material Contracts. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;3.18(a) of the Disclosure Schedule lists the following types of contracts and
agreements to which the Company or any Subsidiary is a party (such contracts and agreements as are
required to be set forth in Section&nbsp;3.18(a) of the Disclosure Schedule being the &#147;<U>Material
Contracts</U>&#148;) (each reference to &#147;the Company&#148; in this Section&nbsp;3.18 shall refer to the Company
and each of its Subsidiaries, as the case may be):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;each contract and agreement, whether or not made in the Ordinary Course of Business, that
contemplates an exchange of consideration with a value of more than $15,000 annually (excluding any
employment contracts);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;all contracts and agreements involving any loan, guaranty, pledge, performance or
completion bond or indemnity or surety arrangement, including officer and/or director
indemnification agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;all joint venture, partnership, strategic alliance and business acquisition or
divestiture agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;any subscription agreements or similar agreements (excluding Company Warrants and options
issued pursuant to the Company Option Plan) providing for the sale of securities by the Company or
any of its Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;all agreements between the Company or any affiliate of the Company, on the one hand, and
the Company or any affiliate of the Company, on the other hand;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;all broker, distributor, dealer, manufacturer&#146;s representative, franchise, agency, sales
promotion, market research, marketing consulting and advertising contracts and agreements to which
the Company is a party and any other contract that compensates any person based on any sales by the
Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;all management contracts (excluding contracts for employment and indemnification
agreements described in Section&nbsp;3.18(ii) above) and contracts with consultants, under which the
Company has or may have any current material obligations;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;all contracts involving the payment of royalties or other amounts calculated based upon
the revenues or income of the Company or income or revenues related to any product of the Company
to which the Company is a party;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;all contracts and agreements with any Governmental Authority to which the Company is a
party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;all Licenses other than Licenses for Shrink Wrap Software that have an individual
acquisition cost of less than $20,000;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;all licenses, sublicenses and other contracts pursuant to which the Company or any of its
Subsidiaries has (A)&nbsp;granted any person any right or interest in any Intellectual Property or
Licensed Intellectual Property, or (B)&nbsp;agreed to any restriction on the right of the Company or any
of its Subsidiaries to use or enforce any Owned Intellectual Property or pursuant to which the
Company or any of its Subsidiaries agrees to encumber, transfer or sell rights in or with respect
to any Owned Intellectual Property;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;all contracts and agreements that (A)&nbsp;limit, or purport to limit, the ability of the
Company to compete in any line of business or with any person or in any business market, geographic
area or during any period of time, (B)&nbsp;grant exclusive sales, distribution, marketing or other
exclusive rights, rights of refusal, rights of first negotiation or similar rights and/or terms to
any person, (C)&nbsp;contain a provision of the type commonly referred to as a &#147;most favored nation&#148;
provision, or (D)&nbsp;otherwise limit the right of the Company or any of its Subsidiaries to sell,
distribute or manufacture any products or services or to purchase or otherwise obtain any software,
components, parts, subassemblies or services;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;any contract (other than the Company&#146;s standard employee proprietary information
agreements) providing for the development of any product, product candidate, device, component,
technology or Intellectual Property, independently or jointly, by or for the Company or any
Subsidiary, including, but not limited to, any proof-of-concept, collaboration, development or
co-development agreement, and any contract to license or authorize any third party to manufacture
any of the foregoing;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;all agreements with the customers and suppliers identified in Section&nbsp;3.19 of the
Disclosure Schedule, along with any agreements relating to warehousing of the Company&#146;s inventory;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;all material contracts or arrangements that result in any person or entity holding a
power of attorney from the Company that relates to the Company or its businesses; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;any other contracts and agreements not otherwise listed in (1)&nbsp;through (xv)&nbsp;of this
Section&nbsp;3.18(a), the termination of which by the contracting party would have a Material Adverse
Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)(i) Each Material Contract is a legal, valid and binding agreement of the Company; (ii)&nbsp;the
Company has not received any claim of material default under or cancellation of any Material
Contract, and the Company is not, to the knowledge of the Company, after due inquiry, in any
material respect, in breach or violation of, or default under, any Material Contract; and (iii)&nbsp;to
the Company&#146;s knowledge, no other party is, in any material respect, in breach or violation of, or
default under, any Material Contract. The Company has furnished or made
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">available to Parent true and complete copies of all Material Contracts (or the forms thereof),
including any material amendments thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 <U>Customers and Suppliers. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.19 of the Disclosure Schedule sets forth a true and complete list of the Company&#146;s
and its Subsidiaries&#146; top ten (10)&nbsp;customers and top ten (10)&nbsp;suppliers (based on the revenue from
such customer, or purchases from such supplier, as the case may be, during the 12-month period
ended September&nbsp;30, 2009). As of the date of this Agreement, none of the Company&#146;s and its
Subsidiaries&#146; customers listed in Section&nbsp;3.19 of the Disclosure Schedule and no material supplier
of the Company or any of its Subsidiaries listed in Section&nbsp;3.19 of the Disclosure Schedule, (i)
has cancelled or otherwise terminated any contract with the Company or such Subsidiary prior to the
expiration of the contract term, or (ii)&nbsp;to the Company&#146;s knowledge, has threatened, or indicated
its intention, to cancel or otherwise terminate its relationship with the Company or such
Subsidiary or to reduce substantially its purchase from or sale to the Company or such Subsidiary
of any products, equipment, goods or services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 <U>Inventory. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All inventory of the Company and its Subsidiaries, including consigned inventory, consists of
a quality and quantity usable and salable in the Ordinary Course of Business. All inventory shall
be valued in accordance with GAAP, subject to the GAAP Exceptions. Section&nbsp;3.20 of the Disclosure
Schedule sets forth the location of all items of the Company&#146;s and each of its Subsidiaries&#146;
inventory, including consigned inventory as of the date of this Agreement and the Company&#146;s or such
Subsidiary&#146;s procedures for tracking and controlling consigned inventory, and such procedures are
adequate for such purposes and have been followed by the Company and such Subsidiary consistent
with past practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 <U>Company Products and Services. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each product manufactured, sold, or leased by the Company or any of its Subsidiaries on or
prior to the Closing Date has been, to the knowledge of the Company, in conformity in all material
respects with all applicable contractual commitments, any applicable Law and all express and
implied warranties, and, to the knowledge of the Company, each of the Company and each Subsidiary
has no material Liabilities for replacement or repair thereof or other damages in connection
therewith. Each of the Company and each of its Subsidiaries has not been required to file any
notice or other report with, or provide information to, any product safety agency, commission,
board or other Governmental Authority concerning actual or potential hazards with respect to any
product manufactured by the Company or such Subsidiary other than routine filings required of all
manufacturers similarly situated. To the knowledge of the Company, neither the Company nor any of
its Subsidiaries has any material Liability arising out of any injury to persons or property as a
result of the ownership, possession or use of any product manufactured, sold, leased or delivered
by the Company or such Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Since August&nbsp;1, 2007, there have been no (i)&nbsp;recalls related to any product manufactured
sold, leased or delivered by the Company, or (ii)&nbsp;withdrawals of any product manufactured sold,
leased or delivered by the Company due to quality or safety issues.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22 <U>Insurance. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Company and each Subsidiary of the Company maintains insurance policies of the
types and for the amounts that are usual and customary in the context of the businesses and
operations in which the Company and such Subsidiary is engaged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23 <U>Certain Business Practices. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the Company or any of its Subsidiaries or, to the Company&#146;s knowledge, any directors
or officers, agents or employees of the Company or such Subsidiary, has (i)&nbsp;used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to political
activity; (ii)&nbsp;made any unlawful payment to foreign or domestic government officials or employees
or to foreign or domestic political parties or campaigns or violated any provision of the Foreign
Corrupt Practices Act of 1977, as amended; or (iii)&nbsp;made any payment in the nature of criminal
bribery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24 <U>Full Disclosure</U>. None of the representations and warranties of the Company set
forth in this Agreement, in any of the certificates, schedules, lists, documents, exhibits or other
instruments delivered, or to be delivered, to Parent as contemplated by any provision hereof, to
the knowledge of the Company, contains any untrue statement of material fact or omits to state a
material fact necessary to make the statements contained herein or therein, in light of the
circumstances under which they were made, not misleading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25 <U>Brokers. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for fees to be paid to Piper Jaffray pursuant to that certain engagement letter between
the NetStreams, L.L.C. and Piper Jaffray &#038; Co. dated January&nbsp;23, 2009, as amended by the Piper
Jaffray Agreement, no broker, finder or investment banker is entitled to any brokerage, finder&#146;s or
other fee or commission in connection with this Agreement or the Merger based upon arrangements
made by or, to the knowledge of the Company, on behalf of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.26 <U>Merger Consideration Certificate</U>. The provisions of the Merger Consideration
Certificate conform to, are in compliance with and accurately reflect the provisions of the
Certificate of Incorporation and the Company Management Incentive Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.27 <U>Director and Officer Indemnification</U>. The Company has not, since October&nbsp;31,
2004, received any claim from any officer or director pursuant to or in respect of any
indemnification provisions under the Company&#146;s Certificate of Incorporation or Bylaws (as such were
in effect during such period) or pursuant to any written indemnification agreement between the
Company and any officer or director, no such claim is currently outstanding, and to the knowledge
of the Company, there are no circumstances that have occurred since October&nbsp;31, 2004 which could
give rise to such a claim.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE IV</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an inducement to the Company to enter into this Agreement, Parent and Merger Sub hereby,
jointly and severally, represent and warrant to the Company that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.01 <U>Corporate Organization. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Parent and Merger Sub is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation and has the requisite corporate
power and authority and all necessary governmental approvals to own, lease and operate its
properties and to carry on its business as it is now being conducted, except where the failure to
be so organized, existing or in good standing or to have such power, authority and governmental
approvals would not, individually or in the aggregate, prevent or delay consummation of the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.02 <U>Authority Relative to This Agreement. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Parent and Merger Sub has all necessary corporate power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to consummate the Merger. The
execution and delivery of this Agreement by Parent and Merger Sub and the consummation by Parent
and Merger Sub of the Merger have been duly and validly authorized by all necessary corporate
action on the part of Parent and Merger Sub, and no other corporate proceedings on the part of
Parent or Merger Sub are necessary to authorize this Agreement or to consummate the Merger (other
than the filing and recordation of appropriate merger documents as required by DGCL). This
Agreement has been duly and validly executed and delivered by Parent and Merger Sub and, assuming
due authorization, execution and delivery by the Company, constitutes the legal, valid and binding
obligation of each of Parent and Merger Sub enforceable against each of Parent and Merger Sub in
accordance with its terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.03 <U>No Conflict; Required Filings and Consents. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The execution and delivery of this Agreement by Parent and Merger Sub do not, and the
performance of this Agreement by Parent and Merger Sub will not, and the consummation of the Merger
by Parent and Merger Sub will not, (i)&nbsp;conflict with or violate the certificate of incorporation or
bylaws of either Parent or Merger Sub, (ii)&nbsp;assuming that all consents, approvals and other
authorizations described in Section&nbsp;4.03(b) have been obtained and that all filings and other
actions described in Section&nbsp;4.03(b) have been made or taken, conflict with or violate any Law
applicable to Parent or Merger Sub or by which any property or asset of either of them is bound or
affected, or (iii)&nbsp;result in any breach of, or constitute a default (or an event which, with notice
or lapse of time or both, would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the creation of a lien or
other encumbrance on any property or asset of Parent or Merger Sub pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or
obligation to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any
property or asset of either of them is bound or affected, except, with
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respect to clauses (ii)&nbsp;and (iii), for any such conflicts, violations, breaches, defaults or
other occurrences which would not, individually or in the aggregate, prevent or materially delay
consummation of the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution and delivery of this Agreement by Parent and Merger Sub do not, and the
performance of this Agreement by Parent and Merger Sub will not, require any consent, approval,
authorization or permit of, or filing with or notification to, any Governmental Authority, except
for (i)&nbsp;filings under the Exchange Act, (ii)&nbsp;the filing and recordation of appropriate merger
documents as required by DGCL, and (iii)&nbsp;where the failure to obtain such consents, approvals,
authorizations or permits, or to make such filings or notifications, would not prevent or
materially delay consummation of the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.04 <U>Brokers. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No broker, finder or investment banker is entitled to any brokerage, finder&#146;s or other fee or
commission in connection with the Merger based upon arrangements made by or on behalf of Parent or
Merger Sub, other than any broker, finder or investment banker the fees of which will be payable
solely by Parent or Merger Sub.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE V</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">ADDITIONAL AGREEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.01 <U>Stockholders&#146; Meeting or Written Consent and Approval of the Company Stockholder</U>.
The Company shall take all action necessary in accordance with this Agreement, the Certificate of
Incorporation and Bylaws of the Company and DGCL prior to the Closing Date or on and as of the
Closing Date immediately prior to the Effective Time or otherwise prior to the Effective Time, as
the case may be, to call, notice, convene, hold and conduct a meeting of the Company&#146;s stockholders
(the &#147;<U>Stockholders&#146; Meeting</U>&#148;) for the purpose of voting upon approval of the Merger and
adoption of this Agreement or otherwise to secure the written consent or approval of the requisite
stockholders of the Company in lieu of a meeting approving the Merger and adopting this Agreement
(each, a &#147;<U>Stockholder Consent</U>&#148;) and required in order to effectuate each of the
transactions contemplated by this Agreement.<U> </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.02 <U>Notification of Certain Matters. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall give prompt notice to Parent, and Parent shall give prompt notice to the
Company, of (a)&nbsp;the occurrence, or non-occurrence, of any event the occurrence, or non-occurrence,
of which reasonably could be expected to cause any representation or warranty contained in this
Agreement and made by such person to be untrue or inaccurate in any material respect, (b)&nbsp;any
failure of the Company, Parent or Merger Sub, as the case may be, to comply in all material
respects with or satisfy any covenant or agreement to be complied with or satisfied by it hereunder
and (c)&nbsp;any other material development relating to the business, financial condition or results of
operations of the Company; <U>provided</U>, <U>however</U>, that the delivery of any notice
pursuant to this Section&nbsp;5.02 shall not limit or otherwise affect the remedies available hereunder
to the party receiving such notice under <U>Article&nbsp;VI</U> or Section&nbsp;8.02.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.03 <U>Further Action; Reasonable Efforts. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No party will take any action or omit to take any action that would cause the
representations and warranties contained in Article&nbsp;III or Article&nbsp;IV, as the case may be, to be
untrue on and as of the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon the terms and subject to the conditions of this Agreement, each of the parties hereto
shall use its reasonable efforts to take, or cause to be taken, all appropriate action, and to do,
or cause to be done, all things necessary, proper or advisable under applicable Laws to consummate
and make effective the Merger. In case, at any time after the Effective Time, any further action is
necessary or desirable to carry out the purposes of this Agreement, the proper officers and
directors of each party to this Agreement shall use their reasonable efforts to take all such
action.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.04 <U>Public Announcements. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent and the Company shall consult with each other before issuing any press release or
otherwise making any public statements with respect to this Agreement or the Merger and shall not
issue any such press release or make any such public statement prior to such consultation, except
as may be required by Law or the rules or regulations of any United States or non-United States
securities exchange. The parties have agreed upon the form of a joint press release announcing the
execution of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.05 <U>FIRPTA</U>. The Company agrees to provide to Parent at Closing a certificate (in a
form reasonably satisfactory to Parent and Merger Sub) meeting the requirements of Treasury
regulation section 1.1445-2(b)(2).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06 &#091;Intentionally deleted&#093;.<U> </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.07 <U>Certain Tax Matters. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Income Tax Straddle Periods</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&#091;Intentionally deleted&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Parent shall cause the Company and each Subsidiary to prepare and timely file all Tax
Returns required to be filed after the Closing Date. Such Tax Returns shall be prepared and filed
timely and on a basis consistent with procedures, accounting methods, and practices of the Company
and its Subsidiaries in effect as of the date of this Agreement with respect to the treatment of
specific items on such Tax Returns unless otherwise required by applicable Law. Parent shall not,
and shall not allow the Company or any Subsidiary, to file any amended Tax Return relating to any
period (or portion thereof) ending on before the Closing Date without the prior written permission
of the Company Stockholder (which shall not be unreasonably withheld, delayed, or conditioned).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &#091;Intentionally deleted&#093;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;If any Governmental Authority issues to the Company or any Subsidiary (i)&nbsp;a written
notice of its intent to audit, examine or conduct another proceeding with respect to Taxes or Tax
Returns of the Company or any Subsidiary for periods ending prior to the Closing Date or (ii)&nbsp;a
written notice of deficiency, a written notice of reassessment, a written proposed adjustment, a
written assertion of claim or written demand concerning Taxes or Tax Returns for periods ending on
or prior to the Closing Date, Parent shall notify the Company Stockholder of its receipt of such
communication from the Governmental Authority within ten (10)&nbsp;business days of receipt
(collectively, a &#147;<U>Tax Claim</U>&#148;). Parent shall not allow the Company or any Subsidiary to
settle or otherwise resolve any Tax Claim with respect to which the Company Stockholder could have
a liability for Taxes under this Agreement without the prior written approval of the Company
Stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Cooperation on Tax Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Parent, the Company and its Subsidiaries, and the Company Stockholder shall cooperate
fully, as and to the extent reasonably requested by the other Party, in connection with the filing
of Tax Returns pursuant to this &#167;5.07 and any audit, litigation or other proceeding with respect to
Taxes. Such cooperation shall include the retention and (upon the other party&#146;s request) the
provision of records and information that are reasonably relevant to any such audit, litigation or
other proceeding and making employees available on a mutually convenient basis to provide
additional information and explanation of any material provided hereunder. Company and its
Subsidiaries and the Company Stockholder agree (A)&nbsp;to retain all books and records with respect to
Tax matters pertinent to the Company and its Subsidiaries relating to any taxable period beginning
before the Closing Date until the expiration of the statute of limitations (and, to the extent
notified by Parent or the Company Stockholder, any extensions thereof) of the respective taxable
periods, and to abide by all record retention agreements entered into with any taxing authority,
and (B)&nbsp;to give the other party reasonable written notice prior to transferring, destroying or
discarding any such books and records and, if the other party so requests, the Company and its
Subsidiaries or the Company Stockholder, as the case may be, shall allow the other Party to take
possession of such books and records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Parent and the Company Stockholder further agree, upon request, to use their reasonable
best efforts to obtain any certificate or other document from any governmental authority or any
other person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed
(including, but not limited to, with respect to the transactions contemplated hereby).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.08 <U>Directors&#146; and Officers&#146; Indemnification. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Merger is consummated, then until the first anniversary of the Effective Time, the
Parent will cause the Surviving Corporation to fulfill and honor in all respects the obligations of
the Company to its directors and officers as of immediately prior to the Effective Time (the
&#147;<U>Company Indemnified Officers and Directors</U>&#148;) pursuant to any indemnification provisions
under the Company&#146;s Certificate of Incorporation or Bylaws as in effect on the Agreement Date with
respect to claims arising out of matters occurring prior to the Effective Time.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Until the first anniversary of the Effective Time, the Parent shall cause the Surviving
Corporation not to amend, subject to applicable Law, the Certificate of Incorporation or Bylaws of
the Company in a manner that would eliminate, reduce or terminate the benefit of the
indemnification provisions in favor of the Company&#146;s directors and officers, as contained in the
Certificate of Incorporation and Bylaws as in effect as of the Agreement Date, for actions or
omissions on the part of such directors and officers prior to the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The provisions of this Section&nbsp;5.08 are intended to be for the benefit of, and shall be
enforceable by, the Company Indemnified Officers and Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.09 <U>Conduct of Business</U>. During the period from the date of this Agreement and
continuing until the Effective Time, the Company agrees that (except as expressly contemplated or
permitted by this Agreement or as required by applicable Law), without the prior written consent of
Parent, which shall not be unreasonably withheld or delayed (each reference to &#147;the Company&#148; in
this Section&nbsp;5.09 shall refer to the Company and each of its Subsidiaries, as the case may be):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Ordinary Course of Business</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Company shall carry on in the Ordinary Course of Business in all material respects, in
substantially the same manner as heretofore conducted, and shall use its commercially reasonable
efforts to keep available the services of its present officers and key employees, preserve intact
its present lines of business, maintain its rights and franchises and preserve its relationships
with customers, suppliers and others having business dealings with it to the end that its ongoing
businesses shall not be impaired in any material respect at the Effective Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Company shall not, (A)&nbsp;enter into any new material line of business or (B)&nbsp;incur or
commit to any capital expenditures or any obligations or liabilities in connection therewith other
than capital expenditures and obligations or liabilities in connection therewith incurred or
committed to in the Ordinary Course of Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Dividends; Changes in Share Capital</U>. The Company shall not, and shall not propose
to, (1)&nbsp;declare or pay any dividends on or make other distributions in respect of any of its
capital shares, (2)&nbsp;split, combine or reclassify any of its capital shares or issue or authorize or
propose the issuance of any other securities in respect of, in lieu of or in substitution for, its
capital shares or (3)&nbsp;repurchase, redeem or otherwise acquire any of its capital shares or any
securities convertible into or exercisable for any of its capital shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Issuance of Securities</U>. The Company shall not, issue, deliver, sell, pledge or
dispose of, or authorize or propose the issuance, delivery, sale, pledge or disposition of, any of
its capital shares of any class, any debt or any securities convertible into or exercisable for, or
any rights, warrants, calls or options to acquire, any such shares or debt, or enter into any
commitment, arrangement, undertaking or agreement with respect to any of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Governing Documents</U>. Except to the extent required to comply with its obligations
hereunder or with applicable Law, the Company shall not amend or propose to so amend its
Certificate of Incorporation or By-Laws.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>No Acquisitions</U>. The Company shall not acquire or agree to acquire by merger or
consolidation, or by purchasing a substantial equity interest in or a substantial portion of the
assets of, or by any other manner, any business or any corporation, partnership, association or
other business organization or division thereof or otherwise acquire or agree to acquire any
assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>No Dispositions</U>. The Company shall not sell, lease or otherwise dispose of, or
agree to sell, lease or otherwise dispose of, any of its assets, other than in the Ordinary Course
of Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Investments; Indebtedness</U>. The Company shall not (1)&nbsp;enter into any material
joint venture, partnership or other similar arrangement, (2)&nbsp;make any loans, advances or capital
contributions to, or investments in, any other person, other than any capital contributions to or
other obligations in respect of any joint ventures of the Company pursuant to an agreement in
existence on or prior to the date of this Agreement, or (3)&nbsp;incur indebtedness or guarantee any
indebtedness for borrowed money of another person (in each case other than in the Ordinary Course
of Business), enter into any &#147;keep well&#148; or other agreement to maintain any financial statement
condition of another person or enter into any arrangement having the economic effect of any of the
foregoing, other than refinancings of pre-existing indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Compensation</U>. The Company shall not: (A)&nbsp;enter into, adopt, amend, create new
benefit plans, (B)&nbsp;terminate any benefit plan, (C)&nbsp;increase the compensation or benefits payable to
any current or former employee, officer, director, or consultant of the Company (including any such
increase pursuant to any bonus, pension, equity compensation, profit sharing or other plan or
commitment) or pay any amounts under such arrangements or benefit plans (including severance
arrangements) not otherwise due, (D)&nbsp;enter into any collective bargaining agreement or similar
agreement with respect to the Company or any employees thereof, (E)&nbsp;make contributions to
tax-qualified defined benefit pension plans other than to the extent required by law or modify the
actuarial assumptions in effect with respect to any such plan or (F)&nbsp;provide any funding for any
rabbi trust or similar arrangement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Cash Management</U>. The Company shall conduct its financial operations in the
Ordinary Course of Business in all material respects, in the same manner as heretofore conducted,
including, by way of example and not limitation, the timely and orderly collection of all accounts
receivable and other amounts owed to the Company. The Company shall make no expenditures in excess
of $5,000 without receiving prior written approval from Parent after prior delivery to Parent of
written request with all supporting documentation to support such request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Accounting Methods</U>. The Company shall not change in any material respect its
methods of financial accounting in effect at March&nbsp;31, 2009. The Company shall not make any
material Tax election.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Non-Compete</U>. The Company shall not, enter into any agreement that limits (other
than in an insignificant manner) the ability of the Company, or would limit (other than in an
insignificant manner) the ability of Parent or any Subsidiary of Parent after the Effective Time,
to compete in or conduct any line of business or compete with any Person in any geographic area or
during any period, it being understood that any restriction that by its terms
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">does not extend more than two months beyond the Effective Time and is not applicable to the
business of Parent at any time shall be deemed to be insignificant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Materials Contracts</U>. The Company shall not (1)&nbsp;modify, amend or terminate any
Material Contract, (2)&nbsp;waive any material rights under any Material Contract or (3)&nbsp;enter into any
agreement that would constitute a Material Contract if entered into as of the date of this
Agreement other than (with respect to clauses (1)&nbsp;and (3)) in the Ordinary Course of Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <U>Claims; Litigation</U>. The Company shall not, settle or compromise any claim,
demand, lawsuit or state or federal regulatory proceeding, whether now pending or hereafter made or
brought, or waive, release or assign any rights or claims, in any such case in an aggregate amount
in excess of $10,000, and the Company shall notify Parent in writing regarding any pending
litigation hereafter made or brought against the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <U>Intellectual Property</U>. The Company shall not, take any action which would limit
in any material respect the Company&#146;s freedom to license, cross-license or otherwise dispose of any
material Intellectual Property to which the Company has rights as of the date of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <U>Conversion of Austin Ventures VIII, L.P. Convertible Notes</U>. The Company
Stockholder shall, immediately prior to and effective at Closing, convert the Austin Ventures VIII.
L.P. Convertible Notes into Company Series&nbsp;B Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <U>Dissolution of NetStreams International, Inc</U>. The Company shall, prior to and as
a condition of Closing, obtain all necessary approvals to file, and shall file, a certificate of
dissolution with the Division of Corporations in the Delaware Department of State with respect to
NetStreams International, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <U>&#091;Intentionally Deleted&#093;</U>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE VI</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CONDITIONS TO THE MERGER

