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<ACCESSION-NUMBER>0000950123-09-017287
<TYPE>10-K
<PUBLIC-DOCUMENT-COUNT>9
<PERIOD>20090331
<FILING-DATE>20090625
<DATE-OF-FILING-DATE-CHANGE>20090625
<FILER>
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<CONFORMED-NAME>AMERICAN CLAIMS EVALUATION INC
<CIK>0000774517
<ASSIGNED-SIC>8300
<IRS-NUMBER>112601199
<STATE-OF-INCORPORATION>NY
<FISCAL-YEAR-END>0331
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<ACT>34
<FILE-NUMBER>000-14807
<FILM-NUMBER>09909980
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<BUSINESS-ADDRESS>
<STREET1>375 N BROADWAY
<STREET2>ONE JERICHO PLAZA
<CITY>JERICHO
<STATE>NY
<ZIP>11753
<PHONE>5169388000
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<STREET1>ONE JERICHO PLAZA
<CITY>JERICHO
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<ZIP>11753
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<DESCRIPTION>FORM 10-K
<TEXT>
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<HEAD>
<TITLE>FORM 10-K</TITLE>
</HEAD>
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<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 10-K</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Mark One)

</DIV>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%"><B>For the fiscal year ended March&nbsp;31, 2009</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>or</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%"><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission file number: 0-14807</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>AMERICAN CLAIMS EVALUATION, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant 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="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">New York
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11-2601199</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">One Jericho Plaza, Jericho, NY
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11753</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: (516)&nbsp;938-8000</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered pursuant to Section&nbsp;12(b) of the Act:</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="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title of each class</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Name of each exchange on which registered</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Common Stock, par value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ Capital Market</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered pursuant to Section&nbsp;12(g) of the Act: None.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule&nbsp;405 of
the Securities Act. Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if the registrant is not required to file reports pursuant to Section&nbsp;13 or
Section 15(d) of the Act. Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for
such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days. Yes <FONT face="Wingdings">&#254;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule&nbsp;405 of Regulation&nbsp;S-T (&#167; 232.405 of this chapter) during the preceding 12&nbsp;months
(or for such shorter period that the registrant was required to submit and post such files). Yes
<FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if disclosure of delinquent filers pursuant to Item&nbsp;405 of Regulation&nbsp;S-K is
not contained herein, and will not be contained, to the best of registrant&#146;s knowledge, in
definitive proxy or information statements incorporated by reference in Part&nbsp;III of this Form 10-K
or any amendment to this Form 10-K. <FONT face="Wingdings">&#254;</FONT>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act. (Check one):
</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="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Large accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">Non-accelerated filer <FONT face="Wingdings">&#111;</FONT><br>(Do not check if a smaller reporting company)</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Smaller reporting company <FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of the
Exchange Act). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The aggregate market value of the registrant&#146;s common stock held by non-affiliates was $763,047,
based on the price at which the common stock was last sold on the NASDAQ Capital Market as of
September&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The number of shares outstanding of the registrant&#146;s common stock as of June&nbsp;24, 2009 was
4,754,900.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>DOCUMENTS INCORPORATED BY REFERENCE</B></DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">None.

</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>





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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Note: </B>As used in this Annual Report on Form 10-K, the terms &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; &#147;our Company&#148; or
any derivative thereof, shall mean American Claims Evaluation, Inc. and its subsidiary, Interactive
Therapy Group Consultants, Inc.
</DIV>
<!-- link2 "Item&nbsp;1. Business" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">American Claims Evaluation, Inc. was incorporated in the State of New York and commenced operations
in April&nbsp;1982. Through March&nbsp;31, 2008, we provided a full range of vocational rehabilitation and
disability management services designed to maximize injured workers&#146; abilities in order to
reintegrate them into their respective communities through our wholly owned subsidiary, RPM
Rehabilitation &#038; Associates, Inc. (&#147;RPM&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the year ended March&nbsp;31, 2008, we had entered into a non-binding letter of intent to sell
all of the outstanding shares of stock of RPM. Accordingly, the results of RPM&#146;s operations were
classified as discontinued operations and except where specific discussions of RPM are made, all
financial information presented in this Annual Report excludes RPM for all periods presented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subsequently, on September&nbsp;12, 2008, we sold RPM for a purchase price of $150,000 in cash, plus an
additional purchase price of up to $150,000 in cash contingent upon the future net earnings of RPM
calculated over the five-year period after the closing of the transaction. Through March&nbsp;31, 2009,
no additional consideration has been earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;12, 2008, we acquired all of the issued and outstanding shares of Interactive Therapy
Group Consultants, Inc. (&#147;ITG&#148;) for $570,000 in cash on the closing date of the transaction. As a
result of subsequent purchase price adjustments and the return of funds from escrow, the resulting
net purchase price was reduced to $174,632. We had been seeking an acquisition to transition into
a new line of business. ITG possesses an opportunity to grow organically in its industry and
through the potential for add-on acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ITG provides a comprehensive range of services to children with developmental delays and
disabilities in New York State and has developed a reputation for providing well-rounded
therapeutic solutions. We work in individual or group settings, in home environments or in centers
(such as day care or schools). With this acquisition, we now operate in the following three main
areas of clinical services and program development:
</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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Early Intervention Program</I>s &#151; services to children from birth through two years of age.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Preschool Programs </I>&#151; services to children from the ages of three to five years of age.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>School Staffing </I>&#151; services to school-age children.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Description of Services</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Early Intervention (&#147;EI&#148;) Programs</I></B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Children with disabilities from birth to two years old are eligible for services under Part&nbsp;C of
the Federal Individuals with Disabilities Education Act (&#147;Part&nbsp;C&#148;). Each state administers its
Part&nbsp;C program as they see fit. Children in the EI program may be referred into the program by a
parent, physician, day care worker or other qualified individual and receive a level of services
appropriate to their disability or developmental delay. All resident children are entitled to a
comprehensive evaluation that assesses their developmental levels. Children who meet the
qualifying criteria for services are eligible for any or all of the following: speech-language
pathology, physical therapy, occupational therapy, special instruction,
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">vision therapy, social work and counseling. We contract with county governments throughout New
York to evaluate and treat children in the EI system.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We offer the following EI services under contracts to various counties based on New York State
Health Department approval:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Core Evaluations: A team of providers evaluates a child in the following five developmental
areas: physical, cognitive, communication, social-emotional, and adaptive behavior. If the child
meets the qualifying criteria, then he/she is referred for direct services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Supplemental Evaluations: A specialized provider evaluates a child for a particular area of
developmental need based on a referral. If the child meets the qualifying criteria, then he/she is
referred for direct services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Home/Community Based Services: Direct EI services based on a child&#146;s Individualized Family
Service Plan (&#147;IFSP&#148;) are delivered by appropriately qualified personnel in the child&#146;s natural
environment. Services may include speech-language therapy, occupational therapy, physical therapy,
special instruction and/or psychology services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Parent/Child Groups: Group EI services based on a child&#146;s IFSP are delivered by appropriately
qualified personnel in the child&#146;s natural environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Family Training: Parents and caregivers are taught about the child&#146;s condition and assisted in
embedding the child&#146;s goals into everyday routines. Services are based on a child&#146;s IFSP and are
delivered by appropriately qualified personnel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Preschool Programs:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Children with disabilities from three to five years old are eligible for services under the state&#146;s
education law. ITG is approved as a special education school under Section&nbsp;4410 of the New York
State Education Law (&#147;NYSED&#148;) to provide special education and related services. We contract with
county governments to provide comprehensive Multi-Disciplinary Evaluations (&#147;MDEs&#148;) for school
districts. Children who meet the qualifying criteria may receive on-going services including those
provided by Special Education Itinerant Teachers (&#147;SEIT&#148;), speech-language pathologists, physical
therapists, occupational therapists, and psychologists.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We offer the following preschool services under contracts with various counties based on NYSED
approval:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> MDEs: A team of providers evaluates a child for any identified areas of concern upon referral
from a school district. Every evaluation must include a psychological battery as well as a social
history and may include any or all of the following: gross motor, fine motor, cognitive,
communication, social-emotional, audiological, and adaptive behavior. If the child meets any of
the qualifying criteria, then he/she is referred for direct services, which are decided at an
Individualized Education Plan (&#147;IEP&#148;) meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Supplemental Evaluations: A specialized provider evaluates a child in a particular area of need
based on a referral. If the child meets the qualifying criteria, then he/she is referred for
direct services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Related Services: Direct services based on a child&#146;s IEP are delivered by appropriately qualified
personnel in a home or preschool setting. Services may include speech-language therapy,
occupational therapy and/or physical therapy.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> SEIT: An appropriately qualified special education teacher will supplement related services in
the home or preschool setting. This is the only service that we provide on a tuition basis. All
other services are provided on a fee-for-service basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>School Staffing Programs:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">School-age children with disabilities or delays may qualify for a host of special education and
related services, which are the responsibility of the school district. Because these services are
mandated, districts are required to provide them. When a district cannot provide the required
service using their own personnel resources, they must contract with vendors to provide them. We
contract with districts and individual schools needing to complement their resources to provide
speech-language pathologists, physical therapists, occupational therapists, special education
teachers, special education coordinators and psychologists. Our school staffing services range in
scope from a few hours per week of a specific service to the outsourcing of an entire special
education department/function, including coordination, compliance, and professional development
services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company had four customers that represented 19%, 15%, 14% and 11% of revenues for the year
ended March&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sales and Marketing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ITG&#146;s President, our regional directors and our regional team leaders establish and maintain
relationships with customers. To supplement their efforts, we use targeted marketing programs,
including direct mail to our customer contacts and to members of professional organizations; public
relations activities; participation in trade shows; newsletters and ongoing customer communication
programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The market for our services is large, fragmented and highly competitive. We expect these
characteristics to persist for the foreseeable future based on the following factors: the expected
growth of this market, the increasing demand for highly skilled licensed professionals and the
relatively low barriers to entry. Certain of our competitors are substantially larger, have
greater financial resources and increased access to licensed professionals. However, with a
relatively low market share in relation to the entire market for our services, we believe there is
room to grow and capture additional market share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulatory Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The services that we provide are subject to a variety of local, state and federal governmental
regulations. The individuals that we utilize to provide our services are subject to licensing and
certification requirements and regulations with respect to their respective professions and their
interaction with children.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are currently exploring alternatives to ITG&#146;s corporate structure concerning non-compliance
issues regarding the practice of certain licensed professions in the State of New York. If a
change in professional practice structure is deemed necessary, we will take all appropriate
measures to assure compliance on a timely basis. Revenues derived from services performed by these
licensed professionals approximate 23% of total revenues for the year ended March&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, our financial reporting, corporate governance , public disclosure and compliance
practices are governed by laws, such as the Sarbanes-Oxley Act of 2002 (&#147;SOX&#148;) and rules and
regulations issued by the Securities and Exchange Commission (&#147;SEC&#148;).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Employees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;31, 2009, we had 153 employees of which 68 were full-time and 85 were per diem. Of
these full-time employees, we have two employees at our executive office in Jericho, New York and
three employees at ITG&#146;s headquarters in East Syracuse, New York. ITG employs 18 people in East
Syracuse, New York, 13 in New York, New York, 19 in Rochester, New York and 13 in Amherst, New
York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To maintain good employee relations and to minimize employee turnover, we offer competitive pay and
provide a full range of employee benefits. We believe that our relationship with all of our
employees is generally good.
</DIV>
<!-- link2 "Item&nbsp;1A. Risk Factors" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1A. Risk Factors.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Forward-Looking Statements</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Form 10-K contains &#147;forward-looking statements&#148; including statements concerning the future of
our industry, business strategy, continued acceptance of our services, market growth, and
dependence on significant customers. These statements can be identified by the use of
forward-looking terminology such as &#147;may,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;estimate,&#148; &#147;continue,&#148; or other
similar words. When considering forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in this Form 10-K. We are a &#147;smaller reporting&#148; company as
defined by Regulation&nbsp;S-K and, as such, we are not required to provide the information contained in
this Item pursuant to Regulation&nbsp;S-K. Accordingly, the risks described in this Form 10-K are not
intended to be all-inclusive and are not the only risks that we face. Additional risks and
uncertainties, not currently known to us or that do not currently appear to be material, may also
materially adversely affect our business, financial condition and/or operating results in the
future. The risk factors noted below and other factors noted throughout this Form 10-K could cause
our actual financial condition or results to differ significantly from those contained in any
forward-looking statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We may not be able to comply with all applicable government regulations.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Legislation has been introduced in the New York State Senate to amend the New York Education Law
in relation to the practice of licensed professionals by EI companies and their employees and to
repeal certain provisions of such related law thereto which currently prohibit corporate practice
of certain licensed professions. Currently, most EI providers in New York State, including our
Company, are not in compliance with the existing laws governing the practice of these licensed