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.01 <U>Conditions to the Merger. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Company&#146;s Conditions</U>. The Company&#146;s obligations to consummate the Merger and take
the other actions required to be taken by the Company at the Closing are subject to the fulfillment
or satisfaction as of the Closing, of each of the following conditions (it being understood that
(I)&nbsp;any one or more of the following conditions may be waived by the Company in a writing signed on
behalf of the Company and (II)&nbsp;by proceeding with the Closing, the Company shall be deemed to have
waived any of such conditions that remain unfulfilled or unsatisfied):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Accuracy of Representations and Warranties</U>. The representations and warranties of
Parent and Merger Sub set forth in <U>Article&nbsp;IV</U> (a)&nbsp;that are qualified as to materiality
shall be true and correct and (b)&nbsp;that are not qualified as to materiality shall be true
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and correct in all material respects, in each case on and as of the Closing (except for any
such representations or warranties that by their terms speak only as of a specific date or dates,
in which case such representations and warranties that are qualified as to materiality shall be
true and correct, and such representations and warranties that are not qualified as to materiality
shall be true and correct in all material respects, on and as of such specified date or dates),
except to the extent the failure of such representations and warranties to be so true and correct
does not have a material adverse effect on Parent&#146;s or Merger Sub&#146;s ability to consummate the
Merger or to perform their respective obligations under this Agreement and at the Closing the
Company shall have received a certificate to such effect executed by an officer of Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Covenants</U>. Parent shall have performed and complied in all material respects with
all of its covenants contained in this Agreement on or before the Closing (to the extent that such
covenants require performance by Parent on or before the Closing), except to the extent the failure
to so perform and comply with such covenants does not have a material adverse effect on Parent&#146;s
ability to consummate the Merger or to perform its obligations under this Agreement and at the
Closing the Company shall have received a certificate to such effect executed by an officer of
Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U>Compliance with Law; No Legal Restraints; No Litigation</U>. There shall not be
issued, enacted or adopted, or threatened in writing by any Governmental Authority, any order,
decree, temporary, preliminary or permanent injunction, legislative enactment, statute, regulation,
action or proceeding, or any judgment or ruling by any Governmental Authority that prohibits or
renders illegal or imposes limitations on the Merger or any other material transaction contemplated
by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U>Government Consents</U>. There shall have been obtained at or prior to the Closing
such permits or authorizations, and there shall have been taken all such other actions by any
Governmental Authority or other regulatory authority having jurisdiction over the parties and the
actions herein proposed to be taken, as may be required to lawfully consummate the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>Escrow Agreement</U>. The Escrow Agreement shall have been executed and delivered by
Parent, the Escrow Agent, the Company Stockholder and the Incentive Plan Representative.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;<U>Approval of Company&#146;s Stockholders</U>. The Merger and this Agreement shall have been
duly and validly approved and adopted, as required by DGCL and the Company&#146;s Certificate of
Incorporation and Bylaws, each as in effect on the date of such approval and adoption, by the
requisite vote or written consent of the Company&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <U>Square 1 Bank Joinder Agreement</U>. Square 1 Bank shall executed and delivered to
Parent a Joinder Agreement, in form and substance satisfactory to Parent, in its sole discretion,
with respect to the Square 1 Loan and the current and future rights of the Company and/or Parent to
extend payment terms, refinance or otherwise modify the terms of the Square 1 Loan, and Square 1
Bank shall have consented in writing to the transactions contemplated by this Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Parent&#146;s and Merger Sub&#146;s Conditions</U>. Parent&#146;s and Merger Sub&#146;s obligations to
consummate the Merger and take the other actions required to be taken by them at the Closing are
subject to the fulfillment or satisfaction, as of the Closing, of each of the following conditions
(it being understood that (a)&nbsp;any one or more of the following conditions may be waived by Parent
and Merger Sub in a writing signed by Parent and (b)&nbsp;by proceeding with the Closing, Parent and
Merger Sub shall be deemed to have waived any of such conditions that remains unfulfilled or
unsatisfied):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Accuracy of Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;The representations and warranties of the Company set forth in Article&nbsp;III (other than in
Section&nbsp;3.03 and Section&nbsp;3.04) shall be true and correct in all material respects (except for any
statements in a representation or warranty that expressly include a standard of materiality, which
statements shall be true and correct in all respects giving effect to such standard) as of the
Closing, except that those representations and warranties which address matters only as of a
particular date shall remain true and correct in all material respects (except for any statements
in a representation or warranty that expressly include a standard of materiality, which statements
shall be true and correct in all respects giving effect to such standard) as of such date (it being
understood that, for purposes of determining the accuracy of such representations and warranties,
any update of, or modification to, the Disclosure Schedule made or purported to have been made
after the execution of this Agreement shall be given effect only if accepted in writing by Parent).
Parent shall have received a certificate with respect to the foregoing signed on behalf of the
Company by the Company&#146;s President or Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The representations and warranties of the Company set forth in Section&nbsp;3.03 and Section
3.04 shall be true and correct at and as of the Closing, and, at the Closing, Parent shall have
received a certificate to such effect executed by the Chief Executive Officer of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Covenants</U>. The Company shall have performed and complied in all material respects
with all of its covenants contained in this Agreement at or before the Closing (to the extent that
such covenants require performance by the Company at or before the Closing), and at the Closing
Parent shall have received a certificate to such effect executed by the Company&#146;s President or
Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U>Compliance with Law; No Legal Restraints; No Litigation</U>. There shall not be
issued, enacted or adopted, by any Governmental Authority, any order, decree, temporary,
preliminary or permanent injunction, legislative enactment, statute, regulation, proceeding,
judgment or ruling by any Governmental Authority that prohibits or renders illegal or imposes
material limitations on: (a)&nbsp;the Merger or any other material transaction contemplated by this
Agreement; or (b)&nbsp;Parent&#146;s right (or the right of any Subsidiary of Parent) to own, retain, use or
operate any of its products, services, properties or assets (including equity, properties or assets
of the Company) or conduct the Company Business as a result of the Merger or seeking a disposition
or divestiture of any such properties or assets. No litigation or proceeding shall be pending for
the purpose of enjoining or preventing the consummation of any of the transactions contemplated by
this Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U>Opinion of Company&#146;s Legal Counsel</U>. Parent shall have received from Wilson
Sonsini Goodrich and Rosati, legal counsel to the Company, an opinion of counsel in substantially
the form set forth in <U>Exhibit&nbsp;C</U> to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>Company Approvals</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;The Board shall have recommended to the Company&#146;s stockholders that such stockholders vote
in favor of the approval of the Merger and adoption of this Agreement at the Stockholders&#146; Meeting
or deliver a written consent in lieu of a meeting approving the Merger and adopting this Agreement.
The Board shall not have withdrawn, amended or modified, or proposed or resolved to withdraw, amend
or modify, in a manner adverse to Parent, the recommendation of the Board that the Company
Stockholder vote or deliver a written consent in favor of and approve the Merger and adopt this
Agreement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Merger and this Agreement shall have been duly and validly approved and adopted, as
required by DGCL and the Company&#146;s Certificate of Incorporation and Bylaws, each as in effect on
the date of such approval and adoption, by the requisite written consent or vote of the Company
Stockholder in respect of all Company Capital Stock owned by it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;<U>Resignations of Directors and Officers</U>. Each person holding the position of a
director or officer of the Company immediately prior to the Effective Time, shall have resigned
from such positions in writing effective as of the Effective Time, pursuant to forms of resignation
in form and substance satisfactory to Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;<U>Company Good Standing Certificate</U>. Parent shall have received a certificate from
the State of Delaware certifying that the Company is validly existing and in good standing in such
jurisdiction, and that all applicable franchise taxes and fees of the Company have been paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;<U>Officers&#146; Certificate</U>. Parent shall have received a certificate dated as of the
Closing Date and executed on behalf of the Company by its Chief Executive Officer and its
Secretary, (a)&nbsp;certifying as to the (i)&nbsp;Certificate of Incorporation, (ii)&nbsp;Bylaws, (c)&nbsp;Board
resolutions approving the Merger and adopting this Agreement, (d)&nbsp;Company Stockholder&#146;s resolution
approving the Merger and adopting this Agreement, and (e)&nbsp;Board resolutions authorizing the
termination of the Company Options and the Company Option Plan as of the day prior to the Closing
Date, and (b)&nbsp;providing a representation and warranty to the Parent that all Company Options have
been properly terminated in accordance with their terms and, in the case of stock options, in
accordance with the provisions of the Company Option Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;<U>Escrow Agreement</U>. The Escrow Agreement shall have been executed and delivered by
Parent, the Escrow Agent, the Company Stockholder and the Incentive Plan Representative.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <U>Incentive Plan Participant Agreements</U>. Each of the Incentive Plan Participants
shall have executed and delivered an Incentive Plan Participant Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;<U>Merger Consideration Certificate</U>. The Company shall have delivered a
duly-executed Merger Consideration Certificate to Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;<U>Management Incentive Plan Acknowledgment</U>. Parent shall have also received, the
delivery of which is effective upon Parent&#146;s payment as contemplated by Section&nbsp;7.02(c), a
Management Incentive Plan Acknowledgement, Release and Indemnification Agreement in the form
attached hereto as Exhibit&nbsp;D, executed by each Incentive Plan Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;<U>Dissolution of NetStreams International, Inc</U>. The Company shall have delivered
to Parent evidence satisfactory to Parent that the dissolution of NetStreams International, Inc.
has been effected, along with a certificate of the Company, signed by the Company&#146;s chief executive
officer and chief financial officer, that any and all indebtedness of NetStreams International,
Inc. has been paid prior to Closing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;<U>Termination of Employees</U>. The Company shall have terminated, or caused to be
terminated, the employment of those persons designated in a writing to be furnished by Parent to
Company prior to Closing, and the Company shall have delivered to Parent releases from each such
terminated employee, in form and substance acceptable to Parent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;<U>Tax Certificate</U>. The Company shall have delivered to Parent the certificate
described in Section&nbsp;5.05 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;<U>Piper Jaffray Agreement</U>. The Company shall have delivered to the Parent a copy
of the fully executed Piper Jaffray Agreement, providing for such terms and conditions as are
acceptable to Parent, in its sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)&nbsp;<U>Transaction Expenses</U>. The Company shall have provided to the Parent an updated
<U>Schedule&nbsp;7.02(d)</U>, in form and content acceptable to Parent, reflecting Transaction Expenses
as of the Effective Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)&nbsp;<U>Releases from Company Stockholder and Herman Cardenas</U>. The Company shall have
delivered, on behalf of the Company Stockholder and Herman Cardenas, releases, in form and
substance acceptable to Parent, of all claims against the Company and its officers and directors,
in their capacities as such, excepting any claims that may arise pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)&nbsp;<U>Company Stockholder Stock Certificates</U>. The Company Stockholder shall have
delivered for cancellation all certificates representing stock of the Company held by it (save and
except in respect of the Series&nbsp;B Stock to be issued to the Company Stockholder upon conversion of
the Austin Ventures VIII, L.P. Convertible Notes).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) <U>Square 1 Bank Joinder Agreement</U>. Square 1 Bank shall executed and delivered to
Parent a Joinder Agreement, in form and substance satisfactory to Parent, in its sole discretion,
with respect to the Square 1 Loan and the current and future rights of the Company and/or Parent to
extend payment terms, refinance or otherwise modify the terms of the Square 1 Loan, and Square 1
Bank shall have consented in writing to the transactions contemplated by this Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi)&nbsp;<U>Termination of Shareholder Agreements</U>. The Company shall have entered into that
certain Termination Agreement dated as of the Closing Date, providing for the termination of that
certain Amended and Restated Investors&#146; Rights Agreement dated as of August&nbsp;24, 2006, (2)&nbsp;that
certain Amended and Restated Voting Agreement dated as of August&nbsp;24, 2006 (the &#147;Voting Agreement&#148;)
and (3)&nbsp;that certain Management Rights Letter dated as of April&nbsp;14, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii)&nbsp;<U>Square 1 Credit Card Facility</U>. The Company shall have delivered to Parent, or
Parent&#146;s representative, any and all credit cards that were issued pursuant to the Square 1 Bank
Credit Card facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii)&nbsp;<U>S3 Ventures Fund II. L.P. Summary of Terms Agreement</U>. With respect to that
certain Summary of Terms Agreement (&#147;<U>S3 Agreement</U>&#148;) dated for reference October&nbsp;8, 2009
between the Company and S3 Ventures Fund II, L.P. (&#147;<U>S3</U>&#148;), the Company shall have received a
letter, in form and substance satisfactory to Parent, whereby S3 agrees that, upon Closing and
receipt by S3 of its legal fees (as reflected in Schedule&nbsp;7.02(d)), the S3 Agreement will be deemed
terminated and S3 shall waived any and all rights and claims under such agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv)&nbsp;<U>Confirmation of Mailing of &#167;228 Notice</U>. Company shall have provided evidence
satisfactory to Parent that it has delivered to those of the Company&#146;s stockholders that have not
otherwise approved the Merger by written consent, an appraisal rights notice, which notice shall
include the stockholder resolutions approving the Merger as previously approved by the Company&#146;s
stockholders by written consent in accordance with Section&nbsp;228 of the DGCL.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE VII</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CLOSING MATTERS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.01 <U>The Closing. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to termination of this Agreement as provided in <U>Article&nbsp;VIII</U>, the closing of
the transactions contemplated by this Agreement (the &#147;<U>Closing</U>&#148;) shall take place at the
offices of Parsons Behle &#038; Latimer, 201 South Main Street, Salt Lake City, Utah on November&nbsp;2,
2009, or at such other place, date and time as may be mutually agreed in writing by the Company and
Parent (sometimes referred to herein as the &#147;<U>Closing Date</U>&#148;). Concurrently with the Closing,
the Certificate of Merger shall be filed with the Secretary of State of Delaware in accordance with
the DGCL. All documents delivered and actions taken at Closing shall be deemed to have been
delivered or taken simultaneously, and no such delivery or action shall be considered effective or
complete unless or until all other such deliveries or actions are completed or waived in writing by
the party against whom such waiver is sought to be enforced.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.02 <U>Exchange. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Effective Time, all outstanding Company Capital Stock shall, by virtue of the
Merger and without further action, cease to exist, and all such securities shall be converted into
the right to receive from Parent the cash amount to which the holder thereof is
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">entitled pursuant to Section&nbsp;2.01(d), subject to the provisions of Section&nbsp;2.01(e) (regarding
rights of holders of Dissenting Shares), Section&nbsp;2.03 (regarding the withholding of the Escrow
Cash) and Section&nbsp;2.04 (regarding the Closing Adjustment).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On the Closing Date, immediately prior to the Effective Time, Parent shall pay to the
Company stockholders which have voted in favor of the approval of the Merger and adoption of this
Agreement at the Stockholders&#146; Meeting or have delivered a Stockholder Consent, the portion of the
Closing Cash Consideration to which each stockholder of the Company is entitled pursuant to
Sections&nbsp;2.01(d)(i) and (ii).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;On the Closing Date, immediately prior to the Effective Time, Parent shall pay, or cause
to be paid by check, on behalf of the Company, to the various Incentive Plan Participants and those
amounts comprising part of the Closing Cash Consideration that are specified in the Merger
Consideration Certificate or in a schedule or exhibit thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;On the Closing Date, Parent shall pay, or cause to be paid, on behalf of the Company by
wire transfer of immediately available funds, the Transaction Expenses to the persons and in the
amounts set forth on <U>Schedule&nbsp;7.02(d)</U>, as such Schedule may be updated at Closing by
written agreement among the Parent, the Company Stockholder and the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;After the Effective Time, there shall be no further registration of transfers on the stock
transfer books of the Company or its transfer agent of any Company Capital Stock that were
outstanding immediately prior to the Effective Time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.03 <U>Dissenting Shares. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, in connection with the Merger, holders of Company Capital Stock are entitled to
dissenters&#146; rights pursuant to the DGCL, any Dissenting Shares shall not be converted into a right
to receive cash as provided in Section&nbsp;2.01(d), but shall be converted into the right to receive
such consideration as may be determined to be due with respect to such Dissenting Shares pursuant
to the DGCL. Each holder of Dissenting Shares who, pursuant to the provisions of the DGCL, becomes
entitled to payment of the fair value of such shares shall receive payment therefor in accordance
with the DGCL (but only after the value therefor shall have been agreed upon or finally determined
pursuant to the DGCL). In the event that any Company Stockholder fails to make an effective demand
for payment or fails to perfect its dissenters&#146; rights as to its shares of Company Capital Stock or
any Dissenting Shares shall otherwise lose their status as Dissenting Shares, then any such shares
shall immediately be converted into the right to receive the consideration issuable pursuant to
<U>Article&nbsp;II</U> in respect of such shares had such shares never been Dissenting Shares, and
Parent shall issue and deliver to the holder thereof, at (or as promptly as reasonably practicable
after) the applicable time or times specified in Section&nbsp;7.02, following the satisfaction of the
applicable conditions set forth in Section&nbsp;7.02, the cash, without interest thereon, to which such
Company Stockholder would have been entitled under Section&nbsp;2.01(d) with respect to such shares,
subject to the provisions of Section&nbsp;2.03 (regarding the withholding of the Escrow Cash). The
Company shall give Parent prompt notice (and in no event more than two business days) of any demand
received by the Company for appraisal of Company Capital Stock or notice of exercise of a Company
Stockholder&#146;s dissenters&#146; rights. The Company agrees that, except with Parent&#146;s prior written
consent, it shall not voluntarily make
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any payment or offer to make any payment with respect to, or settle or offer to settle, any
such demand for appraisal or exercise of dissenters&#146; rights.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE VIII</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">TERMINATION, AMENDMENT AND WAIVER, SURVIVAL OF REPRESENTATIONS,<BR>
INDEMNIFICATION AND REMEDIES, AND CONTINUING COVENANTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.01 <U>Termination by Mutual Consent. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated at any time prior to the Effective Time by the mutual written
consent of Parent and the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.02 <U>Unilateral Termination. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Either Parent or the Company, by giving written notice to the other, may terminate this
Agreement if a court of competent jurisdiction or other Governmental Authority shall have issued a
nonappealable final order, decree or ruling or taken any other action, in each case having the
effect of permanently restraining, enjoining or otherwise prohibiting the Merger or any other
material transaction contemplated by this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Either Parent or the Company, by giving written notice to the other, may terminate this
Agreement if the Merger shall not have been consummated by 5:00 p.m., Salt Lake City time, on
November&nbsp;6, 2009; provided, however, that the right to terminate this Agreement pursuant to this
Section&nbsp;8.02(b) shall not be available to any party whose breach of a representation or warranty or
covenant made under this Agreement by such party results in the failure of any condition set forth
in Article&nbsp;VI to be fulfilled or satisfied on or before such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.03 <U>Effect of Termination. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of termination of this Agreement as provided in Section&nbsp;8.02, this Agreement
shall forthwith become void and, except as expressly provided in Section&nbsp;8.03(ii), there shall be
no liability or obligation whatsoever on the part of Parent, Merger Sub or the Company or their
respective officers, directors, stockholders or affiliates; provided, however, that (i)&nbsp;the
provisions of this Section&nbsp;8.03 (Effect of Termination) and <U>Article&nbsp;XI</U> (General Provisions)
shall remain in full force and effect and survive any termination of this Agreement, and (ii)
nothing herein shall relieve any party hereto from liability in connection with any material breach
of any of such party&#146;s covenants contained herein or intentional material breach of such party&#146;s
representations and warranties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.04 <U>Amendment. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may not be amended except by an instrument in writing signed by each of the
parties hereto.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.05 <U>Waiver. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to applicable law, at any time prior to the Effective Time, any party hereto may (a)
extend the time for the performance of any obligation or other act of any other party hereto, (b)
waive any inaccuracy in the representations and warranties of any other party contained herein or
in any document delivered pursuant hereto and (c)&nbsp;waive compliance with any agreement of any other
party or any condition to its own obligations contained herein. Any such extension or waiver shall
be valid if set forth in an instrument in writing signed by the party or parties to be bound
thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.06 <U>Survival</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Merger is consummated, the representations and warranties of the Company and
contained in this Agreement shall survive the Effective Time and remain in full force and effect,
regardless of any investigation or disclosure made by or on behalf of any of the parties to this
Agreement, until the two-year anniversary of the Effective Time, after which time the
representations and warranties shall not form the basis for any claim for Damages (as defined
below); provided, however, that the Special Representations will remain operative and in full force
and effect, regardless of any investigation or disclosure made by or on behalf of any of the
parties to this Agreement, until the expiration of the applicable statute of limitations for claims
in respect thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Merger is consummated, the covenants contained in this Agreement shall survive the
Effective Time and remain in full force and effect until the two-year anniversary of the Effective
Time, after which time the covenants shall not form the basis for any claim for Damages (as defined
below); provided, however, that if the covenant explicitly states that it shall survive until a
date before or after the two-year anniversary of the Effective Time, then such covenant shall
survive for the period of time so specified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The obligations to indemnify and hold harmless a party pursuant to this <U>Article
VIII</U> with respect to a breach of a representation, warranty or covenant shall terminate when
the applicable survival period with respect to such representation, warranty or covenant has
expired pursuant to Sections&nbsp;8.06(a) and 8.06(b), respectively; provided, however that no right to
indemnification pursuant to this <U>Article&nbsp;VIII</U> in respect of any claim based upon any breach
of a representation, warranty or covenant that is set forth in a Notice of Claim delivered prior to
the expiry of the applicable survival period with respect to such representation, warranty or
covenant shall be affected by the expiration of such representation or warranty; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the expiration date of a representation or warranty shall not affect the rights of any
Parent Indemnified Person under this <U>Article&nbsp;VIII</U> or otherwise to seek recovery, until the
expiration of the applicable statute of limitations, of damages arising out of any fraud, willful
breach or intentional misrepresentation of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.07 <U>Agreement of Company Stockholder to Indemnify Parent Indemnified Parties</U>. The
Company Stockholder and the Incentive Plan Participants, as between the Company Stockholder on the
one hand, and the Incentive Plan Participants on the other, will severally indemnify and hold
harmless, in proportion to their respective Escrow Percentages, the Parent
</DIV>


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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indemnified Persons from and against any and all Damages arising out of, resulting from or in
connection with: (i)&nbsp;any failure of any representation or warranty made by the Company in this
Agreement or the Disclosure Schedule (including the schedules thereto) to be true and correct as of
the Closing Date; (ii)&nbsp;any failure of any certification, representation or warranty made by the
Company in any certificate delivered to Parent pursuant to any provision of this Agreement to be
true and correct as of the date such certificate is delivered to Parent; (iii)&nbsp;any breach of or
default in connection with any of the covenants or agreements made by the Company in this
Agreement; (iv)&nbsp;any Liabilities arising out of termination, as requested by Parent, of any of
Company&#146;s employees in connection with the anticipated effectiveness of the Merger and the
acquisition of the Company by Parent; or (v)&nbsp;any Dissenting Shares Excess Payments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.08 <U>Agreement of Parent to Indemnify Company Indemnified Persons</U>. Parent will
indemnify and hold harmless the Company Indemnified Persons from and against any and all Damages
arising out of, resulting from or in connection with: (i)&nbsp;any failure of any representation or
warranty made by the Parent in this Agreement to be true and correct as of the Closing Date; (ii)
any failure of any certification, representation or warranty made by the Parent in any certificate
delivered to Company or the Company Stockholder pursuant to any provision of this Agreement to be
true and correct as of the date such certificate is so delivered; and (iii)&nbsp;any breach of or
default in connection with any of the covenants or agreements made by the Parent in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.09 <U>Limitations. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding anything contained herein to the contrary, no Indemnified Person may
recover in respect of any claim for indemnification that is made pursuant to either Section&nbsp;8.07 or
Section&nbsp;8.08, as appropriate, and does not involve fraud, willful breach or intentional
misrepresentation by the other Indemnified Person unless and until Damages in an individual amount
greater than $10,000 (the &#147;<U>De Minimis Threshold</U>&#148;) and in an aggregate amount greater than
$25,000 (the &#147;<U>Basket</U>&#148;) have been incurred, paid or properly accrued, in which case the
Parent Indemnified Persons or Company Indemnified Persons, as the case may be, may make claims for
indemnification in respect of any Damages from the first dollar (including the first $25,000);
provided that all claims for indemnification which individually exceed the De Minimis Threshold may
be aggregated for purposes of determining whether the Basket has been reached, and that, for
purposes of determining whether claims for indemnification individually exceed the De Minimis
Threshold and whether such De Minimis Threshold has been reached, all claims for indemnification
arising out of the same, similar or related set of facts, circumstances or events giving rise to an
alleged breach or violation of the representations and warranties contained herein shall be
aggregated; provided further, however, that any Damages covered by clauses (iv)&nbsp;and (v)&nbsp;of Section
8.07 or arising from or relating to a breach of any Special Representation are not subject to
either of the De Minimis Threshold or the Basket and may be deducted from Escrow Cash on a dollar
for dollar basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any obligation to indemnify a Parent Indemnified Person for Damages shall be satisfied as
follows: <I>first, </I>out of the Escrow Cash pursuant to the terms of the Escrow Agreement, as such
amount may be replenished pursuant to Section&nbsp;2.01(g)(iv) herein, in which case the Escrow Cash
shall be reduced by the amount of any such Damages; <I>second</I>, through any Earnout Consideration paid
into Escrow and comprising part of the Escrow Amount pursuant to
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;2.01(g)(iv); and <I>third</I>, if and to the extent such Damages include a Payable
Post-Closing Adjustment, if the aggregate of all Damages exceeds both the Escrow Cash and any
Earnout Consideration payable hereunder, Company Shareholder shall promptly pay such excess amount
directly to Parent Indemnified Persons; <I>provided, </I>however, that, absent fraud, the maximum amount
of Damages for which the Company Stockholder and Incentive Plan Participants shall be liable
hereunder (including Section&nbsp;8.11) shall be $980,000, plus the amount of any Payable Post-Closing
Adjustment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <U>Notice of Claim; Claims Period</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As used herein, the term &#147;<U>Claim</U>&#148; means a claim by an Indemnified Person for
indemnification or Damages under this <U>Article&nbsp;VIII</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Either the Company Stockholder (acting on its own behalf or on behalf of the Incentive
Plan Representative) or the Parent (acting on its own behalf or on behalf of another Parent
Indemnified Person) may give notice of a Claim under this Agreement, whether for its own Damages
or, in the case of Parent, for Damages incurred by any other Parent Indemnified Person. Such party
(for the purposes of this <U>Article&nbsp;VIII</U>, the &#147;<U>Indemnified Party</U>&#148;) shall give written
notice of a Claim (a &#147;<U>Notice of Claim</U>&#148;) to the other party (for the purposes of this
<U>Article&nbsp;VIII</U>, the &#147;<U>Indemnifying Party</U>&#148;) (with a copy to the Escrow Agent if the
Claim involves recovery against the Escrow Cash) promptly after the Indemnified Party becomes aware
of the existence of any potential claim for indemnification under this <U>Article&nbsp;VIII</U> arising
from or relating to (i)&nbsp;any matter specified in Sections&nbsp;8.07 or 8.08, or, (ii)&nbsp;in the case of
Parent, the assertion, whether orally or in writing, against Parent or any other Parent Indemnified
Person of a claim, demand, suit, action, arbitration, investigation, inquiry or proceeding brought
by a third party against Parent or such other Parent Indemnified Person that is based on, arises
out of or relates to any matter specified in Section&nbsp;8.07 (in each such case, a &#147;<U>Third-Party
Claim</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Notice of Claim given pursuant to this Section&nbsp;8.10 shall contain the following
information:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;that the Indemnified Party has directly or indirectly incurred, paid or properly accrued
(in accordance with GAAP) or, in good faith, believes it shall have to directly or indirectly
incur, pay or accrue (in accordance with GAAP), Damages in an aggregate stated amount arising from
such Claim (which amount may be the amount of damages claimed by a third party in an action brought
against any Parent Indemnified Person based on alleged facts, which if true, would give rise to
liability for Damages to such Parent Indemnified Person under this <U>Article&nbsp;VIII</U>); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;a brief description, in reasonable detail (to the extent reasonably available to the
Indemnified Party), of the facts, circumstances or events giving rise to the alleged Damages based
on the Indemnified Party&#146;s good faith belief thereof, including the identity and address of any
third-party claimant (to the extent reasonably available) and copies of any formal demand or
complaint, the amount of Damages, the date each such item was incurred, paid or properly accrued,
or the basis for such anticipated liability, and the specific nature of the breach to which such
item is related.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The period during which a Claim may be initiated (as applicable, the &#147;<U>Claims
Period</U>&#148;) shall commence at the Effective Time and terminate thirty (30)&nbsp;days following the end
of the applicable survival period described in Section&nbsp;8.06 with respect to the factual basis upon
which such Claim is made. Notwithstanding anything contained herein to the contrary, any Claims for
Damages specified in any Notice of Claim delivered prior to expiration of the Claims Period with
respect to facts and circumstances existing prior to expiration of the Claims Period shall remain
outstanding until such Claims for Damages have been resolved or satisfied, notwithstanding the
expiration of such Claims Period. Until the expiration of the Claims Period, no delay on the part
of an Indemnified Party in delivering a Notice of Claim shall relieve such Indemnified Party from
any of its obligations under this <U>Article&nbsp;VIII</U> unless (and then only to the extent that)
the other Indemnifying Party is materially prejudiced thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 <U>Defense of Third Party Claims. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Parent shall determine and conduct the defense or settlement of any Third-Party Claim, and
the costs and expenses incurred by Parent in connection with such defense or settlement (including
reasonable attorneys&#146; fees, other professionals&#146; and experts&#146; fees and court or arbitration costs)
shall be included in the Damages for which Parent may seek indemnification pursuant to a Claim made
by any Parent Indemnified Person hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company Stockholder shall have the right to receive copies of all pleadings, notices
and communications with respect to the Third-Party Claim to the extent that receipt of such
documents by the Company Stockholder does not affect any privilege relating to the Parent
Indemnified Person and may participate in, but not to determine or conduct, any defense of the
Third-Party Claim or settlement negotiations with respect to the Third-Party Claim.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Parent shall seek the prior written consent of the Company Stockholder, which consent
shall not be unreasonably withheld, conditioned or delayed, before entering into any settlement
with respect to a Third-Party Claim. In the event that the Company Stockholder consents to such a
settlement of a Third-Party Claim, then Parent shall, subject to the provisions of <U>Article
VIII</U>, be entitled to recover the total amount of all Damages incurred in connection with
settlement of such Third-Party Claim from the Company Shareholder (subject to the limitations set
forth in Section&nbsp;8.09), and the Company Stockholder shall otherwise have no power or authority to
object under any provision of this <U>Article&nbsp;VIII</U> to such recovery. In the event that the
Parent elects to enter into such settlement of a Third-Party Claim and Company Stockholder has not
consented thereto, then such settlement shall not be conclusive evidence of the amount of Damages
incurred by the Parent or Parent Indemnified Person in respect of such Third-Party Claim.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the extent there is an inconsistency between this Section&nbsp;8.11 and Section&nbsp;5.07(a) with
respect to any Tax Claim, Section&nbsp;5.07(a) shall control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 <U>&#091;Intentionally Deleted.&#093; </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 <U>Resolution of Notice of Claim. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Notice of Claim shall be resolved as follows:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Uncontested Claims</U>. If, within 30&nbsp;days after a Notice of Claim is received, the
Indemnifying Party does not contest such Notice of Claim in writing as provided in Section&nbsp;8.13(b),
the Indemnifying Party shall be conclusively deemed to have consented to the recovery by the
Indemnified Party of the full amount of Damages specified in the Notice of Claim in accordance with
this <U>Article&nbsp;VIII</U>, including, as applicable, the forfeiture of Escrow Cash, and, without
further notice, to have stipulated to the entry of a final judgment for damages for such amount in
any court having jurisdiction over the matter where venue is proper.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Contested Claims</U>. If, however, the Indemnifying Party gives written notice
contesting all or any portion of a Notice of Claim (a &#147;<U>Contested Claim</U>&#148;) (with, in the case
where the Indemnified Party is represented by the Company Stockholder, a copy to the Escrow Agent)
within the 30&nbsp;day period specified in Section&nbsp;8.13(a), then such Contested Claim shall be resolved
by either (i)&nbsp;a written settlement agreement executed by both the Indemnified Party and the
Indemnifying Party (a copy of which shall be furnished to the Escrow Agent) or (ii)&nbsp;in the absence
of such a written settlement agreement within 60 business days following receipt of the Contested
Claim from the Indemnifying Party, by binding litigation in accordance with the terms and
provisions of Section&nbsp;8.13(c). If either the Indemnified Party or the Indemnifying Party receives
written notice of a Contested Claim, it shall within five business days provide written notice of
receipt to the other Indemnified Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Litigation of Contested Claims</U>. Either the Indemnified Party or the Indemnifying
Party may bring suit to resolve a Contested Claim. The decision of the trial court as to the
validity and amount of any claim in such Notice of Claim shall be nonappealable, binding and
conclusive upon the parties to this Agreement, and the Escrow Agent shall be entitled to act in
accordance with such decision and make or withhold payments out of the Escrow Cash in accordance
therewith. Judgment upon any award rendered by the trial court may be entered in any court having
jurisdiction. For purposes of this Section&nbsp;8.13(c), in any suit hereunder each party shall pay its
own expenses, including attorneys&#146; fees and costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14 <U>Release of Remaining Escrow Cash. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within thirty (30)&nbsp;days following the end of the Earnout Period (the &#147;<U>Escrow Release
Date</U>&#148;), the Escrow Cash shall be released to the Company Stockholder and Incentive Plan
Participants pursuant to the Escrow Agreement, other than any Escrow Amount that is necessary to
satisfy all unresolved, unsatisfied or disputed claims for Damages specified in any Notice of Claim
delivered to the Company Stockholder before the end of the Escrow Release Date. If any Claims for
which Parent has delivered a Notice of Claim to the Company Stockholder before the expiration of
the applicable Claims Period are unresolved, unsatisfied or disputed as of the expiration of the
applicable Claims Period, then the Escrow Agent shall retain possession and custody of that amount
of Escrow Cash that equals the total maximum amount of Damages then being claimed by Parent
Indemnified Persons in all such unresolved, unsatisfied or disputed Claims, and as soon as all such
Claims have been resolved, the Escrow Agent shall deliver to the Company Stockholder and Incentive
Plan Participants any remaining Escrow Amount not required to satisfy such Claims.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15 <U>Computation of Damages. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this <U>Article&nbsp;VIII</U>, all Damages of an Indemnified Person as a
result of an event or circumstance for which such Indemnified Person is subject to indemnification
under this <U>Article&nbsp;VIII</U> shall be computed net of any Tax benefit that such Indemnified
Person actually realizes in the year it incurs the Damages as a result of being able to currently
deduct the Damages for Tax purposes. For purposes of the prior sentence, the amount of any Tax
benefit shall be reduced to the extent an Indemnified Person or its Affiliate actually incurs any
Tax detriment as a result of currently including an indemnification payment into income as required
under applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16 <U>Tax Consequences of Indemnification Payments and Earnout Payments. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All payments (if any) made pursuant to any indemnification obligations under this
<U>Article&nbsp;VIII</U> will be treated as adjustments to the Merger Consideration for tax purposes
and such agreed treatment will govern for purposes of this Agreement, unless otherwise required by
law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All payments (if any) of Earnout Consideration will be treated as additional Merger
Consideration and, except to the extent such payments are required to be treated as interest under
Code Section&nbsp;483 or analogous provisions of the Code or state or local law, such treatment shall
govern for all Tax purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.17 <U>Sole Remedy</U>. From and after the Closing, the indemnification provided for in
this <U>Article&nbsp;VIII</U> shall be the sole and exclusive remedy of the Parent Indemnified Persons
and the Company Indemnified Persons, whether in contract, tort or otherwise, excepting fraud, for
all matters arising under or in connection with this Agreement, the transaction documents delivered
pursuant to this Agreement, and the transactions contemplated hereby and thereby, including,
without limitation, for any inaccuracy or breach of any representation, warranty, covenant or
agreement set forth herein. Notwithstanding any other provisions of this Agreement, the provisions
of this <U>Article&nbsp;VIII</U> shall not apply to any claim arising by reason of fraud of any party
hereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE IX</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">GENERAL PROVISIONS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.01 <U>Notices. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All notices, requests, claims, demands and other communications hereunder shall be in writing
and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in
person, by overnight courier, by facsimile or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties at the following addresses (or at such other
address for a party as shall be specified in a notice given in accordance with this Section&nbsp;9.01):
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="98%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">if to Parent or Merger Sub:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ClearOne Communications, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5225 Wiley Post Way, Suite&nbsp;500</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Salt Lake City, UT 84116</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone No.: (801)&nbsp;975-7200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier No.: (801)&nbsp;303-3333</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Zee Hakimoglu, President and</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">with a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Parsons Behle &#038; Latimer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1800 &#151; 201 South Main Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Salt Lake City, Utah 84111</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone No.: (801)&nbsp;536-6940</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier No.: (801)&nbsp;536-6111</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Geoffrey W. Mangum</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">if to the Company:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NetStreams, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3600 W. Parmer Lane, Suite # 100</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78727</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone No.: (512)&nbsp;977-9393</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier No.: (512)&nbsp;977-9398</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Kevin Reinis, President and</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">with a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wilson Sonsini Goodrich &#038; Rosati,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Professional Corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">900 South Capital of Texas Highway</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Las Cimas IV, Fifth Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78746</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone No.: (512)&nbsp;338-5400</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier No.: (512)&nbsp;338-5499</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Paul Tobias</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">if to the Company Stockholder:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin Ventures VIII, L.P</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">300 West 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;2300</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, Texas 87801-3902</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone No.: (512)&nbsp;485-1900</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier No.: (512)&nbsp;651-8500</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Clark Jernigan</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="98%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">with a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wilson Sonsini Goodrich &#038; Rosati</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">900 South Capital of Texas Highway</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Las Cimas IV, Fifth Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78746</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone No.: (512)&nbsp;338-5400</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier No.: (512)&nbsp;338-5499</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Paul Tobias</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">if to the Incentive Plan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kevin A Reinis</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Representative:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4608 Hero Court</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78735</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">H: 512.358.9198</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">C: 512.657.5573</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Personal Email: <u>kareinis@gmail.com</u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.02 <U>Severability. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any rule of law, or public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the Merger is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible in a mutually acceptable manner in order that
the Merger be consummated as originally contemplated to the fullest extent possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.03 <U>Entire Agreement; Assignment. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement constitutes the entire agreement among the parties with respect to the subject
matter hereof and supersedes all prior agreements and undertakings, both written and oral, among
the parties, or any of them, with respect to the subject matter hereof. This Agreement shall not be
assigned (whether pursuant to a merger, by operation of law or otherwise), except that Parent and
Merger Sub may assign all or any of their rights and obligations hereunder to any affiliate of
Parent, provided that no such assignment shall relieve the assigning party of its obligations
hereunder if such assignee does not perform such obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.04 <U>Parties in Interest. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and
nothing in this Agreement, express or implied, is intended to or shall confer upon any other person
any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, other
than Section&nbsp;5.08 (which is intended to be for the benefit of the persons covered thereby and may
be enforced by such persons) and any rights conferred hereunder to Incentive Plan Participants,
exercisable through the Incentive Plan Representative. Notwithstanding the foregoing, the Escrow
Agreement identifies Square 1 Bank as an intended
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">third party beneficiary hereunder of what is referred to therein as the &#147;Square 1 Payments,&#148;
which are provided for hereinabove, and the parties hereto acknowledge that such is in fact the
case.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 <U>Specific Performance. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that irreparable damage would occur in the event any provision of
this Agreement were not performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other remedy at law or
equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.06 <U>Governing Law and Consent to Jurisdiction. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed by, and construed in accordance with, the laws of the State
of Delaware applicable to contracts executed in and to be performed in that State. The parties
hereto hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of Utah
and the Federal courts of the United States of America located within the County of Salt Lake in
the State of Utah solely in respect of the interpretation and enforcement of the provisions of this
Agreement and of the documents referred to in this Agreement, and in respect of the transactions
contemplated hereby and thereby (including resolution of disputes under Section&nbsp;8.13(c)), and
hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the
interpretation or enforcement hereof or thereof, that it is not subject thereto or that such
action, suit or proceeding may not be brought or is not maintainable in said courts or that the
venue thereof may not be appropriate or that this Agreement or any such document may not be
enforced in or by such courts, and the parties hereto irrevocably agree that all claims with
respect to such action or proceeding shall be heard and determined in such a Utah State or Federal
court. The parties hereby consent to and grant any such court jurisdiction over the person of such
parties and over the subject matter of such dispute and agree that mailing of process or other
papers in connection with any such action or proceeding in the manner provided in Section&nbsp;9.01 or
in such other manner as may be permitted by applicable law, shall be valid and sufficient service
thereof. With respect to any particular action, suit or proceeding, venue shall lie solely in Salt
Lake County, Utah.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.07 <U>Waiver of Jury Trial. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the parties hereto hereby waives to the fullest extent permitted by applicable law any
right it may have to a trial by jury with respect to any litigation directly or indirectly arising
out of, under or in connection with this Agreement or the Merger. Each of the parties hereto (a)
certifies that no representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek to enforce that
foregoing waiver and (b)&nbsp;acknowledges that it and the other hereto have been induced to enter into
this Agreement and the Merger, as applicable, by, among other things, the mutual waivers and
certifications in this Section&nbsp;9.07.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.08 <U>Headings. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The descriptive headings contained in this Agreement are included for convenience of reference
only and shall not affect in any way the meaning or interpretation of this Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.09 <U>Counterparts. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed and delivered (including by facsimile transmission) in one or
more counterparts, and by the different parties hereto in separate counterparts, each of which when
executed shall be deemed to be an original but all of which taken together shall constitute one and
the same agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;Signature Page to Follow&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->71<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first
written above by their respective officers thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CLEARONE COMMUNICATIONS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>