professions. This pending legislation attempts to reconcile conflicting provisions of the New York
Education Law and New York Public Health Law which contemplates that EI companies be organized to
provide a full range of EI program services. We cannot assure that such pending legislation will
be enacted into law and that we will be in substantial compliance with current laws and
regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also cannot assure that we will be able to comply with any future laws and regulations. To the
extent that new regulations are adopted, we will be required to conform our activities in order to
comply with such regulations. Failure to comply with applicable laws and regulations could subject
us to civil remedies, including fines, injunctions, as well as potential criminal sanctions, which
could have a material adverse effect on its business, operations and finances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The industry in which we operate is highly competitive and has relatively low barriers to entry.
Increased competition could result in margin erosion and loss of market share.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our competitors include professional firms, privately held companies, schools and not-for-profit
organizations and associations. Many of our existing competitors have greater financial resources,
larger market share, broader and more diverse professional staffs and/or lower cost structures than
we do -
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /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">which may enable them to establish a stronger competitive position than we have. If we fail to
address competitive developments quickly and effectively, it may affect our ability to maintain our
current market share and/or to expand our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are dependent on our professional staff and we need to hire and retain skilled personnel to
sustain and grow our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our success in recruiting and hiring large numbers of highly-skilled, licensed or otherwise
authorized individuals to offer the multi-disciplinary services required is critical to providing
high quality services. We cannot assure you we will be able to attract and retain the personnel
necessary for the continuing growth of our business. Our inability to attract and retain qualified
personnel could materially adversely affect our ability to maintain and grow our business
significantly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our growth strategy assumes that we will make targeted strategic acquisitions.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A key feature of our growth strategy is strategic acquisitions. We may not be able to maintain our
current rate of growth. If we fail to execute on this strategy, our revenues may not increase and
our ability to achieve and sustain profitability will be impaired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An acquisition strategy is inherently risky. Some of the risks we may face in connection with
acquisitions include: identifying appropriate targets; obtaining necessary financing in an
efficient and timely fashion; negotiating terms that we believe are reasonable; integrating the
operations, technologies, products and personnel of the acquired entities; and maintaining our
focus on our existing business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We may not be able to identify any appropriate targets or acquire them on reasonable terms. Even if
we make strategic acquisitions, we cannot assure investors that our future acquisitions will be
successful and will not adversely affect our business, results of operations or financial
condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We may not be able to achieve or maintain profitability.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have incurred continuing operating losses and may not be able to achieve or maintain
profitability on a quarterly or annual basis. Our ability to achieve or maintain profitability
depends on a number of factors, including our ability to: grow our business through new contracts
and market penetration, attract and hire additional licensed professionals, improve our operating
margins and consummate one or more additional acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our business is subject to the risk of customer concentration.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our revenue is concentrated within a limited number of clients throughout New York State;
municipalities within New York State provide substantial and significant revenue. The continuation
and renewal of our contracts are, among other things, contingent upon the availability of adequate
Federal pass-through funding from the U.S. government. The loss or significant reduction in
government funding as a result of current constraints on the U.S. budget could result in a material
decrease in our revenues, earnings and cash flows. This concentration of customers may also impact
our overall exposure to credit risk, either positively or negatively, in that our customers may be
similarly affected by changes in economic or other conditions in New York State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, since most of our revenue is generated under our contracts with municipalities within
New York State, the non-renewal of any contracts or non-payment or significant delay in payment of
invoices by any or all of such clients would likely have a material adverse effect upon our
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company had four customers that represented 19%, 15%, 14% and 11% of revenues for the year
ended March&nbsp;31, 2009.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our operating results are materially impacted by the seasonality of our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is impacted by seasonality with respect to the school year. We anticipate that our
revenue will be at its lowest in the second quarter of our fiscal year (which include the months of
July and August) when schools are traditionally not in session. During this period, we are faced
with paying salaries for full time staff that will be under-utilized. In addition, the timing of
family vacations during the summer months also complicates the scheduling of services for EI
services and for preschool children. As such, we recognize that the results of operations for the
second quarterly period of our fiscal year may not be indicative of the results for any other
quarter or for the full year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our investment in recorded goodwill resulting from our acquisition could be impaired as a result of
future business conditions, requiring us to record substantial write-downs that would reduce our
operating income.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have goodwill and intangible assets of $750,000 recorded on our balance sheet as of March&nbsp;31,
2009. We will evaluate the recoverability of recorded goodwill annually, or when evidence of
potential impairment exists. The annual impairment test is based on several factors requiring
judgment. Changes in our operating performance or business conditions, in general, could result in
an impairment of goodwill which could be material to our results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we fail to maintain an effective system of internal controls, we may not be able to accurately
report our financial results or prevent fraud. As a result, current and potential shareholders
could lose confidence in our financial reporting, which could harm our business and the trading
price of our shares.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;31, 2009, based on current requirements and our public float, we were not required to
comply with the requirements of Section&nbsp;404 of SOX (&#147;SOX 404&#148;) which require our independent
auditors to opine on the effectiveness of our internal controls over financial reporting. Under
current law, and our current public float, we expect to be subject to this requirement for our
fiscal year ending March&nbsp;31, 2010. If we fail to correct any deficiencies in the design or
operating effectiveness of internal controls over financial reporting or fail to prevent fraud,
current and potential shareholders could lose confidence in our financial reporting, which could
harm our business and adversely impact the trading price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our common stock could be delisted from the NASDAQ Capital Market.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Recently, the price of our common stock, par value $.01 (the &#147;Shares&#148;), has been trading below
$1.00 per share. If the price of our Shares declines below $1.00 per share for 30 consecutive
trading days, we may fail to meet NASDAQ&#146;s maintenance criteria, which may result in the delisting
of our Shares from the NASDAQ Capital Market. NASDAQ has recently announced that it is suspending
its $1.00 minimum closing bid price rule until July&nbsp;20, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event of such delisting, trading, if any, in our Shares may then continue to be conducted in
the non-NASDAQ over-the-counter market in what are commonly referred to as the electronic bulletin
board and the ''pink sheets.&#146;&#146; As a result, an investor may find it more difficult to dispose of or
obtain accurate quotations as to the market value of our Shares. In addition, we would be subject
to a rule promulgated by the SEC that, if we fail to meet criteria set forth in such rule, imposes
various requirements on broker-dealers who sell securities governed by the rule to persons other
than established customers and accredited investors. For these types of transactions, the
broker-dealer must make a special suitability determination for the purchaser and have received the
purchaser&#146;s written consent to the transactions prior to the sale. Consequently, the rule may have
a material adverse effect on the ability of broker-dealers to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /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">sell our securities, which may materially affect the ability of shareholders to sell our securities
in the secondary market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A delisting from the NASDAQ Capital Market will also make us ineligible to use Form S-3 to register
a future sale of our Shares or to register the resale of our securities with the SEC, thereby
making it more difficult and expensive for us to register our Shares or other securities and raise
additional capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The price of our Shares has reflected a great deal of volatility, including a significant decrease
over the past few years. The volatility may mean that, at times, our stockholders may be unable to
resell their Shares at or above the price at which they acquired them.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">From April&nbsp;1, 2007 to March&nbsp;31, 2009, the price per share of our Shares has ranged from a high of
$2.23 to a low of $0.23. The price of our Shares has been, and may continue to be, highly volatile
and subject to wide fluctuations. The market value of our Shares has declined in the past, in part,
due to our operating performance. In the future, broad market and industry factors may decrease the
market price of our Shares, regardless of our actual operating performance. Recent declines in the
market price of our Shares and in broad capital markets could affect our access to capital. As a
result of any such declines, many shareholders have been or may become unable to resell their
Shares at or above the price at which they acquired them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Changes to financial accounting standards may affect our reported results of operations.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We prepare our financial statements to conform to United States generally accepted accounting
principles (&#147;GAAP&#148;). GAAP is subject to interpretation by the American Institute of Certified
Public Accountants, the SEC and various bodies formed to interpret and create appropriate
accounting policies. A change in those policies can have a significant effect on our reported
results and may even affect our reporting of transactions that were completed before a change is
announced. Accounting rules affecting many aspects of our business, including rules relating to
accounting for acquisitions, asset impairments, revenue recognition, and stock option grants, have
recently been revised or are currently under review. Changes to those rules or current
interpretation of those rules may have a material adverse effect on our reported financial results
or on the way we conduct our business.
</DIV>
<!-- link2 "Item&nbsp;1B. Unresolved Staff Comments" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1B. Unresolved Staff Comments.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not applicable.
</DIV>
<!-- link2 "Item&nbsp;2. Properties" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. Properties.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our executive offices are located in Jericho, New York where we lease office space under a
seven-year non-cancelable operating sublease with American Para Professional Systems, Inc.
(&#147;APPS&#148;), an entity under the control of our Company&#146;s Chairman of the Board, which expires on
November&nbsp;30, 2011. Basic rent under the sublease has been established as a pass-through with our
cost being fixed at a cost equal to the pro-rated rent payable for the subleased space by APPS to
the building&#146;s landlord.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ITG leases regional operating offices in the following cities in New York: East Syracuse, New York
City, Rochester and Amherst. The terms of these leases range from two to five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe that, in general, our existing facilities are adequate to meet our present needs. We
believe that if we were unable to renew a lease on any of our facilities, we could find alternative
space at competitive market rates and relocate our operations to such new location without any
disruption to our business.
</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">
<!-- link2 "Item&nbsp;3. Legal Proceedings" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Legal Proceedings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are not engaged in any litigation.
</DIV>
<!-- link2 "Item&nbsp;4. Submission of Matters to a Vote of Security Holders" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Submission of Matters to a Vote of Security Holders.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No matters were submitted to a vote of security holders during the fourth quarter of the year ended
March&nbsp;31, 2009.
</DIV>
<!-- link1 "PART II" -->