<TD align="left" style="border-bottom: 0px solid #000000">President
and CEO</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ALTA-WASATCH ACQUISITION CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>

<TD align="left" style="border-bottom: 0px solid #000000">President
and CEO</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NETSTREAMS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>

<TD align="left" style="border-bottom: 0px solid #000000">President
and CEO</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">AUSTIN VENTURES VIII, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Joseph C. Aragona</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">Joseph C. Aragona</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">General
Partner</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">INCENTIVE PLAN REPRESENTATIVE:<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/
Kevin A. Reinis
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">KEVIN A. REINIS&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->72<!-- /Folio -->
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>3
<FILENAME>p16247exv10w23.htm
<DESCRIPTION>EX-10.23
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w23</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.23</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>JOINDER TO</B><BR>
<U><B>LOAN AND SECURITY AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Joinder to Loan and Security Agreement (this &#147;<B>Joinder</B>&#148;), dated as of November&nbsp;3, 2009, is
executed and delivered by <B>CLEARONE COMMUNICATIONS, INC.</B>, a Utah corporation (&#147;<B>New Borrower</B>&#148;), and
<B>SQUARE 1 BANK </B>(the &#147;<B>Bank</B>&#148;). Capitalized terms used herein but not otherwise defined herein shall
have the meanings ascribed to those terms in the Loan Agreement as defined below.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>RECITALS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;Netstreams, Inc., a Delaware corporation and Netstreams, LLC, a Delaware limited liability
company (collectively, &#147;<B>Borrower</B>&#148;) and the Bank are parties to that certain Loan and Security
Agreement dated as of November&nbsp;12, 2008 (the &#147;<B>Loan Agreement</B>&#148;), and the Loan Agreement has been
amended from time to time, most recently by that &#147;Fifth Amendment to Forbearance Agreement and
Sixth Amendment to Loan and Security Agreement&#148; dated October&nbsp;8, 2009 (as so amended from time to
time, the &#147;<B>Original Loan Agreement</B>&#148;). Additionally, there is a Sixth Amendment to Forbearance
Agreement dated October&nbsp;29, 2009 (the &#147;Sixth Amendment to Forbearance Agreement&#148;), amending the
Forbearance Agreement and First Amendment to Loan and Security Agreement dated as of March&nbsp;31,
2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;Subject to the consummation of the Acquisition, defined below, from and after the
effectiveness of the Acquisition (the &#147;<B>Effective Time</B>&#148;) New Borrower, Borrower, and the Bank desire
to supplement the terms and provisions of the Original Loan Agreement as provided herein, and the
Original Loan Agreement as supplemented by this Joinder, and as may be hereafter further
supplemented, amended, modified or restated from time to time, shall be referred to collectively as
the &#147;<B>Loan Agreement</B>.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;Borrower intends to enter into an agreement with New Borrower through which New Borrower
will acquire Borrower (the &#147;<B>Acquisition</B>&#148;). Bank hereby provides its consent to such Acquisition
and waives any provisions in the Loan Agreement which would be applicable to such Acquisition;
provided that New Borrower executes this Joinder for the purpose of acknowledging that it is and
shall be a Borrower under the Loan Agreement and the other Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;New Borrower has read and approved the Loan Documents and has asked Bank to agree to allow
New Borrower to become a party to the Loan Documents in order to facilitate its ability to continue
to operate its business by achieving a stronger financial base for itself and its affiliated
companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE</B>, in consideration of the premises herein contained, and for other good and
valuable consideration (the receipt, sufficiency and adequacy of which are hereby acknowledged),
the parties hereto (intending to be legally bound) hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <U>Incorporation</U>. The foregoing preamble and recitals are incorporated herein by this
reference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <U>Joinder and Assumption</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement shall not be effective until the Acquisition is consummated, which is the
Effective Time. From and after the Effective Time, New Borrower hereby absolutely and
unconditionally joins as and becomes a party to the Loan Agreement as a Borrower thereunder, (ii)
assumes, as a joint and several obligor thereunder, all of the obligations, liabilities and
indemnities of a Borrower under the Loan Agreement and all other Loan Documents, and (iii)
covenants and agrees to be bound by and adhere to all of the terms, covenants, waivers, releases,
agreements and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">conditions of or respecting a Borrower with respect to the Loan Agreement and the other Loan
Documents and all of the representations and warranties contained in the Loan Agreement (in the
manner set forth in Section&nbsp;4 of this Joinder) and the other Loan Documents with respect to New
Borrower. From and after the Effective Time, any reference to the term &#147;Borrower&#148; in the Loan
Agreement shall also include New Borrower. Except as expressly provided herein, the Loan Agreement
remains in full force and effect and is hereby ratified and confirmed in all respects.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding the foregoing and the provisions of the Section&nbsp;4 of the Loan Agreement,
New Borrower shall not be required to and does not grant any security interest in any of New
Borrower&#146;s now owned and existing and hereafter acquired and arising assets as collateral for the
Liabilities. For clarity, New Borrower understands that the existing collateral arrangement with
respect to Borrower&#146;s assets shall continue per the terms of the Original Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Bank acknowledges that the representation of NetStreams, LLC, in the Sixth Amendment
to Forbearance Agreement regarding solvency may not have been accurate at such time and agrees to
waive that specific representation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <U>Consent to Terms of Acquisition</U>. Bank hereby provides its consent to such
Acquisition and waives any provisions in the Loan Agreement which would be applicable to such
Acquisition; provided that New Borrower executes this Joinder for the purpose of acknowledging that
it is and shall be a Borrower under the Loan Agreement and the other Loan Documents. In connection
with the Acquisition and the requirements of Section&nbsp;7.9 of the Loan Agreement, Bank also provides
it consent to the payment of Subordinated Debt to AV VIII Holdings, Inc., by New Borrower, on
behalf of Borrower, the principal amount of $250,000, plus accrued and unpaid interest. Such
payment shall not be considered a default under the terms of the Loan Agreement. Notwithstanding
Bank&#146;s consent to such payment, the Subordination Agreement between Bank and AV VIII Holdings, Inc.
shall otherwise remain unmodified and in full force and effect following the date hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <U>Representations and Warranties</U>. New Borrower hereby represents and warrants to the
Bank, which representations and warranties shall survive the execution and delivery hereof, that:
(a)&nbsp;this Joinder is the legally valid and binding obligation of New Borrower, enforceable against
New Borrower in accordance with its terms, (b)&nbsp;except as otherwise set forth below, each of the
representations and warranties contained in the Original Loan Agreement, as well as all other
representations and warranties contained in the other Loan Documents, are true and correct in all
respects to the extent required under the Original Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <U>Successors and Assigns</U>. This Joinder shall be binding upon New Borrower, the
Borrowers, and the Bank and Bank&#146;s successors and assigns, and shall inure to the benefit of the
New Borrower, the Banks and the Bank&#146;s successors and assigns. No other person or entity shall be
a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim
in connection with, this Joinder. The New Borrower may not assign or transfer any of its rights or
obligations under this Joinder without the prior written consent of the Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <U>Severability; Construction</U>. Wherever possible, each provision of this Joinder
shall be interpreted in such manner so as to be effective and valid under applicable law, but if
any provision of this Joinder shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such provision or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Joinder. All obligations of
the New Borrower and rights of the Bank expressed herein shall be in addition to and not in
limitation of those provided by applicable law.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <U>Counterparts; Facsimile and other Electronic Transmission</U>. This Joinder may be
executed in any number of counterparts and by the different parties hereto on separate counterparts
and each such counterpart shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same Joinder. Receipt of an executed signature page to this
Joinder by facsimile or other electronic transmission shall constitute for all purposes effective
delivery thereof. Electronic records of this executed Joinder maintained by the Banks shall be
deemed to be originals. The Recitals hereto are hereby made a part of this Joinder by this
reference thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7. </B><U><B>GOVERNING LAW</B></U><B>. THIS JOINDER SHALL BE A CONTRACT MADE UNDER AND BE CONSTRUED,
ENFORCED AND GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8. </B><U><B>WAIVER OF JURY TRIAL</B></U><B>. BANK AND BORROWER WAIVE ANY RIGHT TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREIN, INCLUDING CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON
LAW OR STATUTORY BASES. ALL DISPUTES, CONTROVERSIES, CLAIMS, ACTIONS AND SIMILAR PROCEEDINGS
ARISING WITH RESPECT TO BORROWER&#146;S ACCOUNT OR ANY RELATED AGREEMENT OR TRANSACTION SHALL BE BROUGHT
IN THE GENERAL COURT OF JUSTICE OF NORTH CAROLINA SITTING IN DURHAM COUNTY, NORTH CAROLINA OR THE
UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA, EXCEPT AS PROVIDED BELOW
WITH RESPECT TO ARBITRATION OF SUCH MATTERS. IF THE JURY WAIVER SET FORTH IN THIS SECTION IS NOT
ENFORCEABLE, THEN ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN WILL BE FINALLY SETTLED BY BINDING ARBITRATION IN
DURHAM COUNTY, NORTH CAROLINA IN ACCORDANCE WITH THE THEN-CURRENT COMMERCIAL ARBITRATION RULES OF
THE AMERICAN ARBITRATION ASSOCIATION BY ONE ARBITRATOR APPOINTED IN ACCORDANCE WITH SAID RULES.
THE ARBITRATOR SHALL APPLY NORTH CAROLINA LAW TO THE RESOLUTION OF ANY DISPUTE, WITHOUT REFERENCE
TO RULES OF CONFLICTS OF LAW OR RULES OF STATUTORY ARBITRATION. JUDGMENT ON THE AWARD RENDERED BY
THE ARBITRATOR MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. NOTWITHSTANDING THE
FOREGOING, THE PARTIES MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION FOR PRELIMINARY OR INTERIM
EQUITABLE RELIEF, OR TO COMPEL ARBITRATION IN ACCORDANCE WITH THIS PARAGRAPH. THE EXPENSES OF THE
ARBITRATION, INCLUDING THE ARBITRATOR&#146;S FEES, REASONABLE ATTORNEYS&#146; FEES AND EXPERT WITNESS FEES,
INCURRED BY THE PARTIES TO THE ARBITRATION, MAY BE AWARDED TO THE PREVAILING PARTY, IN THE
DISCRETION OF THE ARBITRATOR, OR MAY BE APPORTIONED BETWEEN THE PARTIES IN ANY MANNER DEEMED
APPROPRIATE BY THE ARBITRATOR. UNLESS AND UNTIL THE ARBITRATOR DECIDES THAT ONE PARTY IS TO PAY
FOR ALL (OR A SHARE) OF SUCH EXPENSES, BOTH PARTIES SHALL SHARE EQUALLY IN THE PAYMENT OF THE
ARBITRATOR&#146;S FEES AS AND WHEN BILLED BY THE ARBITRATOR.</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the undersigned have caused this Joinder to Loan and Security Agreement to
be duly executed and delivered as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U><B>NEW BORROWER</B></U><B>:<BR>
<BR>
CLEARONE COMMUNICATIONS, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="0" align="left">Its:&nbsp;</TD>
    <TD colspan="0" align="left">President and CEO</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U><B>BANK</B></U><B>:<BR>

<BR>
SQUARE 1 BANK</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Tommy Deavenport</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Tommy Deavenport</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="0" align="left">Its:&nbsp;</TD>
    <TD colspan="0" align="left">SVP</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Acknowledged and Agreed</B></U><B>:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>BORROWER</B></U><B>:</B>

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>

    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>

    <TD colspan="3" align="left"><B>NETSTREAMS, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>

    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>

    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>

    <TD>&nbsp;</TD>
    <TD colspan="0" align="left">Its:&nbsp;</TD>
    <TD align="left">CEO</TD>
    <TD align="left"></TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>

    <TD colspan="3" align="left"><B>NETSTREAMS, LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>

    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>

    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>

    <TD>&nbsp;</TD>
    <TD colspan="0" align="left">Its:&nbsp;</TD>
    <TD colspan="0" align="left">CEO</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.24
<SEQUENCE>4
<FILENAME>p16247exv10w24.htm
<DESCRIPTION>EX-10.24
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w24</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.24</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SEVENTH AMENDMENT<BR>
TO<BR>
LOAN AND SECURITY AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Seventh Amendment to Loan and Security Agreement (the &#147;<B><I>Amendment</I></B>&#148;), is entered into as of
November&nbsp;3, 2009, by and between SQUARE 1 BANK (the &#147;<B><I>Bank</I></B>&#148;) and CLEARONE COMMUNICATIONS, INC.,
NETSTREAMS, INC. AND NETSTREAMS, LLC (collectively, &#147;<B><I>Borrower</I></B><I>&#148;).</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>RECITALS</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower and Bank are parties to that certain Loan and Security Agreement dated as of November&nbsp;12,
2008 (as amended from time to time, with related documents, including that certain Joinder to Loan
and Security Agreement, of even date herewith, the &#147;<B><I>Loan Agreement</I></B>&#148;). The parties desire to amend
the Loan Agreement in accordance with the terms of this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Now, therefore, the parties agree as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bank and Borrower hereby agree that the Forbearance Agreement shall not be modified in any
respect by this Amendment, and is and shall remain in full force and effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;2.1(c)(ii) of the Loan Agreement is hereby amended and restated, in its entirety, as
follows:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Interest shall accrue from the date of each Term Loan at the rate specified in
Section&nbsp;2.3(a), and shall be payable monthly on the first day of each month. The entire
principal amount of any Term Loans outstanding as of November&nbsp;3, 2009, and any accrued and
unpaid interest thereon, shall be due and payable on the Term Loan Maturity Date, Term
Loans, once repaid, may not be reborrowed. Borrower may prepay any Term Loan without
penalty or premium.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;2.5(c) of the Loan Agreement is hereby amended and restated, in its entirety, as
follows:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Success Fee/Earnout Payments.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) </B>On November&nbsp;3, 2009, Borrower shall pay to Bank a success fee, in Cash, in the
amount of $10,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(ii) </B>If Earnout Consideration is paid pursuant to Section&nbsp;2.01(g) of that certain
Agreement and Plan of Merger, dated as of November&nbsp;3, 2009, by and among ClearOne
Communications, Inc., Alta-Wasatch Acquisition Corporation, NetStreams, Inc., Austin
Ventures VIII, L.P., and the Incentive Plan Representative named therein (the &#147;<B>Merger
Agreement</B>&#148;) with respect to the Year 1 Earnout or the Year 2 Earnout (each as defined in the
Merger Agreement), to the extent funds are available, Borrower shall pay to Bank a success
fee, in Cash, in the amount of $15,000 upon the payment to the earnout beneficiaries of the
Year 1 Earnout and $15,000 upon the payment to the earnout beneficiaries of the Year 2
Earnout.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The provisions of this Section&nbsp;2.5(c) shall survive any termination of this Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following definition in Exhibit&nbsp;A to the Loan Agreement is hereby amended and restated,
in its entirety, as follows:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Term Loan Maturity Date</B>&#148; means December&nbsp;15, 2009.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise defined, all initially capitalized terms in this Amendment shall be as
defined in the Loan Agreement. The Loan 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 Bank under the Loan Agreement, as in effect prior to the date
hereof. Borrower ratifies and reaffirms the continuing effectiveness of all agreements
entered into in connection with the Loan Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As a condition to the effectiveness of this Amendment, Bank shall have received, in form and
substance satisfactory to Bank, the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this Amendment, duly executed by Borrower;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>payment of all Bank expenses, including Bank&#146;s expenses for the documentation
of this Amendment and any related documents, which may be debited from any of
Borrower&#146;s accounts; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such other documents and completion of such other matters, as Bank may
reasonably deem necessary or appropriate.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>&#091;Remainder of Page Intentionally Left Blank&#093;</I></B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above
written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><B>CLEARONE COMMUNICATIONS,
INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>SQUARE 1 BANK</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">/s/ Zeynep Hakimoglu</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">/s/ Tommy Deavenport</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and CEO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SVP</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><B>NETSTREAMS, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">/s/ Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CEO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><B>NETSTREAMS, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">/s/ Kevin A. Reinis</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CEO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>&#091;Signature Page to Seventh Amendment to Loan and Security Agreement&#093;</I></B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NETSTREAMS, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>LOAN AND SECURITY AGREEMENT</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This LOAN AND SECURITY AGREEMENT (the &#147;Agreement&#148;) is entered into as of November&nbsp;12, 2008, by and
between Square 1 Bank (&#147;Bank&#148;) and each of NetStreams, Inc. (&#147;Parent&#148; and a &#147;Borrower&#148;) and
NetStreams, LLC (a &#147;Borrower&#148;; collectively with Parent referred to herein as &#147;Borrowers&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to
Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower, and
Borrower will repay the amounts owing to Bank.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The parties agree as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>DEFINITIONS AND CONSTRUCTION</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.1 Definitions</B>. As used in this Agreement, all capitalized terms shall have the
definitions set forth on Exhibit&nbsp;A. Any term used in the Code and not defined herein shall
have the meaning given to the term in the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.2 Accounting Terms</B>. Any accounting term not specifically defined on Exhibit&nbsp;A shall
be construed in accordance with GAAP and all calculations shall be made in accordance with
GAAP (except (i)&nbsp;for non-compliance with FAS 123R in monthly reporting, (ii)&nbsp;the absence of
footnotes and subject to year end adjustments for unaudited financial statements, (iii)
accruals are invoice based for unaudited financial statements, (iii)&nbsp;for the absence of
depreciation calculations for unaudited financial statements, (iv)&nbsp;for the absence of
payroll accruals). The term &#147;financial statements&#148; shall include the accompanying notes and
schedules.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>LOAN AND TERMS OF PAYMENT</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.1 Credit Extensions</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Promise to Pay</B>. Borrower promises to pay to Bank, in lawful money of the United
States of America, the aggregate unpaid principal amount of all Credit Extensions made by
Bank to Borrower, together with interest on the unpaid principal amount of such Credit
Extensions at rates in accordance with the terms hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Advances Under Formula Revolving Line</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i)&nbsp;Amount</B>. Subject to and upon the terms and conditions of this Agreement, Borrower may
request Advances in an aggregate outstanding principal amount not to exceed the lesser of: (A)&nbsp;the
Formula Revolving Line; or (B)&nbsp;the Borrowing Base, less any amounts outstanding under the
Ancillary Services Sublimit. Amounts borrowed pursuant to this Section&nbsp;2.1(b) may be repaid and
reborrowed at any time prior to the Formula Revolving Maturity Date, at which time all Advances
under this Section&nbsp;2.1(b) shall be
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NetStreams, Inc. LSA
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">immediately due and payable. Borrower may prepay any Advances without penalty or premium.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(ii)&nbsp;Form of Request</B>. Whenever Borrower desires an Advance, Borrower will notify Bank by
facsimile transmission, telephone or email no later than 5:30 p.m. Eastern time (4:30 p.m. Eastern
time for wire transfers), on the Business Day that the Advance is to be made. Each such
notification shall be promptly confirmed by a Loan Advance/Paydown Request Form in substantially
the form of Exhibit&nbsp;C. Bank is authorized to make Advances under this Agreement, based upon
instructions received from a Responsible Officer or a designee of a Responsible Officer, or
without instructions if in Bank&#146;s discretion such Advances are necessary to meet Obligations which
have become due and remain unpaid. Bank shall be entitled to rely on any telephonic or email
notice given by a person whom Bank reasonably believes to be a Responsible Officer or a designee
thereof, and Borrower shall indemnify and hold Bank harmless for any damages, loss, costs and
expenses suffered by Bank as a result of such reliance. Bank will credit the amount of Advances
made under this Section&nbsp;2.1(b) to Borrower&#146;s deposit account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(iii)&nbsp;Ancillary Services Sublimit</B>. Subject to the availability under the Formula Revolving
Line, at any time and from time to time from the date hereof through the Business Day immediately
prior to the Formula Revolving Maturity Date, Borrower may request the provision of Ancillary
Services from Bank. The aggregate limit of the Ancillary Services shall not exceed the Ancillary
Services Sublimit, provided that availability under the Formula Revolving Line shall be reduced by
the aggregate limits of (i)&nbsp;any outstanding and undrawn amounts under all Letters of Credit issued
hereunder, (ii)&nbsp;corporate credit card services provided to Borrower, (iii)&nbsp;the total amount of any
Automated Clearing House processing reserves, (iv)&nbsp;the applicable Foreign Exchange Reserve
Percentage, and (v)&nbsp;any other reserves taken by Bank in connection with other treasury management
services requested by Borrower and approved by Bank. In addition, Bank may, in its sole
discretion, charge as Advances any amounts for which Bank becomes liable to third parties in
connection with the provision of the Ancillary Services. The terms and conditions (including
repayment and fees) of such Ancillary Services shall be subject to the terms and conditions of the
Bank&#146;s standard forms of application and agreement for the applicable Ancillary Services, which
Borrower hereby agrees to execute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(iv)&nbsp;Collateralization of Obligations Extending Beyond Maturity</B>. If Borrower has not secured
to Bank&#146;s satisfaction its obligations with respect to any Ancillary Services by the Formula
Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held
by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower&#146;s name
(and any interest paid thereon or proceeds thereof, including any amounts payable upon the
maturity or liquidation of such certificates or accounts), shall automatically secure such
obligations to the extent of the then continuing or outstanding Ancillary Services. Borrower
authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any
requests by Borrower or any other Person to pay or otherwise transfer any part of such balances
for so long as the applicable Ancillary Services are outstanding or continue.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Term Loan</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i)&nbsp;</B>Subject to and upon the terms and conditions of this Agreement, Bank agrees to make one
(1)&nbsp;or more term loans to Borrower in an aggregate principal amount not to exceed Two Million
Dollars ($2,000,000) (each a &#147;Term Loan &#147; and collectively the &#147;Term Loans&#148;). Borrower may
request Term Loans at any time from the date hereof through the Availability End Date. The
proceeds of the Term Loans shall be used to refinance Borrower&#146;s existing credit facility with
Comerica.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(ii)&nbsp;</B>Interest shall accrue from the date of each Term Loan at the rate specified in Section
2.3(a), and prior to the Availability End Date for the applicable Term Loan shall be payable
monthly beginning on the first day of the month next following such Term Loan, and continuing on
the same day of each month thereafter. Any Term Loans that are outstanding on the Availability
End Date shall be payable in 30 equal monthly installments of principal, plus all accrued
interest, beginning on the first day of the month immediately following the Availability End Date,
and continuing on the same day of each month thereafter through the Term Loan Maturity Date, at
which time all amounts due in connection with the Term Loans and any other amounts due under this
Agreement shall be immediately due and payable. Term Loans, once repaid, may not be reborrowed.
Borrower may prepay any Term Loan without penalty or premium.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(iii)&nbsp;</B>When Borrower desires to obtain a Term Loan, Borrower shall notify Bank (which notice
shall be irrevocable) by facsimile transmission to be received no later than 5:30 p.m. Eastern
time on the day on which the Term Loan is to be made. Such notice shall be substantially in the
form of Exhibit&nbsp;C. The notice shall be signed by a Responsible Officer or its designee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.2 Overadvances</B>. If the aggregate amount of the outstanding Advances exceeds the
lesser of the Formula Revolving Line or the Borrowing Base at any time, Borrower shall
immediately pay to Bank, in cash, the amount of such excess.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.3 Interest Rates, Payments, and Calculations</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Interest Rates</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i)&nbsp;Formula Advances</B>. Except as set forth in Section&nbsp;2.3(b), the Advances shall bear
interest, on the outstanding daily balance thereof, at a variable annual rate equal to 1.25% above
the Prime Rate then in effect; provided that following Borrower&#146;s completion of the Funding
Milestone set forth in Section&nbsp;6.7, the Advances shall bear interest, on the outstanding daily
balance thereof, at a variable annual rate equal to 0.75% above the Prime Rate then in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(ii)&nbsp;Term Loans</B>. Except as set forth in Section&nbsp;2.3(b), the Term Loans shall bear interest,
on the outstanding daily balance thereof, at a variable rate equal to 2.00% above the Prime Rate
then in effect; provided that following Borrower&#146;s completion of the Funding Milestone set forth
in Section&nbsp;6.7 hereof, the Term Loans shall bear interest, on the outstanding daily balance
thereof, at a variable rate equal to 1.50% above the Prime Rate then in effect.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Late Fee; Default Rate</B>. If any payment is not made within 15&nbsp;days after the date
such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i)&nbsp;5% of the
amount of such unpaid amount or (ii)&nbsp;the maximum amount permitted to be charged under
applicable law. All Obligations shall bear interest, from and after the occurrence and
during the continuance of an Event of Default, at a rate equal to 5&nbsp;percentage points above
the interest rate applicable immediately prior to the occurrence of the Event of Default.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Payments</B>. Interest under the Formula Revolving Line shall be due and payable on
the first calendar day of each month during the term hereof. Bank shall, at its option,
charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower&#146;s
deposit accounts or against the Formula Revolving Line, in which case those amounts shall
thereafter accrue interest at the rate then applicable hereunder. Any interest not paid when
due shall be compounded by becoming a part of the Obligations, and such interest shall
thereafter accrue interest at the rate then applicable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Computation</B>. In the event the Prime Rate is changed from time to time hereafter,
the applicable rate of interest hereunder shall be increased or decreased, effective as of
the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All
interest chargeable under the Loan Documents shall be computed on the basis of a 360&nbsp;day
year for the actual number of days elapsed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.4 Crediting Payments</B>. If no Event of Default exists, Bank shall credit a wire
transfer of funds, check or other item of payment to such deposit account or Obligation as
Borrower specifies. During the existence of an Event of Default, Bank shall have the right,
in its sole discretion, to immediately apply any wire transfer of funds, check, or other
item of payment Bank may receive to conditionally reduce Obligations, but such applications
of funds shall not be considered a payment on account unless such payment is of immediately
available federal funds or unless and until such check or other item of payment is honored
when presented for payment. Notwithstanding anything to the contrary contained herein, any
wire transfer or payment received by Bank after 5:30 p.m. Eastern time shall be deemed to
have been received by Bank as of the opening of business on the immediately following
Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be due
(except by reason of acceleration) on a date that is not a Business Day, such payment shall
instead be due on the next Business Day, and additional fees or interest, as the case may
be, shall accrue and be payable for the period of such extension.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.5 Fees</B>. Borrower shall pay to Bank the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Facility Fee</B>. On or before the Closing Date, a fee equal to $10,000, which shall
be nonrefundable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Bank Expenses</B>. On the Closing Date, all Bank Expenses incurred through the Closing
Date, and, after the Closing Date, all Bank Expenses, as and when they become due.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.6 Term</B>. This Agreement shall become effective on the Closing Date and, subject to
Section&nbsp;12.7, shall continue in full force and effect for so long as any Obligations remain
outstanding or Bank has any obligation to make Credit Extensions under this Agreement.
Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make
Credit Extensions under this Agreement immediately and without notice upon the occurrence
and during the continuance of an Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>CONDITIONS OF LOANS</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.1 Conditions Precedent to Initial Credit Extension</B>. The obligation of Bank to make
the initial Credit Extension is subject to the condition precedent that Bank shall have
received, in form and substance satisfactory to Bank, each the following items and completed
each of the following requirements:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>an officer&#146;s certificate of each Borrower with respect to incumbency and
resolutions authorizing the execution and delivery of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>a financing statement (Form UCC-1) for each Borrower;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>an intellectual property security agreement for each Borrower;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>payment of the fees and Bank Expenses then due specified in Section&nbsp;2.5, which may
be debited from any of Borrower&#146;s accounts with Bank;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>current SOS Reports for each Borrower indicating that except for Permitted Liens,
there are no other security interests or Liens of record in the Collateral;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g) </B>current financial statements, including audited statements (or such other level
required by the Investment Agreement) for Borrower&#146;s most recently ended fiscal year,
together with an unqualified opinion (or an opinion qualified only for going concern so long
as Borrower&#146;s investors provide additional equity as needed), company prepared consolidated
and consolidating balance sheets and income statements for the most recently ended month in
accordance with Section&nbsp;6.2, and such other updated financial information as Bank may
reasonably request;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h) </B>current Compliance Certificate in accordance with Section&nbsp;6.2;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) </B>a Warrant in form and substance satisfactory to Bank;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j) </B>a Subordination Agreement from Austin Ventures, in form and substance satisfactory
to Bank;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(k) </B>a Borrower Information Certificate;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(l) </B>Borrower shall have opened and funded not less than $50,000 in deposit accounts
held with Bank; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(m) </B>such other documents or certificates, and completion of such other matters, as Bank
may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2 Conditions Precedent to all Credit Extensions</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>The obligation of Bank to make each Credit Extension, including the initial Credit
Extension, is further subject to the following conditions: timely receipt by Bank of the
Loan Advance/Paydown Request Form as provided in Section&nbsp;2.1; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>the representations and warranties contained in Section&nbsp;5 shall be true and correct
in all material respects on and as of the date of such Loan Advance/Paydown Request Form and
on the effective date of each Credit Extension as though made at and as of each such date,
and no Event of Default shall have occurred and be continuing, or would exist after giving
effect to such Credit Extension (provided, however, that those representations and
warranties expressly referring to another date shall be true, correct and complete in all
material respects as of such date). The making of each Credit Extension shall be deemed to
be a representation and warranty by Borrower on the date of such Credit Extension as to the
accuracy of the facts referred to in this Section&nbsp;3.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>CREATION OF SECURITY INTEREST</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.1 Grant of Security Interest</B>. Borrower grants and pledges to Bank a continuing
security interest in the Collateral to secure prompt repayment of any and all Obligations
and to secure prompt performance by Borrower of each of its covenants and duties under the
Loan Documents. Except for Permitted Liens or as disclosed in the Schedule, such security
interest constitutes a valid, first priority security interest in the presently existing
Collateral, and will constitute a valid, first priority security interest in later-acquired
Collateral. Notwithstanding any termination, of this Agreement or of any filings undertaken
related to Bank&#146;s rights under the Code, Bank&#146;s Lien on the Collateral shall remain in
effect for so long as any Obligations are outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.2 Perfection of Security Interest</B>. Borrower authorizes Bank to file at any time
financing statements, continuation statements, and amendments thereto that (i)&nbsp;either
specifically describe the Collateral or describe the Collateral as all assets of Borrower of
the kind pledged hereunder, and (ii)&nbsp;contain any other information required by the Code for
the sufficiency of filing office acceptance of any financing statement, continuation
statement, or amendment, including whether Borrower is an organization, the type of
organization and any organizational identification number issued to Borrower, if applicable.
Borrower shall have possession of the Collateral, except where expressly otherwise provided
in this Agreement or where Bank chooses to perfect its security interest by possession in
addition to the filing of a financing statement. Where Collateral is in possession of a
third party bailee, Borrower shall take such steps as Bank reasonably
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">requests for Bank to (i)&nbsp;subject to Section&nbsp;7.10 below, obtain an acknowledgment, in
form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral
for the benefit of Bank, and (ii)&nbsp;obtain &#147;control&#148; of any Collateral consisting of
investment property, deposit accounts, letter-of-credit rights or electronic chattel paper
(as such items and the term &#147;control&#148; are defined in Revised Article&nbsp;9 of the Code) by
causing the securities intermediary or depositary institution or issuing bank to execute a
control agreement in form and substance satisfactory to Bank. Borrower will not create any
chattel paper without placing a legend on the chattel paper acceptable to Bank indicating
that Bank has a security interest in the chattel paper. Borrower from time to time may
deposit with Bank specific cash collateral to secure specific Obligations; Borrower
authorizes Bank to hold such specific balances in pledge and to decline to honor any drafts
thereon or any request by Borrower or any other Person to pay or otherwise transfer any part
of such balances for so long as the specific Obligations are outstanding. Borrower shall
take such other actions as Bank requests to perfect its security interests granted under
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>REPRESENTATIONS AND WARRANTIES</B></FONT>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower represents and warrants as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.1 Due Organization and Qualification</B>. Borrower and each Subsidiary is a corporation
or limited liability company duly existing under the laws of the state in which it is
organized and qualified and licensed to do business in any state in which the conduct of its
business or its ownership of property requires that it be so qualified, except where the
failure to do so would not reasonably be expected to cause a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.2 Due Authorization; No Conflict</B>. The execution, delivery, and performance of the
Loan Documents are within Borrower&#146;s powers, have been duly authorized, and are not in
conflict with nor constitute a breach of any provision contained in Borrower&#146;s Articles of
Incorporation or Bylaws, or Articles of Organization or Operating Agreement, as applicable,
nor will they constitute an event of default under any material agreement by which Borrower
is bound. Borrower is not in default under any agreement by which it is bound, except to
the extent such default would not reasonably be expected to cause a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.3 Collateral</B>. Borrower has rights in or the power to transfer the Collateral, and
its title to the Collateral is free and clear of Liens, adverse claims, and restrictions on
transfer or pledge except for Permitted Liens. Other than movable items of personal
property such as laptop computers, all Collateral having an aggregate book value in excess
of $100,000, is located solely in the Collateral States. The Eligible Accounts are bona
fide existing obligations. The property or services giving rise to such Eligible Accounts
has been delivered or rendered to the account debtor or its agent for immediate shipment to
and unconditional acceptance by the account debtor. Borrower has not received notice of
actual or imminent Insolvency Proceeding of any account debtor whose accounts are included
in any Borrowing Base Certificate as an Eligible Account. All Inventory is in all material
respects of good and merchantable quality, free
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">from all material defects, except for Inventory for which adequate reserves have been
made. Except as set forth in the Schedule, none of the Borrower&#146;s Cash is maintained or
invested with a Person other than Bank or Bank&#146;s affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.4 Intellectual Property Collateral</B>. Borrower is the sole owner of the Intellectual
Property Collateral, except for licenses granted by Borrower to its customers in the
ordinary course of business. To the best of Borrower&#146;s knowledge, each of the Copyrights,
Trademarks and Patents is valid and enforceable, and no part of the Intellectual Property
Collateral has been judged invalid or unenforceable, in whole or in part, and no claim has
been made to Borrower that any part of the Intellectual Property Collateral violates the
rights of any third party except to the extent such claim would not reasonably be expected
to cause a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.5 Name; Location of Chief Executive Office</B>. Except as disclosed in the Schedule,
Borrower has not done business under any name other than that specified on the signature
page hereof, and its exact legal name is as set forth in the first paragraph of this
Agreement. The chief executive office of Borrower is located at the address indicated in
Section&nbsp;10 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.6 Litigation</B>. Except as set forth in the Schedule, there are no actions or
proceedings pending by or against Borrower or any Subsidiary before any court or
administrative agency that could reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.7 No Material Adverse Change in Financial Statements</B>. All consolidated and
consolidating financial statements related to Borrower and any Subsidiary that are delivered
by Borrower to Bank fairly present in all material respects Borrower&#146;s consolidated and
consolidating financial condition as of the date thereof and Borrower&#146;s consolidated and
consolidating results of operations for the period then ended. There has not been a
material adverse change in the consolidated or in the consolidating financial condition of
Borrower since the date of the most recent of such financial statements submitted to Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.8 Solvency, Payment of Debts</B>. Borrower is able to pay its debts (including trade
debts) as they mature; the fair saleable value of Borrower&#146;s assets (including goodwill
minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left
with unreasonably small capital after the transactions contemplated by this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.9 Compliance with Laws and Regulations</B>. Borrower and each Subsidiary have met the minimum
funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No
event has occurred resulting from Borrower&#146;s failure to comply with ERISA that is reasonably likely
to result in Borrower&#146;s incurring any liability that could have a Material Adverse Effect.
Borrower is not an &#147;investment company&#148; or a company &#147;controlled&#148; by an &#147;investment company&#148; within
the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one
of its important activities, in the business of extending credit for the
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8.<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">purpose of purchasing or carrying margin stock (within the meaning of Regulations T and
U of the Board of Governors of the Federal Reserve System). Borrower has not violated any
statutes, laws, ordinances or rules applicable to it, the violation of which would
reasonably be expected to have a Material Adverse Effect. Parent and each Subsidiary have
filed or caused to be filed all tax returns required to be filed, and have paid, or have
made adequate provision for the payment of, all taxes reflected therein except those being
contested in good faith with adequate reserves under GAAP or where the failure to file such
returns or pay such taxes would not reasonably be expected to have a Material Adverse
Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.10 Subsidiaries</B>. Borrower does not own any stock, partnership interest or other
equity securities of any Person, except for Permitted Investments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.11 Government Consents</B>. Borrower and each Subsidiary have obtained all consents,
approvals and authorizations of, made all declarations or filings with, and given all
notices to, all governmental authorities that are necessary for the continued operation of
Borrower&#146;s business as currently conducted, except where the failure to do so would not
reasonably be expected to cause a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.12 Inbound Licenses</B>. Except as disclosed on the Schedule, Borrower is not a party
to, nor is bound by, any material license or other agreement important for the conduct of
Borrower&#146;s business that prohibits or otherwise restricts Borrower from granting a security
interest in Borrower&#146;s interest in such license or agreement, other than this Agreement or
the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.13 Full Disclosure</B>. No representation, warranty or other statement made by Borrower
in any certificate or written statement furnished to Bank taken together with all such