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

<!-- link2 "Item&nbsp;5. Market for Registrant&#146;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Market for Registrant&#146;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Shares trades on the NASDAQ Capital Market under the symbol &#147;AMCE&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the range of high and low sales prices for our Shares for each
quarter during the period April&nbsp;1, 2007 through March&nbsp;31, 2009:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">High</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Low</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fiscal 2008:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended June&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended September&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended March&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fiscal 2009:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended September&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Quarter ended March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The number of holders of our Shares was approximately 426 on June&nbsp;24, 2009, computed by the number
of record holders, inclusive of holders for whom Shares are being held in the name of brokerage
houses and clearing agencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Dividends</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have never paid a cash dividend and do not presently anticipate doing so in the foreseeable
future, but expect to retain earnings, if any, for use in our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recent Sales of Unregistered Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Use of Proceeds</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Company Purchases of its Equity Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the year ended March&nbsp;31, 2009, we purchased 6,900 Shares for an aggregate price
of for an aggregate purchase price of $5,432 in private transactions.
</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">
<!-- link2 "Item&nbsp;6. Selected Financial Data" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Selected Financial Data.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are a &#147;smaller reporting company&#148; as defined by Regulation&nbsp;S-K and, as such, we are not required
to provide the information contained in this item pursuant to Regulation&nbsp;S-K.
</DIV>
<!-- link2 "Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operation" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operation.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Critical Accounting Policies and Estimates</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We make estimates and assumptions in the preparation of our consolidated financial statements in
conformity with GAAP. We evaluate these estimates on an ongoing basis. We base these estimates on
historical experience and on various other assumptions that we believe are reasonable under the
circumstances, the results of which form the basis for making judgments about the carrying values
of our assets and liabilities. Actual results may differ significantly from those estimates under
different assumptions and conditions. (See Forward-Looking Statements in Item&nbsp;1A). We consider the
following accounting policies to be the most critical due to the estimation process involved in
each.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Allowance for Doubtful Accounts</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We monitor collections and payments and maintain an allowance for doubtful accounts based upon our
understanding of ITG&#146;s historical experience and any specific collection issues that we have
identified. While such credit losses have been within our expectations and the allowances
established, we cannot guarantee that we will continue to experience the same credit loss rates
that were experienced in the past. Measurement of such losses requires consideration of historical
loss experience, including the need to adjust for current conditions, and judgments about the
probable effects of relevant observable data, including present economic conditions such as
delinquency rates and the financial health of various governmental entities. Changes to the
estimated allowance for doubtful accounts could be material to our results of operations and
financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Accounting for Stock-Based Compensation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have used and expect to continue to use the Black-Scholes option pricing model to compute the
estimated fair value of stock-based awards. The Black-Scholes option pricing model includes
assumptions regarding dividend yields, expected volatility, expected option term and risk-free
interest rates. The assumptions used in computing the fair value of stock-based awards reflect our
best estimates, but involve uncertainties relating to market and other conditions, many of which
are outside of our control. We estimate expected volatility by considering the historical
volatility of our stock and our expectations of volatility for the expected term of stock-based
compensation awards. As a result, if other assumptions or estimates had been used for options
granted, stock-based compensation expense that was recorded could have been materially different.
Furthermore, if different assumptions are used in future periods, stock-based compensation expense
could be materially impacted in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Impairment of Goodwill</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;31, 2009, our goodwill totaled $750,000. We will perform an assessment of goodwill at
least annually for impairment and any such impairment will be recognized in the period identified.
In assessing the recoverability of goodwill and other intangibles, we must make various assumptions
regarding estimated future cash flows and other factors in determining the fair values of the
respective assets. If these estimates or their related assumptions change in the future, we may be
required to record impairment charges for these assets in future periods. Any such resulting
impairment charges could be material to our results of operations.
</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: 12pt"><B>Results of Operations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the year ended March&nbsp;31, 2008, we entered into a non-binding letter of intent to sell all of
the outstanding shares of stock of RPM. Accordingly, the results of operations of RPM were
classified as discontinued operations and except where specific discussions of RPM are made, all
financial information presented in this Annual Report excludes RPM for all periods presented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;12, 2008, we closed on the sale of RPM for a sales price of $150,000 in cash, plus
additional proceeds up to $150,000 in cash contingent upon the future net earnings of RPM
calculated over the five-year period after the closing of the transaction. Through March&nbsp;31, 2009,
no additional consideration has been earned. As a result of the sale of RPM, the Company recorded a
gain of $90,513 during the year ended March&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;12, 2008, we acquired all of the issued and outstanding shares of ITG for $570,000 in
cash on the closing date of the transaction. As a result of subsequent purchase price adjustments
and the return of funds from escrow, the resulting net purchase price was $174,632. ITG provides a
comprehensive range of services to children with developmental delays and disabilities. We had
been seeking an acquisition to transition into a new line of business. ITG possesses an
opportunity to grow organically in its industry and through the potential for add-on acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the period from September&nbsp;13, 2008 to March&nbsp;31, 2009, we recognized revenues of $3,320,926
generated by ITG. Costs of services for this period were $2,321,431, approximately 69.9% of
revenue, consisting of payroll and payroll related costs paid to our staff of salaried and per diem
clinicians.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative expenses for the year ended March&nbsp;31, 2009 (&#147;Fiscal 2009&#148;)
increased to $1,804,312 from $990,113 for the year ended March&nbsp;31, 2008 (&#147;Fiscal 2008&#148;) as a result
of expenses incurred by ITG&#146;s operations. Excluding ITG&#146;s expenses, corporate selling, general and
administrative expenses for Fiscal 2009 decreased approximately $233,104 from Fiscal 2008. During
Fiscal 2009, we recorded stock-based compensation expense of $21,100 in accordance with the
provisions of Statement of Financial Accounting Standards (&#147;SFAS&#148;) Statement No.&nbsp;123R (revised
2004), <I>Share-Based Payment </I>(&#147;SFAS 123R&#148;) for stock options granted during the period. By
comparison, stock-based compensation expense of $285,000 was recorded during Fiscal 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest income was $115,296 and $331,027 during Fiscal 2009 and Fiscal 2008, respectively.
Interest income declined dramatically in Fiscal 2009 as a result of the decrease in cash due to the
acquisition of ITG and the payment of ITG&#146;s outstanding bank debt subsequent to the acquisition as
well as declining interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We acquired ITG for $570,000 in cash on September&nbsp;12, 2008. Under the terms of the purchase
agreement, the purchase price was subject to adjustment based on the final determination of the
tangible net worth of ITG on the closing date of the acquisition (the &#147;Final Calculation&#148;). Based
on the Final Calculation, the purchase price was reduced by $374,785. Of this amount, $170,715 was
repaid by the former ITG shareholders subsequent to March&nbsp;31, 2009. Since the collectability of
the remaining balance is in question, we recorded a reserve of $204,070 for this uncollectible
balance in Other Income/(Expense) in the Consolidated Statements of Operations during the fourth
quarter of Fiscal 2009. We will continually monitor the collectability of this receivable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We evaluate the realizability of the deferred tax assets and the need for additional valuation
allowances quarterly. We believe it is more likely than not that the deferred tax assets will not
be realized. As of March&nbsp;31, 2009, we had net operating loss carryforwards of approximately
$3,289,000 which will be available to reduce future taxable income which expire in various years
ending through March&nbsp;31, 2029.
</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: 12pt"><B>Liquidity and Capital Resources</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our unrestricted cash and cash equivalents totaled $4,143,445 at March&nbsp;31, 2009. On September&nbsp;12,
2008, we purchased ITG using a portion of our existing cash and cash equivalents for a purchase
price of $570,000. Subsequent to the acquisition date, we paid off ITG&#146;s line of credit and a term
note payable totaling approximately $1,105,000, including interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our primary source of cash is existing cash resources. At March&nbsp;31, 2009, we had working capital
of $4,559,015 as compared to working capital of $6,226,063 at March&nbsp;31, 2008. We believe that we
have sufficient cash resources and working capital to meet our present cash requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During Fiscal 2009, net cash used in operating activities of continuing operations was $566,716,
primarily due to our operating loss from continuing operations of $895,617, offset by a provision
for an uncollectible receivable of $204,070 and depreciation and amortization of $73,923.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During Fiscal 2009, we used $432,229 in our investing activities, which consisted primarily of
$570,000 of cash used to acquire ITG offset by $149,391 representing the proceeds from the sale of
RPM.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our financing activities in Fiscal 2009 used a total of $1,122,039 which was comprised of
$1,105,000 to pay down ITG&#146;s bank debt and $11,251 for payments of our capital lease obligations.
We also used $5,432 in Fiscal 2009 to repurchase 6,900 Shares in private transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;13, 2008, the President of ITG, entered into a two-year employment agreement with ITG.
He is entitled to receive an annual base salary of $200,000 and is entitled to certain other
benefits. The employment agreement contains non-competition, non-solicitation and confidentiality
provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are currently exploring alternatives to ITG&#146;s corporate structure concerning non-compliance
issues regarding the practice of certain licensed professions in the State of New York. If a
change in professional practice structure is deemed necessary, we will take all appropriate
measures to assure compliance on a timely basis. Revenues derived from services performed by these
licensed professionals approximate 23% of total revenues during Fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Future minimum lease payments under non-cancelable capital and operating leases and subleases,
exclusive of future escalation charges, are as follows:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Operating</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Leases</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Leases</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">202,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total minimum lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">481,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Amounts representing interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,453</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Present value of minimum lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,051</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long-term portion of capital leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While we have not experienced any significant impact from the general slowdown of the economy or
current global credit crisis, continuing economic deterioration could have a negative impact on our
net revenues and operating results in future periods.
</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">We continue to review strategic alternatives for maximizing shareholder value. Potential
acquisitions will be evaluated based on their respective merits. We believe that we have
sufficient cash resources and working capital to meet our capital resource requirements for the
foreseeable future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Credit Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Service revenue is concentrated within a limited number of clients throughout New York State;
municipalities within New York State provide substantial and significant revenue to our Company.
This concentration of customers may impact our overall exposure to credit risk, either positively
or negatively, in that our customers may be similarly affected by changes in economic or other
conditions in New York State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Seasonality</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is moderately seasonal in nature based on the timing of the school year. Accordingly,
our second fiscal quarter, which includes two full months during which schools are not in session
(July and August), is the quarter in which we will achieve our lowest volume of revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest Rate Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest rate risk represents the potential loss from adverse changes in market interest rates. As
we may hold U.S. Treasury securities or money market funds, we may be exposed to interest rate risk
arising from changes in the level and volatility of interest rates and in the shape of the yield
curve.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Off Balance Sheet Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We do not have any off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on our financial condition, changes in financial condition, revenues or
expenses, results of operations, liquidity, capital expenditures or capital resources that are
material to investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recently Issued Accounting Pronouncements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the Financial Accounting Standards Board (&#147;FASB&#148;) issued SFAS No.&nbsp;141R, &#147;Business
Combinations&#148; (&#147;SFAS 141R&#148;), which changes how business acquisitions are accounted. SFAS 141R
requires the acquiring entity in a business combination to recognize all the assets acquired and
liabilities assumed in the transaction and establishes the acquisition-date fair value as the
measurement objective for all assets acquired and liabilities assumed in a business combination.
Certain provisions of this standard will, among other things, impact the determination of
acquisition-date fair value of consideration paid in a business combination (including contingent
consideration); exclude transaction costs from acquisition accounting; and change accounting
practices for acquired contingencies, acquisition-related restructuring costs, in-process research
and development, indemnification assets, and tax benefits. SFAS 141R is effective for business
combinations occurring after December&nbsp;15, 2008. The adoption of this standard did not have a
material effect on our consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160, &#147;Noncontrolling Interests in Consolidated Financial
Statements&#148; (&#147;SFAS 160&#148;), which requires consolidated net income to be reported at amounts that
include the amounts attributable to both the parent and noncontrolling interest. SFAS 160 is
effective for fiscal
years beginning on or after December&nbsp;15, 2008. The adoption of this standard did not have a
material effect on our consolidated financial statements.
</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 October&nbsp;2008, the FASB issued FSP FAS No.&nbsp;157-3<B>, </B>&#147;Determining the Fair Value of a Financial
Asset When the Market for That Asset Is Not Active&#148; (&#147;FSP FAS 157-3&#148;) with an immediate effective
date, including prior periods for which financial statements have not been issued. FSP FAS 157-3
clarifies the application of fair value in inactive markets and allows for the use of management&#146;s
internal assumptions about future cash flows with appropriately risk-adjusted discount rates when
relevant observable market data does not exist. The objective of FSP FAS 157-3 has not changed and
continues to be the determination of the price that would be received in an orderly transaction
that is not a forced liquidation or distressed sale at the measurement date. The adoption of FSP
FAS 157-3 did not have a material effect on our consolidated financial statements.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7A. Quantitative and Qualitative Disclosures about Market Risk.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are a &#147;smaller reporting company&#148; as defined by Regulation&nbsp;S-K and, as such, are not required to
provide the information contained in this item pursuant to Regulation&nbsp;S-K.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. Financial Statements and Supplementary Data.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The financial statements required by this Item are set forth at the pages indicated in Item&nbsp;13 on
page 22 of this Annual Report.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9A(T). Controls and Procedures.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>a). Disclosure Controls and Procedures.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We maintain disclosure controls and procedures (as defined in Rule&nbsp;13a-15(e) of the Securities
Exchange Act of 1934, as amended (&#147;Exchange Act&#148;)) that are designed to assure that information
required to be disclosed in our Exchange Act reports is recorded, processed, summarized and
reported within the time periods specified in the SEC&#146;s rules and forms, and that such information
is accumulated and communicated to management, including our principal executive officer and
principal financial officer, as appropriate, to allow timely decisions regarding required
disclosures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As required by Exchange Act Rule&nbsp;13a-15(b), as of the end of the period covered by this Annual
Report, under the supervision and with the participation of our principal executive officer and
principal financial officer, we evaluated the effectiveness of our disclosure controls and
procedures. Based on this evaluation, our principal executive officer and principal financial
officer concluded that our disclosure controls and procedures were effective as of that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>b). Internal Control over Financial Reporting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management is responsible for establishing and maintaining adequate internal control over financial
reporting as defined in Rule&nbsp;13a-15(f) under the Exchange Act. Internal control over financial
reporting is a process designed by, or under the supervision of, the principal executive officer
and principal financial officer, and effected by the board of directors and management to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with GAAP including those policies and
procedures that: (i)&nbsp;pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of assets, (ii)&nbsp;provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with GAAP and that receipts
and expenditures
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /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">are being made only in accordance with authorizations of management and the
directors, and (iii)&nbsp;provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of assets that could have a material effect on the
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with policies and procedures may deteriorate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management conducted an evaluation of the effectiveness of the internal control over financial
reporting based on the framework in <I>Internal Control &#151; Integrated Framework </I>issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation,
management concluded that internal control over financial reporting was effective as of March&nbsp;31,
2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management is aware, however, that there is a lack of segregation of duties due to the small number
of employees dealing with general administrative and financial matters. However, management has
concluded that considering the employees involved and the control procedures in place, the risks
associated with such lack of segregation are insignificant and the potential benefits of adding
employees to clearly segregate duties do not justify the expenses associated with such increases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Annual Report does not include an attestation report of our current independent registered
public accounting firm regarding internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>c). Changes in Internal Control over Financial Reporting.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There were no changes in our internal control over financial reporting that occurred during the
fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting. We have excluded from this assessment the internal
control over financial reporting of ITG, which we acquired in September&nbsp;2008. The total net assets
and net revenue of ITG represented $1.4&nbsp;million and $3.3&nbsp;million, respectively, of the total
consolidated total assets and net revenues for the year ended March&nbsp;31, 2009.
</DIV>
<!-- link2 "Item&nbsp;9B. Other Information" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9B. Other Information.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<!-- link1 "PART III" -->

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

<!-- link2 "Item&nbsp;10. Directors, Executive Officers and Corporate Governance" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;10. Directors, Executive Officers and Corporate Governance.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The executive officers and directors of our Company are as follows:
</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="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Age</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Position(s) with the Company</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gary Gelman
</DIV></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Chairman of the Board, President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gary J. Knauer
</DIV></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Chief Financial Officer, Treasurer and Secretary</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Edward M. Elkin, M.D.
</DIV></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter Gutmann
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">80</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Director</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joseph Looney
</DIV></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Director</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /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">Gary Gelman, the founder of our Company, has been Chairman of the Board since July&nbsp;1, 1985 and
President, Chief Executive Officer and a director since inception. Mr.&nbsp;Gelman served as Treasurer
from inception to October&nbsp;1991. Since 1973, Mr.&nbsp;Gelman has also been Chief Executive Officer and a
principal of American Para Professional Systems, Inc. (&#147;APPS&#148;), which provides nurses who perform
physical examinations of applicants for life and/or health insurance for insurance companies. He
received a B.A. from Queens College, City University of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gary J. Knauer joined our Company as its Controller in July&nbsp;1991 and has served as Chief Financial
Officer and Treasurer since October&nbsp;1991 and as Secretary since March&nbsp;1993. Before joining the
Company, he was employed from October&nbsp;1984 to June&nbsp;1991 by the accounting firm of KPMG LLP. He is
a Certified Public Accountant and holds a B.S. from the State University of New York at Binghamton.
Since February&nbsp;1994, Mr.&nbsp;Knauer also has served as Chief Financial Officer of APPS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Edward M. Elkin, M.D. has been a director of our Company since July&nbsp;1, 1985. He is currently a
health program consultant. Previously, Dr.&nbsp;Elkin had been performing services relating to
utilization review and quality assurance in hospitals for the New York State Department of Health.
He is certified by the American Board of Pediatrics and the American Board of Quality Assurance and
Utilization Review Physicians. He received his B.A. from Harvard College and his M.D. from New
York University School of Medicine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Peter Gutmann has been a director of our Company since July&nbsp;1, 1985. For more than the past twenty
years, he has been a Professor of Economics and Finance at Baruch College, City University of New
York and was Chairman of the Economics and Finance Department from 1971 to 1977. He received a
B.A. from Williams College, a B.S. from Massachusetts Institute of Technology, an M.A. from
Columbia University and a PhD. from Harvard University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Joseph Looney has been a director of our Company since June&nbsp;14, 2005. He is currently the Vice
President &#151; Finance for NBTY, Inc., a vertically integrated manufacturer and distributor of
vitamins and nutritional supplements. He was the Chief Financial Officer of EVCI Career College
Holding Corp. from October&nbsp;2005 to May&nbsp;2006. Previously, he had been the Chief Financial Officer
and Secretary of Astrex, Inc., a distributor of electronic components, since 2002. From 1996-2002,
he was the Chief Financial Officer, V.P. of Finance and Assistant Secretary of Manchester
Technologies, Inc., a network integrator and reseller of computer products. From 1984 to1996, he
was employed by the accounting firm of KPMG LLP. He is a Certified Public Accountant and has a
B.A. from Queens College, City University of New York and an M.S. from Long Island University.
Since 1996, Mr.&nbsp;Looney has also been an Adjunct Professor of Accounting and Business Law at Hofstra
University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The directors are elected at the Annual Meeting of Shareholders and hold office until the next
Annual Meeting of Shareholders and until their respective successors have been elected and
qualified or until their prior death, resignation or removal. Executive officers are elected
annually by, and serve at the discretion of, the Board of Directors (the &#147;Board&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have a separately-designated standing audit committee established in accordance with section
3(a)(58)(A) of the Exchange Act. Messrs.&nbsp;Elkin, Gutmann and Looney are the members of the Audit
Committee. The Board has determined that Mr.&nbsp;Looney is (i)&nbsp;the &#147;audit committee financial expert&#148;,
as
defined in regulations adopted pursuant to SOX and (ii) &#147;independent&#148; in accordance with rules
promulgated under the Exchange Act.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /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: 12pt"><B>Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We adopted a Code of Ethics (the &#147;Code of Ethics&#148;) that applies to our Chief Executive Officer,
Chief Financial Officer, directors and employees. Any amendments or waivers to the Code of Ethics
will be promptly disclosed as required by applicable laws, rules and regulations of the SEC. The
Code of Ethics was filed as an exhibit to our Annual Report on Form 10-KSB for the fiscal year
ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;16(a) Beneficial Ownership Reporting Compliance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Federal securities laws, our directors, executive officers and any person holding more than
10% of our Shares are required to report their ownership of our Shares and any changes in that
ownership to the SEC on the SEC&#146;s Forms 3, 4 and 5. Based on our review of the copies of such
forms we have received, we believe that all officers, directors and owners of greater than 10% of
our Company&#146;s equity securities complied on a timely basis with all filing requirements applicable
to them with respect to transactions during Fiscal 2009.
</DIV>
<!-- link2 "Item&nbsp;11. Executive Compensation" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;11. Executive Compensation.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth all compensation paid or accrued to our Chief Executive Officer
(principal executive officer) and Chief Financial Officer (collectively, the &#147;Named Executive
Officers&#148;) for each of our last two fiscal years:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY COMPENSATION TABLE</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="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Fiscal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Option</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">All Other</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Name and</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Awards</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Compensation</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Principal Position</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">March 31,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Salary</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Bonus</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Total</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary Gelman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">244,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">256,331</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chairman,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">244,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">285,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">540,853</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">President and CEO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary J. Knauer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">156,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">179,149</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasurer,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">144,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">152,120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Secretary and CFO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the compensation costs of stock option awards for financial reporting purposes for
the fiscal year under SFAS 123R, rather than an amount paid to or realized by the Named
Executive Officer. See Note 7 of the Notes to Consolidated Financial Statements for a
discussion of the assumptions used in calculating the aggregate grant date fair value computed
in accordance with SFAS 123R. There can be no assurance that the SFAS 123R amounts will ever
be realized.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts shown in All Other Compensation include our incremental cost for the provision to
the Named Executive Officers of certain specified perquisites as follows:</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Fiscal</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Personal Use</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">401(k)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">of Company</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Matching</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Named Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">March 31,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Automobile</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Contributions</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Total</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary Gelman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,542</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary J. Knauer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,541</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,203</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /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: 12pt"><B>Employment Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Gelman&#146;s employment agreement with our Company provides for him to be employed as Chairman of
the Board and Chief Executive Officer at an annual salary of $238,800, plus sick and vacation pay
of approximately $6,000. In addition, Mr.&nbsp;Gelman is entitled to participate in all employee
benefit programs and other policies and programs of our Company. Mr.&nbsp;Gelman is not required to
devote any specific number of hours to the business of our Company. He is subject to a
non-competition and non-disclosure covenant for a period of two years following termination of
employment with us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following describes plans adopted by our Company pursuant to which cash or non-cash
compensation was paid or distributed during the years ended March&nbsp;31, 2009 and 2008 or pursuant to
which such compensation may be distributed in the future to the Named Executive Officers:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>401(k) Profit Sharing Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We currently maintain two 401(k) plans which cover all employees having reached the age of 21 with
one or more years of service. Under the terms of these plans, there are vesting requirements with
respect to our contributions, but employees are fully vested in their own salary deferral
contributions. We do not provide for any other retirement benefit for any of our employees,
including executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Option Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In July&nbsp;1985, our Company&#146;s Board adopted the 1985 Stock Option Plan (the &#147;1985 Plan&#148;). The 1985
Plan had previously expired, except as to options outstanding. During the year ended March&nbsp;31,
2009, these options expired on their respective expiration dates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On May&nbsp;7, 1997, the Board adopted the 1997 Incentive Stock Option Plan (the &#147;1997 Plan&#148;) covering
750,000 Shares. Our shareholders ratified and approved the 1997 Plan in September&nbsp;1997. There are
no remaining options available for grant under the 1997 Plan. The 1997 Plan has expired, except as
to options outstanding (consisting of options to purchase 395,000 Shares at March&nbsp;31, 2009).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On August&nbsp;25, 2000, the Board adopted the 2000 Incentive Stock Plan (the &#147;2000 Plan&#148;). Our
shareholders ratified and approved the 2000 Plan in October&nbsp;2000. The 2000 Plan permits the
granting of options to purchase 750,000 Shares. At March&nbsp;31, 2009, options to purchase 141,000
Shares were outstanding under the 2000 Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;14, 2005, the Board adopted the 2005 Stock Incentive Plan (the &#147;2005 Plan&#148;) covering
1,000,000 Shares. Our Company&#146;s shareholders ratified and approved the 2005 Plan in October&nbsp;2005.
At March&nbsp;31, 2009, options to purchase 710,000 Shares were outstanding under the 2005 Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;20, 2007, the Board adopted the 2007 Stock Incentive Plan (the &#147;2007 Plan&#148;) covering
1,000,000 Shares. Our shareholders ratified and approved the 2007 Plan in October&nbsp;2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At March&nbsp;31, 2009, options to purchase 1,000,000, 290,000 and 9,000 Shares were available for grant
under the 2007 Plan, 2005 Plan and 2000 Plan, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the 2000 Plan, 2005 Plan and the 2007 Plan, either incentive stock options or nonstatutory
options may be granted as an incentive to key employees (including directors and officers who are
key
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /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">employees), non-employee directors, independent contractors and consultants of our Company and
to offer an additional inducement in obtaining the services of such individuals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The exercise price of the Shares under each option is determined by a committee appointed by the
Board (the &#147;Committee&#148;); provided, however, that the exercise price shall not be less than the fair
market value of the Shares on the date of the grant plus 10% for a more than 10% shareholder. The
term of each option granted is established by the Committee, in its sole discretion, provided that
the term shall not exceed ten years from the date of the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of our Plans provide that the number of Shares subject thereto and the outstanding options and
their exercise prices are to be appropriately adjusted for mergers, consolidations,
recapitalizations, stock dividends, stock splits or combinations of shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The current Committee appointed by the Board to administer our stock option plans consists of
Messrs.&nbsp;Gutmann, Elkin and Looney, all independent directors within the meaning of the Qualitative
Listing Rules of the NASDAQ Stock Market. The Board may at any time terminate or from time to time
amend or alter any of the existing Plans.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Outstanding Equity Awards at Fiscal Year-End</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth summary information regarding the outstanding equity awards held by
the Named Executive Officers at March&nbsp;31, 2009:
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">Option Awards</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Securities</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Securities</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Underlying</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Underlying</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unexercised</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unexercised</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Option</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Options</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Options</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Exercise</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Option</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">(#)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">(#)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Price</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Expiration</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exercisable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Unexercisable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">($)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Date</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary Gelman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/01/10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">08/15/15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #fffff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">06/20/17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary J. Knauer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">06/29/09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/01/10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">06/06/12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/07/13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">02/10/15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">08/15/15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25,000      </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">02/12/17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20,000      </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/15/18</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>These options, as well as all other options listed, are fully vested. However, the option
grants contain disposition restrictions which prohibit the sale of 50% of the awarded options
until the first anniversary of the grant date and the remaining 50% of the awarded options
until the second anniversary of the grant date.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The closing price of our Shares on March&nbsp;31, 2009 was $0.69 per share.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /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: 12pt"><B>Director Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each director who is not a salaried employee receives an annual retainer of $1,000 and a uniform
fee of $500 for each Board meeting and/or Audit Committee meeting attended in person. In addition,
Mr.&nbsp;Looney receives an additional fee of $500 per Audit Committee meeting attended in person as the
&#147;audit committee financial expert&#148; serving on our Audit Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Director compensation in Fiscal 2009 was as follows:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Fees Earned or</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Paid in Cash</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Total</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">($)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">($)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peter Gutmann</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward Elkin, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph Looney</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of March&nbsp;31, 2009, the aggregate number of option awards outstanding for Messrs.&nbsp;Elkin,
Gutmann and Looney are 81,000, 75,000 and 20,000 Shares, respectively.</TD>
</TR>