certificates and written statements furnished to Bank contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the statements
contained in such certificates or statements not misleading in light of the circumstances in
which they were made, it being recognized by Bank that the projections and forecasts
provided by Borrower in good faith and based upon reasonable assumptions are not to be
viewed as facts and that actual results during the period or periods covered by any such
projections and forecasts may differ from the projected or forecasted results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6. </B><FONT style="font-variant: SMALL-CAPS"><B>AFFIRMATIVE COVENANTS</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower covenants that, until payment in full of all outstanding Obligations, and for so long
as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the
following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.1 Good Standing and Government Compliance</B>. Borrower shall maintain its and each of
its Subsidiaries&#146; corporate existence and good standing in the respective states of
formation, shall maintain qualification and good standing in each other jurisdiction in
which the failure to so qualify would reasonably be expected to have a Material Adverse
Effect, and shall furnish to Bank the organizational identification
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">number issued to Borrower by the authorities of the state in which Borrower is
organized, if applicable. Borrower shall meet, and shall cause each Subsidiary to meet, the
minimum funding requirements of ERISA with respect to any employee benefit plans subject to
ERISA. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes,
laws, ordinances and government rules and regulations to which it is subject, and shall
maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses,
approvals and agreements, the loss of which or failure to comply with which would reasonably
be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.2 Financial Statements, Reports, Certificates</B>. Parent shall deliver to Bank: (i)&nbsp;as
soon as available, but in any event within 30&nbsp;days after the end of each calendar month, a
company prepared consolidated and consolidating balance sheet and income statement covering
Borrower&#146;s operations during such period, in a form reasonably acceptable to Bank and
certified by a Responsible Officer; (ii)&nbsp;as soon as available, but in any event within 180
days after the end of Borrower&#146;s fiscal year, audited (or such other level as is required by
the Investment Agreement) consolidated and consolidating financial statements of Borrower
prepared in accordance with GAAP, consistently applied, together with an opinion which is
either unqualified, qualified only for going concern so long as Borrower&#146;s investors provide
additional equity as needed or otherwise consented to in writing by Bank on such financial
statements of an independent certified public accounting firm reasonably acceptable to Bank;
(iii)&nbsp;a 2009&nbsp;monthly, Board approved operating plan, including income statement and balance
sheet, no later than December&nbsp;15, 2008; (iv)&nbsp;annual budget approved by Borrower&#146;s Board of
Directors as soon as available but not later than 60&nbsp;days after the beginning of the
applicable fiscal year; (v)&nbsp;if applicable, copies of all statements, reports and notices
sent or made available generally by Borrower to its security holders or to any holders of
Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission; (vi)&nbsp;promptly upon receipt of notice thereof, a report of any legal
actions pending or threatened in writing against Borrower or any Subsidiary that could
reasonably be expected to result in damages or costs to Borrower or any Subsidiary of
$250,000 or more; (vii)&nbsp;promptly upon receipt, each management letter prepared by Borrower&#146;s
independent certified public accounting firm regarding Borrower&#146;s management control
systems, (viii)&nbsp;such budgets, sales projections, operating plans or other financial
information generally prepared by Borrower in the ordinary course of business as Bank may
reasonably request from time to time; and (ix)&nbsp;within 30&nbsp;days of the last day of each fiscal
quarter, a report signed by Borrower, in form reasonably acceptable to Bank, listing any
applications or registrations that Borrower has made or filed in respect of any Patents,
Copyrights or Trademarks and the status of any outstanding applications or registrations, as
well as any material change in Borrower&#146;s Intellectual Property Collateral, including but
not limited to any subsequent ownership right of Borrower in or to any Trademark, Patent or
Copyright not specified in Exhibits A, B, and C of any Intellectual Property Security
Agreement delivered to Bank by Borrower in connection with this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Within 30&nbsp;days after the last day of each month, Parent shall deliver to Bank a
Borrowing Base Certificate signed by a Responsible Officer in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">substantially the form of Exhibit&nbsp;D hereto, together with aged listings by invoice date
of accounts receivable and accounts payable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Within 30&nbsp;days after the last day of each month, Parent shall deliver to Bank with
the monthly financial statements a Compliance Certificate certified as of the last day of
the applicable month and signed by a Responsible Officer in substantially the form of
Exhibit&nbsp;E hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>As soon as possible and in any event within 3 Business Days after becoming aware of
the occurrence or existence of an Event of Default hereunder, a written statement of a
Responsible Officer setting forth details of the Event of Default, and the action which
Borrower has taken or proposes to take with respect thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Bank (through any of its officers, employees, or agents) shall have the right, upon
reasonable prior notice, from time to time during Borrower&#146;s usual business hours but no
more than twice a year (unless an Event of Default has occurred and is continuing), to
inspect Borrower&#146;s Books and to make copies thereof and to check, test, inspect, audit and
appraise the Collateral at Borrower&#146;s expense in order to verify Borrower&#146;s financial
condition or the amount, condition of, or any other matter relating to, the Collateral.
Notwithstanding the foregoing, Borrower and Bank agree that Bank shall complete its initial
audit of the Collateral within 30&nbsp;days following the date hereof, and Borrower shall take
all reasonable steps in connection therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower may deliver to Bank on an electronic basis any certificates, reports or information
required pursuant to this Section&nbsp;6.2, and Bank shall be entitled to rely on the information
contained in the electronic files, provided that Bank in good faith believes that the files were
delivered by a Responsible Officer. Borrower shall include a submission date on any certificates
and reports to be delivered electronically.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.3 Inventory and Equipment; Returns</B>. Borrower shall keep all Inventory and Equipment
in good and merchantable condition, free from all material defects except for Inventory and
Equipment (i)&nbsp;sold in the ordinary course of business, and (ii)&nbsp;for which adequate reserves
have been made, in all cases in the United States and such other locations as to which
Borrower gives prior written notice. Returns and allowances, if any, as between Borrower
and its account debtors shall be on the same basis and in accordance with the usual
customary practices of Borrower, as they exist on the Closing Date. Borrower shall promptly
notify Bank of all returns and recoveries and of all disputes and claims involving inventory
having a book value of more than $100,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.4 Taxes</B>. Borrower shall make, and cause each Subsidiary to make, due and timely
payment or deposit of all material federal, state, and local taxes, assessments, or
contributions required of it by law, including, but not limited to, those laws concerning
income taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Bank,
on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such
payments or deposits and any appropriate certificates attesting
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make
any payment if the amount or validity of such payment is contested in good faith by
appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower
or such Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.5 Insurance</B>. Borrower, at its expense, shall (i)&nbsp;keep the Collateral insured against
loss or damage, and (ii)&nbsp;maintain liability and other insurance, in each case in as
ordinarily insured against by other owners in businesses similar to Borrower&#146;s. All such
policies of insurance shall be in such form, with such companies, and in such amounts as
reasonably satisfactory to Bank. All policies of property insurance shall contain a
lender&#146;s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an
additional loss payee, and all liability insurance policies shall show Bank as an additional
insured and specify that the insurer must give at least 20&nbsp;days notice to Bank before
canceling its policy for any reason. Within 30&nbsp;days of the Closing Date, Borrower shall
cause to be furnished to Bank a copy of its policies or certificate of insurance including
any endorsements covering Bank or showing Bank as an additional insured. Upon Bank&#146;s
request, Borrower shall deliver to Bank certified copies of the policies of insurance and
evidence of all premium payments. Proceeds payable under any casualty policy will, at
Borrower&#146;s option, be payable to Borrower to replace the property subject to the claim,
provided that any such replacement property shall be deemed Collateral in which Bank has
been granted a first priority security interest, provided that if an Event of Default has
occurred and is continuing, all proceeds payable under any such policy shall, at Bank&#146;s
option, be payable to Bank to be applied on account of the Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.6 </B><B>&#147;Primary Depository&#148;. </B>Subject to the provisions of Section&nbsp;3.1(l), Borrower within
30&nbsp;days of the Closing Date shall maintain all its depository and operating accounts with
Bank and its primary investment accounts with Bank or Bank&#146;s affiliates; provided that
Borrower shall be permitted to maintain up to $200,000 in Cash at Comerica Bank for a period
of up to 60&nbsp;days.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.7 Financial/Other Covenants.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Funding Milestone. </B>On or before November&nbsp;30, 2008, Parent shall provide Bank with
a signed term sheet with respect to the issuance of at least $4,000,000 of Parent&#146;s
convertible debt or equity securities (inclusive of $1,000,000 in convertible debt issued
and outstanding to Austin Ventures as of the Closing Date), which transaction shall close on
or before January&nbsp;15, 2009 (the &#147;Funding Milestone&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Adjusted Liquidity Ratio. </B>Following Parent&#146;s achievement of the Funding Milestone,
Borrowers shall at all times, but reported monthly, maintain an Adjusted Liquidity Ratio of
1.00 to 1.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;EBITDA to Plan</B>. Following Parent&#146;s achievement of the Funding Milestone, measured
monthly and calculated on a rolling three month basis, Borrowers shall maintain certain
levels of GAAP EBITDA, as set forth in the table immediately below. Levels for subsequent
fiscal years shall be determined based upon
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Borrowers&#146; monthly operating plan which shall be provided to Bank no later than
December&nbsp;15 of the then-current fiscal year.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($942,155</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($896,094</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($922,208</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($882,540</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($801,047</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($677,976</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($576,930</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($539,821</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($496,644</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($425,773</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($336,870</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($226,512</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($347,080</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.8 Registration of Intellectual Property Rights</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Borrower shall promptly give Bank written notice of any applications or
registrations of intellectual property rights filed with the United States Patent and
Trademark Office, including the date of such filing and the registration or application
numbers, if any.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Borrower shall (i)&nbsp;give Bank not less than 5&nbsp;days prior written notice of the
filing of any applications or registrations with the United States Copyright Office,
including the title of such intellectual property rights to be registered, as such title
will appear on such applications or registrations, and the date such applications or
registrations will be filed; (ii)&nbsp;prior to the filing of any such applications or
registrations, execute such documents as Bank may reasonably request for Bank to maintain
its perfection in such intellectual property rights to be registered by Borrower; (iii)&nbsp;upon
the request of Bank, either deliver to Bank or file such documents simultaneously with the
filing of any such applications or registrations; (iv)&nbsp;upon filing any such applications or
registrations, promptly provide Bank with a copy of such applications or registrations
together with any exhibits, evidence of the filing of any documents requested by Bank to be
filed for Bank to maintain the perfection and priority of its security interest in such
intellectual property rights, and the date of such filing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>Borrower shall execute and deliver such additional instruments and documents from
time to time as Bank shall reasonably request to perfect and maintain the perfection and
priority of Bank&#146;s security interest in the Intellectual Property Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Borrower shall (i)&nbsp;protect, defend and maintain the validity and enforceability of
the trade secrets, Trademarks, Patents and Copyrights, (ii)&nbsp;use
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">commercially reasonable efforts to detect infringements of the Trademarks, Patents and
Copyrights and promptly advise Bank in writing of material infringements detected and (iii)
not allow any material Trademarks, Patents or Copyrights to be abandoned, forfeited or
dedicated to the public without the written consent of Bank, which shall not be unreasonably
withheld.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>Bank shall have the right, but not the obligation, to take, at Borrower&#146;s sole
expense, any actions that Borrower is required under this Section&nbsp;6.8 to take but which
Borrower fails to take, after 15&nbsp;days&#146; notice to Borrower. Borrower shall reimburse and
indemnify Bank for all reasonable costs and reasonable expenses incurred in the reasonable
exercise of its rights under this Section&nbsp;6.8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.9 Inbound Licensors. </B>Prior to entering into or becoming bound by any material
inbound license or agreement, Borrower shall provide written notice to Bank of the material
terms of such license or agreement with a description of its likely impact on Borrower&#146;s
business or financial condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.10 Further Assurances</B>. At any time and from time to time Borrower shall execute and
deliver such further instruments and take such further action as may reasonably be requested
by Bank to effect the purposes of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7. </B><FONT style="font-variant: SMALL-CAPS"><B>NEGATIVE COVENANTS</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower covenants and agrees that, so long as any credit hereunder shall be available and
until the outstanding Obligations are paid in full or for so long as Bank may have any commitment
to make any Credit Extensions, Borrower will not do any of the following without Bank&#146;s prior
written consent, which shall not be unreasonably withheld:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.1 Dispositions</B>. Convey, sell, lease, license, transfer or otherwise dispose of
(collectively, to &#147;Transfer&#148;), or permit any of its Subsidiaries to Transfer, all or any
part of its business or property, or move cash balances on deposit with Bank to accounts
opened at another financial institution, other than Permitted Transfers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.2 Change in Name, Location, Executive Office, or Executive Management; Change in
Business; Change in Fiscal Year; Change in Control</B>. Change its name or the state of
Borrower&#146;s formation or relocate its chief executive office without 30&nbsp;days prior written
notification to Bank; replace or suffer the departure of its chief executive officer or
chief financial officer without delivering written notification to Bank within 10&nbsp;days; fail
to appoint an interim replacement or fill a vacancy in the position of chief executive
officer or chief financial officer for more than 30 consecutive days; take action to
liquidate, wind up, or otherwise cease to conduct business in the ordinary course; engage in
any business, or permit any of its Subsidiaries to engage in any business, other than or
reasonably related or incidental to the businesses currently engaged in by Borrower; change
its fiscal year end; have a Change in Control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.3 Mergers or Acquisitions</B>. Merge or consolidate, or permit any of its Subsidiaries
to merge or consolidate, with or into any other business organization (other than mergers or
consolidations of a Subsidiary into another Subsidiary or into
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person except where (a)&nbsp;each
of the following conditions is applicable: (i)&nbsp;the consideration paid in connection with
such transactions (including assumption of liabilities) does not in the aggregate exceed
$250,000 during any fiscal year, (ii)&nbsp;no Event of Default has occurred, is continuing or
would exist after giving effect to such transactions, (iii)&nbsp;such transactions do not result
in a Change in Control, and (iv)&nbsp;Borrower is the surviving entity; or (b)&nbsp;the Obligations
are repaid in full concurrently with the closing of any merger or consolidation of Borrower
in which Borrower is not the surviving entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.4 Indebtedness</B>. Create, incur, assume, guarantee or be or remain liable with respect
to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness,
or prepay any Indebtedness or take any actions which impose on Borrower an obligation to
prepay any Indebtedness, except (i)&nbsp;Indebtedness to Bank or (ii)&nbsp;the conversion of
Subordinated Indebtedness to equity securities and the payment of cash in lieu of issuing
fractional shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.5 Encumbrances</B>. Create, incur, assume or allow any Lien with respect to its
property, or assign or otherwise convey any right to receive income, including the sale of
any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or
covenant to any other Person (other than (i)&nbsp;the licensors of in-licensed property with
respect to such property or (ii)&nbsp;the lessors of specific equipment or lenders financing
specific equipment with respect to such leased or financed equipment that Borrower in the
future will refrain from creating, incurring, assuming or allowing any Lien with respect to
any of Borrower&#146;s property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.6 Distributions</B>. Pay any dividends or make any other distribution or payment on
account of or in redemption, retirement or purchase of any capital stock, except that
Borrower may (i)&nbsp;repurchase the stock of former employees pursuant to stock repurchase
agreements as long as an Event of Default does not exist prior to such repurchase or would
not exist after giving effect to such repurchase, (ii)&nbsp;repurchase the stock of former
employees pursuant to stock repurchase agreements by the cancellation of indebtedness owed
by such former employees to Borrower regardless of whether an Event of Default exists.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.7 Investments</B>. Directly or indirectly acquire or own, or make any Investment in or
to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments,
or maintain or invest any of its Investment Property with a Person other than Bank or Bank&#146;s
Affiliates or permit any Subsidiary to do (unless, in each case, Borrower is in compliance
with the terms of Section&nbsp;6.6) so unless such Person has entered into a control agreement
with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to
be a party to, or be bound by, an agreement that restricts such Subsidiary from paying
dividends or otherwise distributing property to Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.8 Transactions with Affiliates</B>. Directly or indirectly enter into or permit to exist
any material transaction with any Affiliate of Borrower except for (i)
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">transactions that are in the ordinary course of Borrower&#146;s business, upon fair and
reasonable terms that are no less favorable to Borrower than would be obtained in an arm&#146;s
length transaction with a non-affiliated Person and (ii)&nbsp;transactions between each Borrower
that are not otherwise prohibited under Article&nbsp;7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.9 Subordinated Debt</B>. Make any payment in respect of any Subordinated Debt, or permit
any of its Subsidiaries to make any such payment, except in compliance with the terms of
such Subordinated Debt, or amend any provision affecting Bank&#146;s rights contained in any
documentation relating to the Subordinated Debt without Bank&#146;s prior written consent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.10 Inventory and Equipment</B>. Store the Inventory or the Equipment of a book value in
excess of $100,000 with a bailee, warehouseman, collocation facility or similar third party
unless the third party has been notified of Bank&#146;s security interest and Bank (a)&nbsp;has
received an acknowledgment from the third party that it is holding or will hold the
Inventory or Equipment for Bank&#146;s benefit or (b)&nbsp;is in possession of the warehouse receipt,
where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the
ordinary course of business and for movable items of personal property having an aggregate
book value not in excess of $100,000, and except for such other locations as Bank may
approve in writing, Borrower shall keep the Inventory and Equipment only at the location set
forth in Section&nbsp;10 and such other locations of which Borrower gives Bank prior written
notice and as to which Bank is able to take such actions as may be necessary to perfect its
security interest or to obtain a bailee&#146;s acknowledgment of Bank&#146;s rights in the Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.11 No Investment Company; Margin Regulation</B>. Become or be controlled by an
&#147;investment company,&#148; within the meaning of the Investment Company Act of 1940, or become
principally engaged in, or undertake as one of its important activities, the business of
extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds
of any Credit Extension for such purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8. </B><FONT style="font-variant: SMALL-CAPS"><B>EVENTS OF DEFAULT</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any one or more of the following events shall constitute an Event of Default by Borrower under
this Agreement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1 Payment Default</B>. If Borrower fails to pay any of the Obligations when due and such
failure is not cured within 3 Business Days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.2 Covenant Default</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>If Borrower fails to perform any obligation under Sections&nbsp;6.2 (financial
reporting), 6.4 (taxes), 6.5 (insurance), 6.6 (primary accounts) or 6.7 (financial
covenants), or violates any of the covenants contained in Article&nbsp;7 of this Agreement; or
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>If Borrower fails or neglects to perform or observe any other material term,
provision, condition, covenant contained in this Agreement, in any of the Loan Documents, or
in any other present or future agreement between Borrower and Bank and as to any default
under such other term, provision, condition or covenant that can be cured, has failed to
cure such default within 15&nbsp;days after Borrower receives notice thereof or any officer of
Borrower becomes aware thereof; provided, however, that if the default cannot by its nature
be cured within the 15&nbsp;day period or cannot after diligent attempts by Borrower be cured
within such 15&nbsp;day period, and such default is likely to be cured within a reasonable time,
then Borrower shall have an additional reasonable period (which shall not in any case exceed
30&nbsp;days) to attempt to cure such default, and within such reasonable time period the failure
to have cured such default shall not be deemed an Event of Default but no Credit Extensions
will be made.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.3 Material Adverse Change</B>. If there occurs any circumstance or any circumstances
which would reasonably be expected to have a Material Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.4 Attachment</B>. If any material portion of Borrower&#146;s assets is attached, seized,
subjected to a writ or distress warrant, or is levied upon, or comes into the possession of
any trustee, receiver or person acting in a similar capacity and such attachment, seizure,
writ or distress warrant or levy has not been removed, discharged or rescinded within 10
days, or if Borrower is enjoined, restrained, or in any way prevented by court order from
continuing to conduct all or any material part of its business affairs, or if a judgment or
other claim becomes a lien or encumbrance upon any material portion of Borrower&#146;s assets, or
if a notice of lien, levy, or assessment is filed of record with respect to any material
portion of Borrower&#146;s assets by the United States Government, or any department, agency, or
instrumentality thereof, or by any state, county, municipal, or governmental agency, and the
same is not paid within ten days after Borrower receives notice thereof, provided that none
of the foregoing shall constitute an Event of Default where such action or event is stayed
or an adequate bond has been posted pending a good faith contest by Borrower (provided that
no Credit Extensions will be made during such cure period);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.5 Insolvency</B>. If Borrower becomes insolvent, or if an Insolvency Proceeding is
commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is
not dismissed or stayed within 30&nbsp;days (provided that no Credit Extensions will be made
prior to the dismissal of such Insolvency Proceeding);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.6 Other Agreements</B>. If there is a default or other failure to perform in any
agreement to which Borrower is a party with a third party or parties resulting in a right by
such third party or parties, whether or not exercised, to accelerate the maturity of any
Indebtedness in an amount in excess of $350,000 or that would reasonably be expected to have
a Material Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.7 Judgments</B>. If a final, uninsured judgment or judgments for the payment of money in
an amount, individually or in the aggregate, of at least $350,000 shall be rendered against
Borrower and shall remain unsatisfied and unstayed for a period
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">of 10&nbsp;days (provided that no Credit Extensions will be made prior to the satisfaction
or stay of the judgment); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.8 Misrepresentations</B>. If any material misrepresentation or material misstatement
exists now or hereafter in any warranty or representation set forth herein or in any
certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to
induce Bank to enter into this Agreement or any other Loan Document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9. </B><FONT style="font-variant: SMALL-CAPS"><B>BANK&#146;S RIGHTS AND REMEDIES</B></FONT>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.1 Rights and Remedies</B>. Upon the occurrence and during the continuance of an Event of
Default, Bank may, at its election, without notice of its election and without demand, do
any one or more of the following, all of which are authorized by Borrower:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Declare all Obligations, whether evidenced by this Agreement, by any of the other
Loan Documents, or otherwise, immediately due and payable (provided that upon the occurrence
of an Event of Default described in Section&nbsp;8.5 (insolvency), all Obligations shall become
immediately due and payable without any action by Bank);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Demand that Borrower (i)&nbsp;deposit cash with Bank in an amount equal to the amount
of any Letters of Credit remaining undrawn, as collateral security for the repayment of any
future drawings under such Letters of Credit, and (ii)&nbsp;pay in advance all Letter of Credit
fees scheduled to be paid or payable over the remaining term of the Letters of Credit, and
Borrower shall promptly deposit and pay such amounts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>Cease advancing money or extending credit to or for the benefit of Borrower under
this Agreement or under any other agreement between Borrower and Bank;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Settle or adjust disputes and claims directly with account debtors for amounts,
upon terms and in whatever order that Bank reasonably considers advisable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>Make such payments and do such acts as Bank considers necessary or reasonable to
protect its security interest in the Collateral. Borrower agrees to assemble the Collateral
if Bank so requires, and to make the Collateral available to Bank as Bank may designate.
Borrower authorizes Bank to enter the premises where the Collateral is located, to take and
maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or
compromise any encumbrance, charge, or lien which in Bank&#146;s determination appears to be
prior or superior to its security interest and to pay all expenses incurred in connection
therewith. With respect to any of Borrower&#146;s owned premises, Borrower hereby grants Bank a
license to enter into possession of such premises and to occupy the same, without charge, in
order to exercise any of Bank&#146;s rights or remedies provided herein, at law, in equity, or
otherwise;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>Set off and apply to the Obligations any and all (i)&nbsp;balances and deposits of
Borrower held by Bank, and (ii)&nbsp;indebtedness at any time owing to or for the credit or the
account of Borrower held by Bank;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g) </B>Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
advertise for sale, and sell (in the manner provided for herein) the Collateral. Bank is
hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower&#146;s labels, patents, copyrights, rights of use of any
name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any
property of a similar nature, as it pertains to the Collateral, in completing production of,
advertising for sale, and selling any Collateral and, in connection with Bank&#146;s exercise of
its rights under this Section&nbsp;9.1, Borrower&#146;s rights under all licenses and all franchise
agreements shall inure to Bank&#146;s benefit;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h) </B>Sell the Collateral at either a public or private sale, or both, by way of one or
more contracts or transactions, for cash or on terms, in such manner and at such places
(including Borrower&#146;s premises) as Bank determines is commercially reasonable, and apply any
proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may
sell the Collateral without giving any warranties as to the Collateral. Bank may
specifically disclaim any warranties of title or the like. This procedure will not be
considered adversely to affect the commercial reasonableness of any sale of the Collateral.
If Bank sells any of the Collateral upon credit, Borrower will be credited only with
payments actually made by the purchaser, received by Bank, and applied to the indebtedness
of the purchaser. If the purchaser fails to pay for the Collateral, Bank may resell the
Collateral and Borrower shall be credited with the proceeds of the sale;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) </B>Bank may credit bid and purchase at any public sale;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j) </B>Apply for the appointment of a receiver, trustee, liquidator or conservator of the
Collateral, without notice and without regard to the adequacy of the security for the
Obligations and without regard to the solvency of Borrower, any guarantor or any other
Person liable for any of the Obligations; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(k) </B>Any deficiency that exists after disposition of the Collateral as provided above
will be paid immediately by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank may comply with any applicable state or federal law requirements in connection with a
disposition of the Collateral and compliance will not be considered adversely to affect the