</TABLE>


<!-- link2 "Item&nbsp;12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" -->

<DIV style="margin-top: 12pt">
<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 colspan="3"><B>Item&nbsp;12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table and notes thereto set forth information regarding the beneficial ownership of
our Shares as of June&nbsp;24, 2009 by (i)&nbsp;each person known by us to be the beneficial owner of more
than 5% of such voting security, (ii)&nbsp;each current director, (iii)&nbsp;each Named Executive Officer and
(iv)&nbsp;all executive officers and directors of our Company as a group. The percentages have been
calculated by taking into account all Shares owned on such date as well as all such Shares with
respect to which such person has the right to acquire beneficial ownership at such date or within
60&nbsp;days thereafter. Unless otherwise indicated, all persons listed below have sole voting and sole
investment power over the Shares owned.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount and Nature</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Name and Address</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">of Beneficial</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Percent of</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">of Beneficial Owner</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Ownership (1)(6)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Class (1)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary Gelman (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,696,400      </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Edward &#038; Michael Gelman 2008 Trust (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,000,000      </TD>
    <TD nowrap>(3)(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peter Gutmann (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121,000      </TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward M. Elkin, M.D. (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph Looney (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gary J. Knauer (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.90</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Morton Davis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">388,024      </TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.12</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kinder Investments, L.P.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">292,500      </TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All executive officers and directors
as a group (five persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,163,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">69.67</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on a total of 4,754,900 Shares issued and outstanding as of June&nbsp;24, 2009. In addition,
1,221,000 Shares which directors and executive officers described in the table have the right
to acquire within 60&nbsp;days of such date pursuant to the exercise of options granted under our
stock option plans are included since these are deemed outstanding for the purpose of
computing the percentage of Shares owned by such persons in accordance with the provisions of
Rule&nbsp;13d-3(d)(1)(i) promulgated under the Exchange Act.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Address is c/o American Claims Evaluation, Inc., One Jericho Plaza, Jericho, NY 11753.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /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">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,000,000 Shares owned by The Edward &#038; Michael Gelman 2008 Trust (the &#147;Trust&#148;). As
investment trustee of the Trust, Mr.&nbsp;Gelman has beneficial ownership of such Shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Gelman is the investment trustee of the Trust and, as such, has beneficial ownership of
the Shares owned by the Trust.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 4,000 Shares owned by the wife of Mr.&nbsp;Gutmann, as to which beneficial ownership is
disclaimed.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes the presently exercisable portions of outstanding stock options (aggregating
1,221,000 Shares) which, in the case of Messrs.&nbsp;Gelman, Gutmann, Elkin, Looney and Knauer are
800,000, 75,000, 81,000, 20,000 and 245,000 Shares, respectively.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>386,924 of these Shares are owned of record by D.H. Blair Investment Banking Corp., whose
address is 44 Wall Street, New York, NY (&#147;Blair Investment&#148;). Mr.&nbsp;J. Morton Davis, the sole
shareholder of Blair Investment, has reported that Blair Investment&#146;s Shares may be deemed to
be beneficially owned by him. Mr.&nbsp;Davis owns 1,100 Shares directly.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>These Shares are owned of record by Kinder Investments, L.P. (&#147;Kinder&#148;), Nesher, LLC, the
general partner of Kinder (&#147;Nesher&#148;) and Dov Perlysky, the managing member of Nesher
(&#147;Perlysky&#148;). The reporting parties&#146; business address is 100 Park Avenue, New York, NY.
Nesher and Kinder may be deemed to beneficially own 292,500 Shares. Perlysky may be deemed to
beneficially own 292,572 Shares, consisting of 292,500 Shares owned directly by Kinder and 72
Shares owned directly by Perlysky&#146;s wife.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Equity Compensation Plan Information</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of securities remaining</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">to be issued upon</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Weighted-average</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">available for future issuance</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">exercise of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">exercise price of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">under equity compensation</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">outstanding options,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">outstanding options</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">plans (excluding securities</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">warrants and rights</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">warrants and rights</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">reflected in column (a))</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Plan category</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">(a)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">(b)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">(c)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity compensation
plans approved by
security holders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,246,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,246,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity compensation
plans not approved
by
security holders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,246,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,246,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- link2 "Item&nbsp;13. Certain Relationships and Related Transactions, and Director Independence" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;13. Certain Relationships and Related Transactions, and Director Independence.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We entered into a seven-year non-cancelable operating sublease which expires November&nbsp;30, 2011 for
office space with APPS, an entity under the control of our Chairman of the Board. Basic rent under
the sublease has been established as a pass-through with our cost being fixed at a cost equal to
the pro-rated rent payable for the subleased space by APPS to the building&#146;s landlord. See &#147;Item
2. Description of Property.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /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: 12pt"><B>Director Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Board consists of Gary Gelman, Peter Gutmann, Edward M. Elkin, M.D. and Joseph Looney. Except
for Mr.&nbsp;Gelman, all of such directors are &#147;independent&#148; as such term is defined in the Marketplace
Rules of the NASDAQ Stock Market.
</DIV>



<!-- link2 "Item&nbsp;14. Principal Accountant Fees and Services" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14. Principal Accountant Fees and Services.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The aggregate fees billed or billable for the fiscal years ended March&nbsp;31, 2009 and 2008 for
professional services rendered by Holtz Rubenstein Reminick LLP are as follows:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Fiscal Year Ended March 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Fees (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-Related Fees (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Other Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">93,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Consists of fees for services provided in connection with the audit of our financial
statements and review of our quarterly financial statements.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Consists of fees for services provided in connection with the audit of ITG&#146;s balance sheet as
of the acquisition date.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Audit Committee Pre-Approval and Permissible Non-Audit Services of Independent Registered Public
Accounting Firm.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee, consisting of Messrs.&nbsp;Elkin, Gutmann and Looney, is to pre-approve all audit
and non-audit services provided by the independent registered public accounting firm. These
services may include audit services, audit-related services, tax services and other services as
allowed by law or regulation. The independent registered public accounting firm and our management
are required to periodically report to the Audit Committee regarding the extent of services
provided by the independent registered public accounting firm in accordance with this pre-approval
and the fees incurred to date. The Audit Committee may also pre-approve particular services on a
case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The engagement of Holtz Rubenstein Reminick LLP for the fiscal years ended March&nbsp;31, 2009 and 2008
and the scope of audit-related services, including the audits and reviews described above, were all
pre-approved by the Audit Committee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /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">
<!-- link1 "PART IV" -->

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

<!-- link2 "Item&nbsp;15. Exhibits and Financial Statement Schedules" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;15. Exhibits and Financial Statement Schedules.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Documents filed with this report:
</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">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Financial Statements</B></U>:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Report of Independent Registered Public Accounting Firm</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated Balance Sheets as of March&nbsp;31, 2009 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated Statements of Operations for the years ended March&nbsp;31, 2009 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated Statements of Stockholders&#146; Equity for the years ended March&nbsp;31, 2009 and
2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated Statements of Cash Flows for the years ended March&nbsp;31, 2009 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes to Consolidated Financial Statements</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Financial Statement Schedules</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial statement schedules have been omitted because they are either not required or
not applicable or because the required information is presented in the financial
statements or related notes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Exhibits</B></U></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">3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restated Certificate of Incorporation of the Company (Incorporated by
reference to Exhibit&nbsp;E to the Company&#146;s Proxy Statement for the Annual Meeting,
dated September&nbsp;14, 2007).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By-Laws (Incorporated by reference to Exhibit&nbsp;3.2 to the Company&#146;s
Annual Report on Form 10-KSB for its year ended March&nbsp;31, 2008).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>1997 Stock Incentive Plan (Incorporated by reference to Exhibit&nbsp;4 to
the Company&#146;s Registration Statement on Form S-8, File No.&nbsp;333-39071, dated October
30, 1997).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>2000 Stock Incentive Plan (Incorporated by reference to Exhibit&nbsp;A to
the Company&#146;s Proxy Statement dated September&nbsp;11, 2000).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employment Agreement, dated June&nbsp;7, 2001, between the Company and Gary
Gelman (Incorporated by reference to Exhibit&nbsp;10.1 to the Company&#146;s Annual Report on
Form 10-KSB for its year ended March&nbsp;31, 2001).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sublease Agreement, dated August&nbsp;20, 2004, between American Para
Professional Systems, Inc. and the Company with respect to the premises at One
Jericho Plaza, Jericho, NY (Incorporated by reference to Exhibit&nbsp;10 to the
Company&#146;s Form 10-QSB for the quarter ended September&nbsp;30, 2005).</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>2005 Stock Incentive Plan (Incorporated by reference to Exhibit&nbsp;10.8 to
the Company&#146;s Annual Report on Form 10-KSB for its year ended March&nbsp;31, 2005).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>2007 Stock Incentive Plan (Incorporated by reference to Exhibit&nbsp;F to
the Company&#146;s Proxy Statement for the Annual Meeting, dated September&nbsp;14, 2007).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock Purchase Agreement by and among American Claims Evaluation,
Inc., John Torrens, Kyle Palin Torrens and Carlena Palin Torrens, dated September
12, 2008 (Incorporated by reference to Exhibit&nbsp;10.10 to the Company&#146;s Form 8-K
dated September&nbsp;16, 2008).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Escrow Agreement by and among American Claims Evaluation, Inc., John
Torrens, Kyle Palin Torrens, Carlena Palin Torrens and Siller Wilk LLP dated
September&nbsp;12, 2008 (Incorporated by reference to Exhibit&nbsp;10.11 to the Company&#146;s
Form 8-K dated September&nbsp;16, 2008).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock Purchase Agreement by and between American Claims Evaluation,
Inc. and Stephen D. Renz, dated September&nbsp;12, 2008 (Incorporated by reference to
Exhibit&nbsp;10.12 to the Company&#146;s Form 8-K dated September&nbsp;16, 2008).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employment Agreement dated September&nbsp;12, 2008, between Interactive
Therapy Group Consultants, Inc. and John Torrens (Incorporated by reference to
Exhibit&nbsp;10.13 to the Company&#146;s Form 10-QSB for the quarter ended September&nbsp;30,
2008).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lease Agreement, dated April&nbsp;13, 2005, with respect to the Interactive
Therapy Group Consultants, Inc. office located at 19 West 21st Street, New York,
NY.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lease Agreement, dated January&nbsp;4, 2008, with respect to the
Interactive Therapy Group Consultants, Inc. office located at One Adler Drive, East
Syracuse, NY.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lease Agreement, dated February&nbsp;4, 2009, with respect to the
Interactive Therapy Group Consultants, Inc. office located at 331 Alberta Drive,
Amherst, NY.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Code of Ethics (Incorporated by reference to Exhibit&nbsp;14 to the
Company&#146;s Annual Report on Form 10-KSB for its year ended March&nbsp;31, 2004).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">23.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of Independent Registered Public Accounting Firm.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">31.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rule&nbsp;13a-14(a)/15d-14(a) Certification.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">31.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rule&nbsp;13a-14(a)/15d-14(a) Certification.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">32.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;1350 Certification of Chief Executive Officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">32.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;1350 Certification of Chief Financial Officer.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /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">



</TABLE>
</DIV>
<!-- link1 "SIGNATURES" -->

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned, 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">AMERICAN CLAIMS EVALUATION, 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/ Gary Gelman
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Gary Gelman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chairman of the Board, President
<BR>
and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">DATE: June&nbsp;24, 2009

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the registrant and in the capacities and on the dates
indicated:
</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="27%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">SIGNATURES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">TITLE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">DATE</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>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gary Gelman
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Gary Gelman
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board,&nbsp;President
and Chief
Executive Officer
<BR>
(Principal Executive Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;24, 2009</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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gary J. Knauer
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Gary J. Knauer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer,&nbsp;Treasurer
and Secretary
<BR>
(Principal Financial
and Accounting Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;24, 2009</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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward M. Elkin
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;24, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Edward M. Elkin, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" 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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Peter Gutmann
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;24, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter Gutmann</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" 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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Joseph Looney
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;24, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><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="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joseph Looney</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /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">
<!--TOC-->
</DIV>
<DIV align="left">
<!--A name="tocpage"--><!--/A-->
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#101"-->Report of Independent Registered Public Accounting Firm<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">F-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><!--A href="#102"-->Balance Sheets as of March&nbsp;31, 2009 and 2008<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">F-2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><!--A href="#103"-->Statements of Operations for the years ended March&nbsp;31, 2009 and 2008<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">F-3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><!--A href="#104"-->Statements of Stockholders&#146; Equity for the years ended March&nbsp;31, 2009 and 2008<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">F-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><!--A href="#105"-->Statements of Cash Flows for the years ended March&nbsp;31, 2009 and 2008<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">F-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><!--A href="#106"-->Notes to Financial Statements<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">F-6</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!--/TOC-->
</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">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Report of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors and Stockholders<BR>
American Claims Evaluation, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the accompanying consolidated balance sheets of American Claims Evaluation, Inc.
and subsidiary as of March&nbsp;31, 2009 and 2008, and the related consolidated statements of
operations, stockholders&#146; equity and cash flows for the years then ended. These consolidated
financial statements are the responsibility of the Company&#146;s management. Our responsibility is to
express an opinion on these consolidated financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material
misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of internal control
over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company&#146;s internal control over financial reporting. Accordingly, we express no such opinion. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall consolidated financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of American Claims Evaluation, Inc. and subsidiary as of
March&nbsp;31, 2009 and 2008, and results of their operations and cash flows for the years then ended,
in conformity with accounting principles generally accepted in the United States of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Holtz Rubenstein Reminick LLP<BR>
Melville, New York

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">June&nbsp;24, 2009

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-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" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,143,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,239,442</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts receivable (net of allowance for doubtful
accounts of $60,000 in 2009)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">847,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Receivable from former ITG shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,715</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current assets of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,337</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,281,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,384,339</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">750,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,072</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-current assets of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,674</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,284,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,484,085</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:45px; text-indent:-15px"><B>Liabilities and Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,936</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">604,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,190</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital leases payable &#151; current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current liabilities of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">722,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,276</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital leases payable &#151; net of current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.01 par value. Authorized 20,000,000 shares
in 2009 and 2008; issued 5,050,000
shares; outstanding
4,754,900 shares and 4,761,800 shares in
2009 and 2008,
respectively</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,952,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,931,099</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">998,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,806,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,001,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,787,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock, at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(467,273</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(461,841</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,534,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,325,809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,284,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,484,085</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-2<!-- /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>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>

<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Consolidated Statements of Operations

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Years ended March&nbsp;31, 2009 and 2008

</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,320,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,321,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">999,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general, and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,804,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">990,113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Operating loss from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(804,817</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(990,113</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income (expense):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">331,027</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,026</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reserve for uncollectible receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(204,070</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Loss from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(895,617</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(659,086</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations (note 2):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gain on sale of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gain (loss)&nbsp;from discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,996</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Provision for loss on disposal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(807,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(671,809</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)&nbsp;per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">From continuing operations &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.19</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.14</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">From discontinued operations &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.17</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.14</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average shares &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,760,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,761,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-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>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>

<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Consolidated Statements of Stockholders&#146; Equity

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Years ended March&nbsp;31, 2009 and 2008

</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Common stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>paid-in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Treasury stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>stockholders&#146;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Par value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>equity</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at March&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,646,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,477,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">288,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(461,841</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,712,618</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(671,809</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(671,809</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at March&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,931,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,806,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">288,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(461,841</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,325,809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(807,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(807,100</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase of treasury shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,432</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,432</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,952,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">998,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(467,273</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,534,377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-4<!-- /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>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Consolidated Statements of Cash Flows

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Years ended March&nbsp;31, 2009 and 2008