commercial reasonableness of any sale of the Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.2 Power of Attorney</B>. Effective only upon the occurrence and during the continuance
of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank&#146;s
designated officers, or employees) as Borrower&#146;s true and lawful attorney to: (a)&nbsp;send
requests for verification of Accounts or notify account debtors of Bank&#146;s security interest
in the Accounts; (b)&nbsp;endorse Borrower&#146;s name on any checks or other forms of payment or
security that may come into Bank&#146;s possession; (c)
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">sign Borrower&#146;s name on any invoice or bill of lading relating to any Account, drafts
against account debtors, schedules and assignments of Accounts, verifications of Accounts,
and notices to account debtors; (d)&nbsp;dispose of any Collateral; (e)&nbsp;make, settle, and adjust
all claims under and decisions with respect to Borrower&#146;s policies of insurance; (f)&nbsp;settle
and adjust disputes and claims respecting the accounts directly with account debtors, for
amounts and upon terms which Bank determines to be reasonable; (g)&nbsp;enter into a short-form
intellectual property security agreement consistent with the terms of this Agreement for
recording purposes only or modify, in its sole discretion, any intellectual property
security agreement entered into between Borrower and Bank without first obtaining Borrower&#146;s
approval of or signature to such modification by amending Exhibits A, B, and C, thereof, as
appropriate, to include reference to any right, title or interest in any Copyrights, Patents
or Trademarks acquired by Borrower after the execution hereof or to delete any reference to
any right, title or interest in any Copyrights, Patents or Trademarks in which Borrower no
longer has or claims to have any right, title or interest; and (h)&nbsp;file, in its sole
discretion, one or more financing or continuation statements and amendments thereto,
relative to any of the Collateral; provided Bank may exercise such power of attorney to sign
the name of Borrower on any of the documents described in clauses (g)&nbsp;and (h)&nbsp;above,
regardless of whether an Event of Default has occurred. The appointment of Bank as
Borrower&#146;s attorney in fact, and each and every one of Bank&#146;s rights and powers, being
coupled with an interest, is irrevocable until all of the Obligations have been fully repaid
and performed and Bank&#146;s obligation to provide advances hereunder is terminated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.3 Accounts Collection</B>. At any time after the occurrence and during the continuation
of an Event of Default, Bank may notify any Person owing funds to Borrower of Bank&#146;s
security interest in such funds and verify the amount of such Account. Borrower shall
collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank&#146;s
trustee, and immediately deliver such payments to Bank in their original form as received
from the account debtor, with proper endorsements for deposit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.4 Bank Expenses</B>. If Borrower fails to pay any amounts or furnish any required proof
of payment due to third persons or entities, as required under the terms of this Agreement,
then Bank may do any or all of the following after reasonable notice to Borrower: (a)&nbsp;make
payment of the same or any part thereof; and/or (b)&nbsp;set up such reserves under the Formula
Revolving Line as Bank deems necessary to protect Bank from the exposure created by such
failure; or (c)&nbsp;obtain and maintain insurance policies of the type discussed in Section&nbsp;6.5 of
this Agreement, and take any action with respect to such policies as Bank deems prudent.
Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be
immediately due and payable, and shall bear interest at the then applicable rate hereinabove
provided, and shall be secured by the Collateral. Any payments made by Bank shall not
constitute an agreement by Bank to make similar payments in the future or a waiver by Bank
of any Event of Default under this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.5 Bank&#146;s Liability for Collateral</B>. Bank has no obligation to clean up or otherwise
prepare the Collateral for sale. All risk of loss, damage or destruction of the Collateral
shall be borne by Borrower.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->20.<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.6 No Obligation to Pursue Others</B>. Bank has no obligation to attempt to satisfy the
Obligations by collecting them from any other person liable for them and Bank may release,
modify or waive any collateral provided by any other Person to secure any of the
Obligations, all without affecting Bank&#146;s rights against Borrower. Borrower waives any
right it may have to require Bank to pursue any other Person for any of the Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.7 Remedies Cumulative</B>. Bank&#146;s rights and remedies under this Agreement, the Loan
Documents, and all other agreements shall be cumulative. Bank shall have all other rights
and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No
exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank
of any Event of Default on Borrower&#146;s part shall be deemed a continuing waiver. No delay by
Bank shall constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be
effective unless made in a written document signed on behalf of Bank and then shall be
effective only in the specific instance and for the specific purpose for which it was given.
Borrower expressly agrees that this Section&nbsp;9.7 may not be waived or modified by Bank by
course of performance, conduct, estoppel or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.8 Demand; Protest</B>. Except as otherwise provided in this Agreement, Borrower waives
demand, protest, notice of protest, notice of default or dishonor, notice of payment and
nonpayment and any other notices relating to the Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>NOTICES</B></FONT>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise provided in this Agreement, all notices or demands by any party relating to
this Agreement or any other agreement entered into in connection herewith shall be in writing and
(except for financial statements and other informational documents which may be sent by first-class
mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery
service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower
or to Bank, as the case may be, at its addresses set forth below:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to NetStreams, Inc.:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NetStreams, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3600 W. Parmer Lane, Suite&nbsp;100</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78727</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Peter Radekevich</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FAX: (512)&nbsp;977-9398</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to NetStreams, LLC:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NetStreams, LLC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3600 W. Parmer Lane, Suite&nbsp;100</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78727</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Peter Radekevich</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FAX: (512)&nbsp;977-9398</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->21.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to Bank:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Square 1 Bank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">406 Blackwell Street, Suite&nbsp;240</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Durham, North Carolina 27701</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Loan Operations Manager</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FAX: (919)&nbsp;314-3080</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">with a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Square 1 Bank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">600 Congress Ave., Suite&nbsp;1200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Austin, TX 78701</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: David McLaughlin</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FAX: (512)&nbsp;439-2829</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER</B></FONT>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement shall be governed by, and construed in accordance with, the internal laws of the
State of North Carolina, without regard to principles of conflicts of law. Jurisdiction shall lie
in the State of North Carolina. All disputes, controversies, claims, actions and similar
proceedings arising with respect to Borrower&#146;s account or any related agreement or transaction
shall be brought in the General Court of Justice of North Carolina sitting in Durham County, North
Carolina or the United States District Court for the Middle District of North Carolina, except as
provided below with respect to arbitration of such matters. BANK AND BORROWER EACH ACKNOWLEDGE
THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH OF THEM,
AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY
LITIGATION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED INSTRUMENT OR LOAN DOCUMENT
OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTION OF ANY OF THEM. THESE PROVISIONS SHALL NOT BE
DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A
WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. If the jury waiver set forth in this Section&nbsp;11 is
not enforceable, then any dispute, controversy, claim, action or similar proceeding arising out of
or relating to this Agreement, the Loan Documents or any of the transactions contemplated therein
shall be settled by final and binding arbitration held in Durham County, North Carolina in
accordance with the then current Commercial Arbitration Rules of the American Arbitration
Association by one arbitrator appointed in accordance with those rules. The arbitrator shall apply
North Carolina law to the resolution of any dispute, without reference to rules of conflicts of law
or rules of statutory arbitration. Judgment upon any award resulting from arbitration may be
entered into and enforced by any state or federal court having jurisdiction thereof.
Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for
preliminary or interim equitable relief, or to compel arbitration in accordance with this Section.
The costs and expenses
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the arbitration, including without limitation, the arbitrator&#146;s fees and expert witness fees,
and reasonable attorneys&#146; fees, incurred by the parties to the arbitration may be awarded to the
prevailing party, in the discretion of the arbitrator, or may be apportioned between the parties in
any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one
party is to pay for all (or a share) of such costs and expenses, both parties shall share equally
in the payment of the arbitrator&#146;s fees as and when billed by the arbitrator.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>GENERAL PROVISIONS</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.1 Successors and Assigns</B>. This Agreement shall bind and inure to the benefit of the
respective successors and permitted assigns of each of the parties and shall bind all
persons who become bound as a debtor to this Agreement; provided, however, that neither this
Agreement nor any rights hereunder may be assigned by Borrower without Bank&#146;s prior written
consent, which consent may be granted or withheld in Bank&#146;s sole discretion. Bank shall
have the right without the consent of or notice to Borrower to sell, assign, transfer,
negotiate, or grant participation in all or any part of, or any interest in, Bank&#146;s
obligations, rights and benefits hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.2 Indemnification</B>. Borrower shall defend, indemnify and hold harmless Bank and its
officers, employees, and agents against: (a)&nbsp;all obligations, demands, claims, and
liabilities claimed or asserted by any other party in connection with the transactions
contemplated by this Agreement; and (b)&nbsp;all losses or Bank Expenses in any way suffered,
incurred, or paid by Bank, its officers, employees and agents as a result of or in any way
arising out of, following, or consequential to transactions between Bank and Borrower
whether under this Agreement, or otherwise (including without limitation reasonable
attorneys fees and expenses), except for losses caused by Bank&#146;s gross negligence or willful
misconduct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.3 Time of Essence</B>. Time is of the essence for the performance of all obligations
set forth in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.4 Severability of Provisions</B>. Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.5 Amendments in Writing, Integration. </B>All amendments to or terminations of this
Agreement or the other Loan Documents must be in writing. All prior agreements,
understandings, representations, warranties, and negotiations between the parties hereto
with respect to the subject matter of this Agreement and the other Loan Documents, if any,
are merged into this Agreement and the Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.6 Counterparts</B>. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and delivered,
shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Agreement. Executed copies of the signature pages of this Agreement
sent by facsimile or transmitted electronically in Portable Document Format (&#147;PDF&#148;), or any
similar format, shall be treated as originals,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">fully binding and with full legal force and effect, and the parties waive any rights
they may have to object to such treatment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.7 Survival</B>. All covenants, representations and warranties made in this Agreement
shall continue in full force and effect so long as any Obligations remain outstanding or
Bank has any obligation to make any Credit Extension to Borrower. The obligations of
Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and
liabilities described in Section&nbsp;12.2 shall survive until all applicable statute of
limitations periods with respect to actions that may be brought against Bank have run.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.8 Confidentiality</B>. In handling any confidential information, Bank and all employees
and agents of Bank shall exercise the same degree of care that Bank exercises with respect
to its own proprietary information of the same types to maintain the confidentiality of any
non-public information thereby received or received pursuant to this Agreement except that
disclosure of such information may be made (i)&nbsp;to the subsidiaries or Affiliates of Bank or
Borrower in connection with their present or prospective business relations with Borrower,
(ii)&nbsp;to prospective transferees or purchasers of any interest in the Credit Extensions,
provided that they have entered into a comparable confidentiality agreement in favor of
Borrower and have delivered a copy to Borrower, (iii)&nbsp;as required by law, regulations, rule
or order, subpoena, judicial order or similar order, (iv)&nbsp;as may be required in connection
with the examination, audit or similar investigation of Bank and (v)&nbsp;as Bank may determine
in connection with the enforcement of any remedies hereunder. Confidential information
hereunder shall not include information that either: (a)&nbsp;is in the public domain or in the
knowledge or possession of Bank when disclosed to Bank, or becomes part of the public domain
after disclosure to Bank through no fault of Bank; or (b)&nbsp;is disclosed to Bank by a third
party, provided Bank does not have actual knowledge that such third party is prohibited from
disclosing such information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.&nbsp;</B><FONT style="font-variant: SMALL-CAPS"><B>CO-BORROWER PROVISIONS</B></FONT>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.1 Primary Obligation</B>. This Agreement is a primary and original obligation of each
Borrower and shall remain in effect notwithstanding future changes in conditions, including
any change of law or any invalidity or irregularity in the creation or acquisition of any
Obligations or in the execution or delivery of any agreement between Bank and any Borrower.
Each Borrower shall be liable for existing and future Obligations as fully as if all of all
Credit Extensions were advanced to such Borrower. Bank may rely on any certificate or
representation made by any Borrower as made on behalf of, and binding on, all Borrowers,
including without limitation Disbursement Request Forms, Borrowing Base Certificates and
Compliance Certificates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.2 Enforcement of Rights</B>. Borrowers are jointly and severally liable for the
Obligations and Bank may proceed against one or more of the Borrowers to enforce the
Obligations without waiving its right to proceed against any of the other Borrowers.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->24.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.3 Borrowers as Agents</B>. Each Borrower appoints the other Borrower as its agent with
all necessary power and authority to give and receive notices, certificates or demands for
and on behalf of both Borrowers, to act as disbursing agent for receipt of any Credit
Extensions on behalf of each Borrower and to apply to Bank on behalf of each Borrower for
Credit Extensions, any waivers and any consents. This authorization cannot be revoked, and
Bank need not inquire as to each Borrower&#146;s authority to act for or on behalf of Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.4 Subrogation and Similar Rights</B>. Notwithstanding any other provision of this
Agreement or any other Loan Document, each Borrower irrevocably waives all rights that it
may have at law or in equity (including, without limitation, any law subrogating the
Borrower to the rights of Bank under the Loan Documents) to seek contribution,
indemnification, or any other form of reimbursement from any other Borrower, or any other
Person now or hereafter primarily or secondarily liable for any of the Obligations, for any
payment made by the Borrower with respect to the Obligations in connection with the Loan
Documents or otherwise and all rights that it might have to benefit from, or to participate
in, any security for the Obligations as a result of any payment made by the Borrower with
respect to the Obligations in connection with the Loan Documents or otherwise. Any
agreement providing for indemnification, reimbursement or any other arrangement prohibited
under this Section&nbsp;14.4 shall be null and void. If any payment is made to a Borrower in
contravention of this Section&nbsp;14.4, such Borrower shall hold such payment in trust for Bank
and such payment shall be promptly delivered to Bank for application to the Obligations,
whether matured or unmatured.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.5 Waivers of Notice</B>. Except as otherwise provided in this Agreement, each Borrower
waives notice of acceptance hereof; notice of the existence, creation or acquisition of any
of the Obligations; notice of an Event of Default; notice of the amount of the Obligations
outstanding at any time; notice of intent to accelerate; notice of acceleration; notice of
any adverse change in the financial condition of any other Borrower or of any other fact
that might increase the Borrower&#146;s risk; presentment for payment; demand; protest and notice
thereof as to any instrument; default; and all other notices and demands to which the
Borrower would otherwise be entitled. Each Borrower waives any defense arising from any
defense of any other Borrower, or by reason of the cessation from any cause whatsoever of
the liability of any other Borrower. Bank&#146;s failure at any time to require strict
performance by any Borrower of any provision of the Loan Documents shall not waive, alter or
diminish any right of Bank thereafter to demand strict compliance and performance therewith.
Nothing contained herein shall prevent Bank from foreclosing on the Lien of any deed of
trust, mortgage or other security instrument, or exercising any rights available thereunder,
and the exercise of any such rights shall not constitute a legal or equitable discharge of
any Borrower. Each Borrower also waives any defense arising from any act or omission of
Bank that changes the scope of the Borrower&#146;s risks hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.6 Subrogation Defenses</B>. Each Borrower hereby waives any defense based on impairment
or destruction of its subrogation or other rights against any other Borrower and waives all
benefits which might otherwise be available to it under
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->25.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">any statutory or common law suretyship defenses or marshalling rights, now and
hereafter in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.7 Right to Settle, Release</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>The liability of Borrowers hereunder shall not be diminished by (i)&nbsp;any agreement,
understanding or representation that any of the Obligations is or was to be guaranteed by
another Person or secured by other property, or (ii)&nbsp;any release or unenforceability,
whether partial or total, of rights, if any, which Bank may now or hereafter have against
any other Person, including another Borrower, or property with respect to any of the
Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Without affecting the liability of any Borrower hereunder, Bank may (i)&nbsp;compromise,
settle, renew, extend the time for payment, change the manner or terms of payment, discharge
the performance of, decline to enforce, or release all or any of the Obligations with
respect to a Borrower, (ii)&nbsp;grant other indulgences to a Borrower in respect of the
Obligations, (iii)&nbsp;modify in any manner any documents relating to the Obligations with
respect to a Borrower, (iv)&nbsp;release, surrender or exchange any deposits or other property
securing the Obligations, whether pledged by a Borrower or any other Person, or (v)
compromise, settle, renew, or extend the time for payment, discharge the performance of,
decline to enforce, or release all or any obligations of any guarantor, endorser or other
Person who is now or may hereafter be liable with respect to any of the Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.8 Subordination</B>. All indebtedness of a Borrower now or hereafter arising held by
another Borrower is subordinated to the Obligations and the Borrower holding the
indebtedness shall take all actions reasonably requested by Lender to effect, to enforce and
to give notice of such subordination, provided that any such indebtedness may be repaid to
the applicable Borrower unless an Event of Default exists.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">********
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date
first above written.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U><B>BORROWERS</B></U><B>:</B><BR>
<BR>
<BR>
NETSTREAMS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Peter Radekevich</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Title:&nbsp;COO/CFO</TD>
    <TD></TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NETSTREAMS, LLC<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Peter Radekevich
</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Title:&nbsp;COO/CFO</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U><B>BANK</B></U><B>:</B><BR>
<BR>
<BR>
SQUARE 1 BANK<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Authorized Signatory</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Title:&nbsp;SVP</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->27.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT A</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DEFINITIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Accounts&#148; means all presently existing and hereafter arising accounts, contract rights, payment
intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease
of goods (including, without limitation, the licensing of software and other technology) or the
rendering of services by Borrower and any and all credit insurance, guaranties, and other security
therefore, as well as all merchandise returned to or reclaimed by Borrower and Borrower&#146;s Books
relating to any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Adjusted Liquidity&#148; means Cash in Bank, plus 80% of the most recently reported Eligible Accounts,
plus 10% (up to a maximum of $300,000) of the most recently reported Inventory held less than 90
Days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Adjusted Liquidity Ratio&#148; means the ratio of Adjusted Liquidity to outstanding Indebtedness to
Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Advance&#148; or &#147;Advances&#148; means a cash advance or cash advances under the Formula Revolving Line.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Affiliate&#148; means, with respect to any Person, any Person that owns or controls directly or
indirectly such Person, any Person that controls or is controlled by or is under common control
with such Person, and each of such Person&#146;s senior executive officers, directors, and general
partners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Ancillary Services&#148; means any of the following products or services requested by Borrower and
approved by Bank under the Formula Revolving Line, including, without limitation, Automated
Clearing House transactions, corporate credit card services, FX Contracts, Letters of Credit, or
other treasury management services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Ancillary Services Sublimit&#148; means a sublimit for Ancillary Services under the Formula Revolving
Line not to exceed $200,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Availability End Date&#148; means May&nbsp;12, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Bank Expenses&#148; means all reasonable costs or expenses (including reasonable attorneys&#146; fees and
expenses) incurred in connection with the preparation, negotiation, administration, and enforcement
of the Loan Documents; reasonable Collateral audit fees; and Bank&#146;s reasonable attorneys&#146; fees and
expenses (whether generated in-house or by outside counsel) incurred in amending, enforcing or
defending the Loan Documents (including fees and expenses of appeal), incurred before, during and
after an Insolvency Proceeding, whether or not suit is brought.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Borrower&#146;s Books&#148; means all of Borrower&#146;s books and records including: ledgers; records
concerning Borrower&#146;s assets or liabilities, the Collateral, business operations or financial
condition; and all computer programs, or tape files, and the equipment, containing such
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Borrowing Base&#148; means an amount equal to 80% (the &#147;Advance Rate&#148;) of Eligible Accounts, as
determined by Bank with reference to the most recent Borrowing Base Certificate delivered by
Parent; provided that, in Bank&#146;s sole discretion, the Advance Rate may be increased to 85% of as a
result of the inclusion of certain Accounts which are insured by Borrower&#146;s credit insurance policy
satisfactory to Bank in its sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Business Day&#148; means any day that is not a Saturday, Sunday, or other day on which banks in the
State of North Carolina are authorized or required to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Cash&#148; means unrestricted cash and cash equivalents.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Change in Control&#148; shall mean a transaction other than a bona fide equity financing or series of
financings on terms and from investors reasonably acceptable to Bank in which any &#147;person&#148; or
&#147;group&#148; (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934)
becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under the Securities Exchange Act of
1934), directly or indirectly, of a sufficient number of shares of all classes of stock then
outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such
&#147;person&#148; or &#147;group&#148; to elect a majority of the Board of Directors of Borrower, who did not have
such power before such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Closing Date&#148; means the date of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Code&#148; means the North Carolina Uniform Commercial Code as amended or supplemented from time to
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Collateral&#148; means the property described on Exhibit&nbsp;B attached hereto and all Negotiable
Collateral and Intellectual Property Collateral to the extent not described on Exhibit&nbsp;B, except
to the extent any such property (i)&nbsp;is nonassignable by its terms without the consent of the
licensor thereof or another party (but only to the extent such prohibition on transfer is
enforceable under applicable law, including, without limitation, &#167;25-9-406 and &#167;25-9-408 of the
Code), (ii)&nbsp;the granting of a security interest therein is contrary to applicable law, provided
that upon the cessation of any such restriction or prohibition, such property shall automatically
become part of the Collateral, (iii)&nbsp;constitutes the capital stock of a controlled foreign
corporation (as defined in the IRC), in excess of 65% of the voting power of all classes of capital
stock of such controlled foreign corporations entitled to vote, or (iv)&nbsp;property (including any
attachments, accessions or replacements) that is subject to a Lien that is permitted pursuant to
clause (c)&nbsp;of the definition of Permitted Liens, if the grant of a security interest with respect
to such property pursuant to this Agreement would be prohibited by the agreement creating such
Permitted Lien or would otherwise constitute a default thereunder, provided, that such property
will be deemed &#147;Collateral&#148; hereunder upon the termination and release of such Permitted Lien.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Collateral State&#148; means the state or states where the Collateral is located, which is Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Contingent Obligation&#148; means, as applied to any Person, any direct or indirect liability,
contingent or otherwise, of that Person with respect to (i)&nbsp;any indebtedness, lease, dividend,
letter of credit or other obligation of another, including, without limitation, any such obligation
directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that
Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii)&nbsp;any
obligations with respect to undrawn letters of credit, corporate credit cards or merchant services
issued for the account of that Person; and (iii)&nbsp;all obligations arising under any interest rate,
currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement,
or other agreement or arrangement designated to protect a Person against fluctuation in interest
rates, currency exchange rates or commodity prices; provided, however, that the term &#147;Contingent
Obligation&#148; shall not include endorsements for collection or deposit in the ordinary course of
business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the
stated or determined amount of the primary obligation in respect of which such Contingent
Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof as determined by such Person in good faith; provided, however, that such amount
shall not in any event exceed the maximum amount of the obligations under the guarantee or other
support arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Copyrights&#148; means any and all copyright rights, copyright applications, copyright registrations
and like protections in each work or authorship and derivative work thereof, whether published or
unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing,
created, acquired or held.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Credit Extension&#148; means each Advance, Term Loan, or any other extension of credit, by Bank to or
for the benefit of Borrower hereunder.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->2.<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Eligible Accounts&#148; means those Accounts that arise in the ordinary course of Borrower&#146;s
business that comply with all of Borrower&#146;s representations and warranties to Bank set forth in
Section&nbsp;5.3; provided, that Bank may change the Advance Rate and the standards of eligibility by
giving Borrower 10&nbsp;days prior written notice. Unless otherwise agreed to by Bank, Eligible
Accounts shall not include the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Account balances that the account debtor has failed to pay in full within 90&nbsp;days of
invoice date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Account credit balances greater than 90&nbsp;days from invoice date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>Accounts with respect to an account debtor, 25% of whose Accounts the account debtor
has failed to pay within 90&nbsp;days of invoice date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Accounts with respect to an account debtor, including the account debtor&#146;s
subsidiaries and Affiliates, whose total obligations to Borrower exceed 25% of all Accounts
(the &#147;Concentration Limit&#148;), to the extent such obligations exceed the aforementioned
percentage, except as approved in writing by Bank; provided that the Concentration Limit with
respect to accounts of AVAD shall be 50% upon Bank&#146;s completion of satisfactory due diligence
thereon;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>Accounts with respect to which the account debtor does not have its principal place
of business in the United States, except for Eligible Foreign Accounts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>Accounts with respect to which the account debtor is the United States or any
department, agency, or instrumentality of the United States, except for Accounts of the
United States if the payee has assigned its payment rights to Bank and the assignment has
been acknowledged under the Assignment of Claims Act of 1940 (31 U.S.C. 3727);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g) </B>Accounts with respect to which Borrower is liable to the account debtor for goods
sold or services rendered by the account debtor to Borrower, but only to the extent of any
amounts owing to the account debtor against amounts owed to Borrower;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h) </B>Accounts with respect to which the account debtor is an officer, employee, agent,
Subsidiary or Affiliate of Borrower;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) </B>Accounts with respect to which goods are placed on consignment, guaranteed sale,
sale or return, sale on approval, bill and hold, demo or promotional, or other terms by
reason of which the payment by the account debtor may be conditional;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j) </B>&#147;Advanced Billings,&#148; i.e., accounts that have not yet been billed to the account
debtor or that relate to deposits (such as good faith deposits) or other property of the
account debtor held by Borrower for the performance of services or delivery of goods which
Borrower has not yet performed or delivered;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(k) </B>Accounts with respect to which the account debtor disputes liability or makes any
claim with respect thereto as to which Bank believes, in its sole discretion, that there may
be a basis for dispute (but only to the extent of the amount subject to such dispute or
claim), or is subject to any Insolvency Proceeding, or becomes insolvent, or goes out of
business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(l) </B>Accounts the collection of which Bank reasonably determines after inquiry and
consultation with Borrower to be doubtful;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(m) </B>Retentions and hold-backs; and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(n) </B>&#147;Progress Billings,&#148; i.e., accounts that are billed based on project milestones and
not on actual time and materials bases.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Eligible Foreign Accounts&#148; means Accounts with respect to which the account debtor does not have
its principal place of business in the United States and that are (i)&nbsp;supported by one or more
letters of credit in an amount and of a tenor, and issued by a financial institution, acceptable to
Bank, (ii)&nbsp;insured by the Export Import Bank of the United States, (iii)&nbsp;generated by an account
debtor with its principal place of business in Canada, provided that the Bank has perfected its
security interest in the appropriate Canadian province, or (iv)&nbsp;approved by Bank on a case-by-case
basis. All Eligible Foreign Accounts must be calculated in U.S. Dollars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Equipment&#148; means all present and future machinery, equipment, tenant improvements, furniture,
fixtures, vehicles, tools, parts and attachments in which Borrower has any interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;ERISA&#148; means the Employee Retirement Income Security Act of 1974, as amended, and the regulations
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Event of Default&#148; has the meaning assigned in Article&nbsp;8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Formula Revolving Line&#148; means a Credit Extension of up to $1,000,000 (inclusive of any amounts
outstanding under the Ancillary Services Sublimit); provided that such amount shall be increased to
$2,000,000 upon Parent&#146;s completion of the Funding Milestone set forth in Section&nbsp;6.7 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Formula Revolving Maturity Date&#148; means November&nbsp;11, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Foreign Exchange Reserve Percentage&#148; means a percentage of reserves for FX Contracts as determined
by Bank, in its sole discretion from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;FX Contracts&#148; means contracts between Borrower and Bank for foreign exchange transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;GAAP&#148; means generally accepted accounting principles, consistently applied, as in effect from time
to time in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Indebtedness&#148; means (a)&nbsp;all indebtedness for borrowed money or the deferred purchase price of
property or services, including without limitation reimbursement and other obligations with respect
to surety bonds and letters of credit, (b)&nbsp;all obligations evidenced by notes, bonds, debentures or
similar instruments, (c)&nbsp;all capital lease obligations, and (d)&nbsp;all Contingent Obligations,
including but not limited to any sublimit contained herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Insolvency Proceeding&#148; means any proceeding commenced by or against any Person or entity under any
provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Intellectual Property Collateral&#148; means all of Borrower&#146;s right, title, and interest in and to the
following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(o) </B>Copyrights, Trademarks and Patents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(p) </B>Any and all trade secrets, and any and all intellectual property rights in computer
software and computer software products now or hereafter existing, created, acquired or held;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(q) </B>Any and all design rights which may be available to Borrower now or hereafter
existing, created, acquired or held;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(r) </B>Any and all claims for damages by way of past, present and future
infringement of any of the rights included above, with the right, but not the
obligation, to sue for and collect such damages for said use or infringement of the
intellectual property rights identified above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(s) </B>All licenses or other rights to use any of the Copyrights, Patents or Trademarks,
and all license fees and royalties arising from such use to the extent permitted by such
license or rights;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(t) </B>All amendments, renewals and extensions of any of the Copyrights, Trademarks or
Patents; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(u) </B>All proceeds and products of the foregoing, including without limitation all
payments under insurance or any indemnity or warranty payable in respect of any of the
foregoing.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Inventory&#148; means all present and future inventory in which Borrower has any interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Investment&#148; means any beneficial ownership of (including stock, partnership or limited liability
company interest or other securities) any Person, or any loan, advance or capital contribution to
any Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Investment Agreement&#148; means, collectively, Borrower&#146;s stock purchase and other agreement(s)
pursuant to which Borrower most recently issued its preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;IRC&#148; means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Letter of Credit&#148; means a commercial or standby letter of credit or similar undertaking issued by
Bank at Borrower&#146;s request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Lien&#148; means any mortgage, lien, deed of trust, charge, pledge, security interest or other
encumbrance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Loan Documents&#148; means, collectively, this Agreement, any note or notes executed by Borrower, and
any other document, instrument or agreement entered into in connection with this Agreement, all as
amended or extended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Material Adverse Effect&#148; means a material adverse effect on: (i)&nbsp;the operations, business or
financial condition of Borrower and its Subsidiaries taken as a whole; (ii)&nbsp;the ability of Borrower
to repay the Obligations or otherwise perform its obligations under the Loan Documents; or (iii)
Borrower&#146;s interest in, or the value, perfection or priority of Bank&#146;s security interest in the
Collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Negotiable Collateral&#148; means all of Borrower&#146;s present and future letters of credit of which it is
a beneficiary, drafts, instruments (including promissory notes), securities, documents of title,
and chattel paper, and Borrower&#146;s Books relating to any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Obligations&#148; means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by
Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or
to become due, now existing or hereafter arising, including any interest that accrues after the
commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing
from Borrower to others that Bank may have obtained by assignment or otherwise. Notwithstanding
the foregoing, Borrower&#146;s obligations under any warrants or other equity related rights issued to
Bank shall not be deemed &#147;Obligations&#148; hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Patents&#148; means all patents, patent applications and like protections including without limitation
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of
the same.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Periodic Payments&#148; means all installments or similar recurring payments that Borrower may now or
hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument,
or agreement now or hereafter in existence between Borrower and Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Permitted Indebtedness&#148; means:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Indebtedness of Borrower in favor of Bank arising under this Agreement or any other
Loan Document;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Indebtedness existing on the Closing Date and disclosed in the Schedule;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>Indebtedness not to exceed $350,000 in the aggregate in any fiscal year of Borrower
secured by a lien described in clause (c)&nbsp;of the defined term &#147;Permitted Liens,&#148; provided
such Indebtedness does not exceed at the time it is incurred the lesser of the cost or fair
market value of the property financed with such Indebtedness;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Subordinated Debt;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>Indebtedness to trade creditors incurred in the ordinary course of business
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>Indebtedness that also constitutes an Investment that is otherwise permitted under
clause (e)&nbsp;of the definition of Permitted Investments; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g) </B>Extensions, refinancings and renewals of any items of Permitted Indebtedness,
provided that the principal amount is not increased or the terms modified to impose more
burdensome terms upon Borrower or its Subsidiary, as the case may be.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Permitted Investment&#148; means:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Investments existing on the Closing Date disclosed in the Schedule;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>(i)&nbsp;Marketable direct obligations issued or unconditionally guaranteed by the United
States of America or any agency or any State thereof maturing within one year from the date
of acquisition thereof, (ii)&nbsp;commercial paper maturing no more than one year from the date of
creation thereof and currently having rating of at least A-2 or P-2 from either Standard &#038;
Poor&#146;s Corporation or Moody&#146;s Investors Service, (iii)&nbsp;Bank&#146;s certificates of deposit
maturing no more than one year from the date of investment therein, and (iv)&nbsp;Bank&#146;s money
market accounts; (v)&nbsp;Investments in regular deposit or checking accounts held with Bank or
subject to a control agreement in favor of Bank; and (vi)&nbsp;Investments consistent with any
investment policy adopted by the Borrower&#146;s board of directors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>Repurchases of stock from former employees or directors of Borrower under the terms
of applicable repurchase agreements (i)&nbsp;in an aggregate amount not to exceed $350,000 in any
fiscal year, provided that no Event of Default has occurred, is continuing or would exist
after giving effect to the repurchases, or (ii)&nbsp;in any amount where the consideration for the
repurchase is the cancellation of indebtedness owed by such former employees to Borrower
regardless of whether an Event of Default exists;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Investments accepted in connection with Permitted Transfers;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>(x)&nbsp;Investments of Subsidiaries in or to other Subsidiaries or a Borrower, (y)
Investments by one Borrower in or to another Borrower, and (z)&nbsp;Investments by Borrower in
Subsidiaries (that are not Borrowers) not to exceed $350,000 in the aggregate in any fiscal
year;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>Investments not to exceed $350,000 outstanding in the aggregate at any time
consisting of (i)&nbsp;travel advances and employee relocation loans and other employee loans and
advances in the ordinary course of business, and (ii)&nbsp;loans to employees, officers or
directors relating to the purchase of equity securities of Borrower or its Subsidiaries
pursuant to employee stock purchase plan agreements approved by Borrower&#146;s Board of
Directors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g) </B>Investments in unfinanced capital expenditures in any fiscal year, not to exceed
$350,000;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h) </B>Investments (including debt obligations) received in connection with the bankruptcy
or reorganization of customers or suppliers and in settlement of delinquent obligations of,
and other disputes with, customers or suppliers arising in the ordinary course of Borrower&#146;s
business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) </B>Investments consisting of notes receivable of, or prepaid royalties and other credit
extensions, to customers and suppliers who are not Affiliates, in the ordinary course of
business, provided that this subparagraph (h)&nbsp;shall not apply to Investments of Borrower in
any Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j) </B>Joint ventures or strategic alliances in the ordinary course of Borrower&#146;s business
consisting of the non-exclusive licensing of technology, the development of technology or the
providing of technical support, provided that any cash Investments by Borrower do not exceed
$350,000 in the aggregate in any fiscal year; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(k) </B>Investments permitted under Section&nbsp;7.3.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Permitted Liens&#148; means the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Any Liens existing on the Closing Date and disclosed in the Schedule (excluding
Liens to be satisfied with the proceeds of the Credit Extensions) or arising under this
Agreement, the other Loan Documents, or any other agreement in favor of Bank;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Liens for taxes, fees, assessments or other governmental charges or levies, either
not delinquent or being contested in good faith by appropriate proceedings and for which
Borrower maintains adequate reserves;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>Liens not to exceed $350,000 in the aggregate (i)&nbsp;upon or in any Equipment (other
than Equipment financed by a Credit Extension) acquired or held by Borrower or any of its
Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely
for the purpose of financing the acquisition or lease of such Equipment, or (ii)&nbsp;existing on
such Equipment at the time of its acquisition, in each case provided that the Lien is
confined solely to the property so acquired and improvements thereon, and the proceeds of
such Equipment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>Liens incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by Liens of the type described in clauses (a)&nbsp;through (c)&nbsp;above,
provided that any extension, renewal or replacement Lien shall be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness being extended,
renewed or refinanced does not increase;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>Liens arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under Sections&nbsp;8.4 (attachment)&nbsp;or 8.7 (judgments);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>Liens securing Subordinated Debt;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g) </B>Liens of materialmen, mechanics, warehousemen, carriers, artisans or other
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">similar
Liens arising in the ordinary course of Borrower&#146;s business or by operation of law, which are
not
past due or which are being contested in good faith by appropriate proceedings and for
which reserves have been established in accordance with GAAP;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h) </B>Liens arising from Leases or subleases and licenses and sublicenses granted to
others which do not interfere in any material respect with the business of Borrower and its
Subsidiaries taken as a whole;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) </B>Liens in favor of customs and revenue authorities arising as a matter of law, in the
ordinary course of Borrower&#146;s business, to secure payment of customs duties in connection
with the importation of goods;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j) </B>Liens on insurance proceeds securing the payment of financed insurance premiums;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(k) </B>Deposits in the ordinary course of business under worker&#146;s compensation,
unemployment insurance, social security and other similar laws, or to secure the performance
of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure
indemnity, performance or other similar bonds for the performance of bids, tenders or
contracts (other than for the repayment of borrowed money) or to secure statutory obligations
(other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or
to secure indemnity, performance or other similar bonds; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(l) </B>Subject to Section&nbsp;6.6 of this Agreement, banker&#146;s liens, rights of setoff and
similar liens on deposits made in the ordinary course of business, including all deposit
accounts and securities accounts.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Permitted Transfer&#148; means the conveyance, sale, lease, transfer or disposition by Borrower or any
Subsidiary of:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>Inventory in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>licenses and similar arrangements for the use of the property of Borrower or its
Subsidiaries in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>worn-out, surplus or obsolete Equipment not financed with the proceeds of Credit
Extensions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>grants of security interests and other Liens that constitute Permitted Liens;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>Transfers in connection with transactions otherwise permitted by Article&nbsp;7; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>other assets of Borrower or its Subsidiaries that do not in the aggregate exceed
$350,000 during any fiscal year.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Person&#148; means any individual, sole proprietorship, partnership, limited liability company, joint
venture, trust, unincorporated organization, association, corporation, institution, public benefit
corporation, firm, joint stock company, estate, entity or governmental agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Prime Rate&#148; means the variable rate of interest, per annum, most recently announced by Bank, as
its &#147;prime rate,&#148; whether or not such announced rate is the lowest rate available from Bank.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->8.<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Responsible Officer&#148; means each of the Chief Executive Officer, the Chief Operating Officer, the
Chief Financial Officer, Vice President of Finance and the Controller of Borrower, as well as any
other officer or
employee identified in as an Authorized Officer in the corporate resolution delivered by Borrower
to Bank in connection with this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Schedule&#148; means the schedule of exceptions attached hereto and approved by Bank, if any.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Shares&#148; means (i)&nbsp;sixty-five percent (65%) of the issued and outstanding capital stock, membership
units or other securities owned or held of record by Borrower in any Subsidiary of Borrower which
is not an entity organized under the laws of the United States or territory thereof, and (ii)&nbsp;one
hundred percent (100%) of the issued and outstanding capital stock, membership units or other
securities owned or held of record by Borrower in any Subsidiary of Borrower which is an entity
organized under the laws of the United States or any territory thereof
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;SOS Reports&#148; means the official reports from the Secretaries of State of each Collateral State,
the state where Borrower&#146;s chief executive office is located, the state of Borrower&#146;s formation and
other applicable federal, state or local government offices identifying all current security
interests filed in the Collateral and Liens of record as of the date of such report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Subordinated Debt&#148; means any debt incurred by Borrower that is subordinated in writing to the debt
owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by
Borrower and Bank).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Subsidiary&#148; means any corporation, partnership or limited liability company or joint venture in
which (i)&nbsp;any general partnership interest or (ii)&nbsp;more than 50% of the stock, limited liability
company interest or joint venture of which by the terms thereof ordinary voting power to elect the
Board of Directors, managers or trustees of the entity, at the time as of which any determination
is being made, is owned by Borrower, either directly or through an Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Term Loan Maturity Date&#148; means November&nbsp;12, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Trademarks&#148; means any trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire goodwill of the
business of Borrower connected with and symbolized by such trademarks.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->9.<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>DEBTOR:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>NETSTREAMS, INC.</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>SECURED PARTY:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SQUARE 1 BANK</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT B</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;All personal property of Borrower (herein referred to as &#147;Borrower&#148; or &#147;Debtor&#148;) whether
presently existing or hereafter created or acquired, and wherever located, including, but not
limited to:(a) all accounts (including health-care-insurance receivables), chattel paper (including
tangible and electronic chattel paper), deposit accounts, documents (including negotiable
documents), equipment (including all accessions and additions thereto), financial assets, general
intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles and
software), goods (including fixtures), instruments (including promissory notes), inventory
(including all goods held for sale or lease or to be furnished under a contract of service, and
including returns and repossessions), investment property (including securities and securities
entitlements), letter of credit rights, money, and all of Debtor&#146;s books and records with respect
to any of the foregoing, and the computers and equipment containing said books and records;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any
right to payment. All terms above have the meanings given to them in the North Carolina Uniform
Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the
Uniform Commercial Code-Secured Transactions.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->1.<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>DEBTOR:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>NETSTREAMS, LLC</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>SECURED PARTY:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SQUARE 1 BANK</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT B</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All personal property of Borrower (herein referred to as &#147;Borrower&#148; or &#147;Debtor&#148;) whether presently
existing or hereafter created or acquired, and wherever located, including, but not limited to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>all accounts (including health-care-insurance receivables), chattel paper (including
tangible and electronic chattel paper), deposit accounts, documents (including negotiable
documents), equipment (including all accessions and additions thereto), financial assets, general
intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles and
software), goods (including fixtures), instruments (including promissory notes), inventory
(including all goods held for sale or lease or to be furnished under a contract of service, and
including returns and repossessions), investment property (including securities and securities
entitlements), letter of credit rights, money, and all of Debtor&#146;s books and records with respect
to any of the foregoing, and the computers and equipment containing said books and records;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>any and all cash proceeds and/or noncash proceeds of any of the foregoing, including,
without limitation, insurance proceeds, and all supporting obligations and the security therefor
or for any right to payment. All terms above have the meanings given to them in the North
Carolina Uniform Commercial Code, as amended or supplemented from time to time, including revised
Division 9 of the Uniform Commercial Code-Secured Transactions.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2.<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT C</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>LOAN ADVANCE/PAYDOWN REQUEST FORM</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>&#091;Please refer to New Borrower Kit&#093;</I>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT D</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BORROWING BASE CERTIFICATE</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>&#091;Please refer to New Borrower Kit&#093;</I>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT E<BR>
COMPLIANCE CERTIFICATE</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>&#091;Please refer to New Borrower Kit&#093;</I>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3.<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE OF EXCEPTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Permitted Indebtedness </B>(Exhibit&nbsp;A) &#151;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent has entered into a Note Purchase Agreement with Austin Ventures dated September&nbsp;5,
2008 wherein it has issued to Austin Ventures two convertible notes dated September&nbsp;5, 2008 and
October&nbsp;3, 2008 for $500,000 each. A subordination agreement for such debt shall be entered into
on the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Permitted Investments </B>(Exhibit&nbsp;A) &#151;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;25, 2006 and September&nbsp;22, 2006, the Borrower purchased from Herman Cardenas (the
former President and Chief Executive Officer and current member of the Board of Directors) 416,667
shares of the Borrower&#146;s Series&nbsp;B Redeemable Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Permitted Liens </B>(Exhibit&nbsp;A) &#151;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comerica Bank currently has a lien on all of the Borrower&#146;s assets including intellectual
property assets pursuant to the credit facility in place between Borrower and Comerica Bank, and
such lien shall be terminated immediately after the Closing Date upon the payment in full of
amounts owed to Comerica Bank
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Collateral </B>(Section&nbsp;5.3) &#151;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower maintains bank accounts at Comerica Bank which will be closed pursuant to the terms of
Section&nbsp;6.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Prior Names </B>(Section&nbsp;5.5) &#151; None.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Litigation </B>(Section&nbsp;5.6) &#151; None.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Inbound Licenses </B>(Section&nbsp;5.12) &#151; None.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->1.<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>p16247exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="p16247p1624701.gif" alt="(CLEARONE LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ClearOne Acquires NetStreams</B><BR>
11/3/2009 11:30:00 AM<BR>
<B>- NetStreams Brings ClearOne Audio and Video IP-based Network Solutions -</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SALT LAKE CITY, Nov. 3 /PRNewswire-FirstCall/ &#151; ClearOne (Nasdaq: CLRO), the leading global
provider of audio conferencing solutions today announced it has acquired NetStreams, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NetStreams is the global leader in digital media networks based on Internet Protocol (IP)
technology that is used in a wide variety of applications, including digital signage, corporate
video distribution, network operations centers and government facilities, and large venues in such
industries as hospitality, entertainment and casinos. NetStreams&#146; digital streaming media and
control systems support virtually any number of digital or analog sources, including high
definition audio and video content to nearly an unlimited number of networked endpoints.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the terms of the transaction, ClearOne paid approximately $2&nbsp;million in cash and assumed
approximately $2&nbsp;million of long-term debt. In addition, ClearOne will also make earn out payments
over the next two years based on achievement of certain performance criteria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Headquartered in Austin, Texas, privately-held NetStreams has approximately 20 employees and will
continue to operate from its current location. NetStreams&#146; 2009 revenues are anticipated to be in
excess of $5&nbsp;million. ClearOne reported revenues of $35.7&nbsp;million for its fiscal year ended June
30, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;The transaction represents a perfect fit for both companies, bringing complementary products and
sales channels to both organizations,&#148; said Zee Hakimoglu, president and chief executive officer of
ClearOne. &#147;The combination will change the game by enabling us to provide a comprehensive high
definition audio and video solution to deliver the true promise of audiovisual and IT convergence.
We welcome NetStreams, their partners and customers to the ClearOne family.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Kevin Reinis, formerly the president and chief executive officer of NetStreams, said, &#147;Both
companies have earned stellar reputations for providing the most compelling and complete product
solutions in the broad market we both serve. As the global market increasingly embraces the
benefits of distributing audio, video and data content efficiently through Internet Protocol
technology, the combined company will be an even more powerful industry force.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>About NetStreams</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Founded in 2002, NetStreams delivers the Ultimate IP A/V Experience by distributing high definition
audio and video over TCP/IP networks. NetStreams&#146; products, designed for commercial and residential
use, offer unprecedented levels of performance, functionality, simplicity, reliability, and
expandability. By combining audio/video content, meta-data and control signals into one stream and
incorporating industry standards, NetStreams solutions are a smart investment. NetStreams is
enabling the future of IP A/V &#151; today. For additional information on NetStreams and its innovative
products, please visit www.netstreams.com.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>About ClearOne</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ClearOne is a communications solutions company that develops and sells audio conferencing systems
and other related products for audio, video, and web conferencing applications. The reliability,
flexibility, and performance of ClearOne&#146;s comprehensive solutions create a natural communications
environment, which saves organizations time and money by enabling more effective and efficient
communication. For more information, visit ClearOne&#146;s website at www.clearone.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>This release contains &#147;forward-looking&#148; statements that are based on present circumstances and on
ClearOne&#146;s predictions with respect to events that have not occurred, that may not occur, or that
may occur with different consequences and timing than those now assumed or anticipated. Such
forward-looking statements, including statements regarding the company&#146;s ability to successfully
commercialize newer products and enter new markets, are not guarantees of future performance or
results and involve risks and uncertainties that could cause actual events or results to differ
materially from the events or results</I>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>described in the forward-looking statements. Such forward-looking statements are made only as of
the date of this release and ClearOne assumes no obligation to update forward-looking statements to
reflect subsequent events or circumstances. Readers should not place undue reliance on these
forward-looking statements.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>http://www.b2i.us/irpass.asp?BzID=509&#038;to=ea&#038;s=0</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">Contact: &nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ClearOne Communications, Inc.<BR>
Investor Relations<BR>
(801)&nbsp;303-3555</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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