</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loss from continuing operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(895,617</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(659,086</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net loss to net cash
used in operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Provision for uncollectible receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,276</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Stock-based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Provision for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Changes in assets and liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(125,350</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Prepaid expenses and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,396</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,948</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(78,032</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,524</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,620</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Net cash used in operating activities
of continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(566,716</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(320,614</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Operating activities of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,172</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:105px; text-indent:-15px">Net cash used in operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(532,277</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(308,442</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Acquisition of business, net of cash acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(568,375</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale of subsidiary, net of cash divested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,245</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39,055</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(432,229</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39,055</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Investing activities of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,637</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:105px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(441,681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41,692</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment of debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,105,356</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment of capital lease payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,251</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,432</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Net cash used in financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,122,039</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Net decrease in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,095,997</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(350,134</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents &#151; beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,239,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,589,576</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents &#151; end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,143,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,239,442</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Supplemental disclosure of cash flow information:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash paid during the period for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-5<!-- /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>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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"><B>(1)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies</B></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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><I>(a)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Nature of Business</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>American Claims Evaluation, Inc. (the &#147;Company&#148;) operated in a single segment that
provided a full range of vocational rehabilitation and disability management services
through a wholly owned subsidiary, RPM Rehabilitation &#038; Associates, Inc. (&#147;RPM&#148;).
Subsequent to March&nbsp;31, 2008, the Company entered into a non-binding letter of intent to
sell this subsidiary. Accordingly, the financial statements present the results of RPM
as discontinued operations. The following footnotes relate only to the Company&#146;s
continuing operations, unless otherwise noted.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On September&nbsp;12, 2008, the Company acquired Interactive Therapy Group Consultants, Inc.
(&#147;ITG&#148;), a provider of comprehensive services to children with developmental delays and
disabilities. The results of operations for ITG are included in the consolidated results
of operations beginning September&nbsp;13, 2008.</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><I>(b)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Principles of Consolidation</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s financial statements are prepared on a consolidated basis and include the
Company and its wholly owned subsidiary. All intercompany transactions and balances have
been eliminated in consolidation.</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><I>(c)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Cash and Cash Equivalents</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All highly liquid investments with a maturity of three months or less at the date of
purchase are considered to be cash equivalents. From time to time, the Company invests
its excess cash in money market accounts that are stated at cost and approximate market
value.</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><I>(d)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Allowance for Doubtful Accounts</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company must make estimates of the uncollectability of all accounts receivable.
Management specifically analyzes receivables, historical bad debts and changes in
circumstances when evaluating the adequacy of the allowance for doubtful accounts.</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><I>(e)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Revenue Recognition</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognizes revenue for services when there is evidence of billable time
expended. Deferred revenue is recorded for amounts attributable to special education
programs when invoiced and recognized over the applicable program periods.</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><I>(f)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Property and Equipment</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Property and equipment are stated at cost, less accumulated depreciation. Depreciation is
computed using the straight-line method over the estimated useful lives of the respective
assets. Leasehold improvements are amortized over the shorter of the estimated lives of
the improvements or the remaining term of the lease.</TD>
</TR>

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

<!-- PAGEBREAK -->
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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 style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><I>(g)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Goodwill</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Goodwill represents the excess of the purchase price over the fair value of acquired
assets and liabilities. Goodwill shall be assessed at least annually for impairment and
any such impairment will be recognized in the period identified.</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><I>(h)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Income Taxes</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deferred tax assets and liabilities are recognized for temporary differences between the
financial reporting basis and the tax basis of the Company&#146;s assets and liabilities.
Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable
based on enacted tax laws. Changes in enacted tax rates are reflected in the financial
statements in the periods they occur. Deferred tax assets are reduced by a valuation
allowance if it is deemed more likely than not that some or all of the deferred tax
assets will not be realized.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On April&nbsp;1, 2008, the Company adopted Financial Accounting Standards Board (&#147;FASB&#148;)
Interpretation No.&nbsp;48, &#147;Accounting for Uncertainty in Income Taxes&#148; (&#147;FIN 48&#148;), an
interpretation of Statement of Financial Accounting Standards (&#147;SFAS&#148;) Statement No.&nbsp;109,
&#147;Accounting for Income Taxes&#148;. FIN 48 clarifies the accounting and reporting for
uncertainties in income tax law and prescribes a comprehensive model for the financial
statement recognition, measurement, presentation and disclosure of uncertain tax
positions taken or expected to be taken in income tax returns. FIN 48 prescribes a
two-step evaluation process for tax positions. The first step is recognition based on a
determination of whether it is more-likely-than-not that a tax position will be sustained
upon examination, including resolution of any related appeals or litigation processes,
based on the technical merits of the position. The second step is to measure a tax
position that meets the more-likely-than-not threshold. The tax position is measured as
the largest amount of benefit that is greater than 50% likely of being realized upon
ultimate settlement. If a tax position does not meet the more-likely-than-not recognition
threshold, the benefit of that position is not recognized in the financial statements.
The adoption of FIN 48 had no material impact on the Company&#146;s consolidated results of
operations or financial condition.</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><I>(i)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Earnings (Loss) per Share</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Basic earnings (loss)&nbsp;per share is computed on the weighted average common shares
outstanding. Diluted earnings per share reflects the maximum dilution from potential
common shares issuable pursuant to the exercise of stock options, if dilutive,
outstanding during each period. Employee and director stock options to purchase 1,246,000
and 1,233,500 shares of common stock for the years ended March&nbsp;31, 2009 and 2008,
respectively, were not included in the diluted loss per share calculations because their
effect would have been anti-dilutive.</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><I>(j)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Fair Value of Financial Instruments</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The carrying values of the Company&#146;s monetary assets and liabilities approximate fair
value as a result of the short-term nature of such assets and liabilities.</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><I>(k)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Concentration of Credit Risk</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Service revenue is concentrated within a limited number of clients throughout New York
State; municipalities within New York State provide substantial and significant revenue
to ITG. This</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-7<!-- /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 style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>concentration of customers may impact ITG&#146;s overall exposure to credit risk, either
positively or negatively, in that ITG&#146;s customers may be similarly affected by changes in
economic or other conditions in New York State.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company had four customers that represented 19%, 15%, 14% and 11% of revenue for the
year ended March&nbsp;31, 2009.</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><I>(l)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Use of Estimates</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The preparation of consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the
reported period. Actual results could differ from those estimates.</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><I>(m)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Stock-Based Compensation</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company accounts for stock-based compensation in accordance with SFAS No.&nbsp;123
(revised 2004), Share-Based Payment (&#147;SFAS 123R&#148;). Under the provisions of SFAS 123R,
stock-based compensation cost is measured at the grant date, based on the fair value of
the award, and is recognized on a straight-line basis over the vesting period.</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><I>(n)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Recently Issued Accounting Pronouncements</I></B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141R, &#147;Business Combinations&#148; (&#147;SFAS 141R&#148;),
which changes how business acquisitions are accounted for. SFAS 141R requires the
acquiring entity in a business combination to recognize all the assets acquired and
liabilities assumed in the transaction and establishes the acquisition-date fair value as
the measurement objective for all assets acquired and liabilities assumed in a business
combination. Certain provisions of this standard will, among other things, impact the
determination of acquisition-date fair value of consideration paid in a business
combination (including contingent consideration); exclude transaction costs from
acquisition accounting; and change accounting practices for acquired contingencies,
acquisition-related restructuring costs, in-process research and development,
indemnification assets, and tax benefits. SFAS 141R is effective for business
combinations occurring after December&nbsp;15, 2008. The adoption of this standard did not
have a material effect on the Company&#146;s consolidated financial statements.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160, &#147;Noncontrolling Interests in Consolidated
Financial Statements&#148; (&#147;SFAS 160&#148;), which requires consolidated net income to be reported
at amounts that include the amounts attributable to both the parent and noncontrolling
interest. SFAS 160 is effective for fiscal years beginning on or after December&nbsp;15,
2008. The adoption of this standard did not have a material effect on the Company&#146;s
consolidated financial statements.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In October&nbsp;2008, the FASB issued FSP FAS No.&nbsp;157-3<B>, </B>&#147;Determining the Fair Value of a
Financial Asset When the Market for That Is Asset Not Active&#148; (&#147;FSP FAS 157-3&#148;) with an
immediate effective date, including prior periods for which financial statements have not
been issued. FSP FAS 157-3 clarifies the application of fair value in inactive markets
and allows for the use of management&#146;s internal assumptions about future cash flows with
appropriately risk-adjusted discount rates when relevant observable market data does not
exist. The objective of FSP FAS 157-3 has not changed and continues to be the
determination of the price that would be received in an</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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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 style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>orderly transaction that is not a forced liquidation or distressed sale at the
measurement date. The adoption of FSP FAS 157-3 did not have a material effect on the
Company&#146;s consolidated financial statements.</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="3%" nowrap align="left"><B>(2)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Acquisition</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On September&nbsp;12, 2008 (the &#147;Closing Date&#148;), the Company acquired all of the issued and
outstanding shares of ITG for $570,000 in cash, subject to adjustment as described below. ITG
provides a comprehensive range of services to children with developmental delays and
disabilities. The Company had been seeking an acquisition to transition into a new line of
business. ITG possesses an opportunity to grow organically in its industry and through the
potential for add-on acquisitions.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The business combination was accounted for using the purchase method of accounting and,
accordingly, the purchase price was allocated to assets acquired and liabilities assumed based
on estimated fair values at the date of acquisition as follows:</TD>
</TR>

</TABLE>
</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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,031,831</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,099</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,254,495</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">667,658</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,105,356</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital leases payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,849</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities assumed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,829,863</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net assets acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(575,368</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The purchase price has been calculated as follows:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase price paid on the Closing Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">570,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Note receivable &#151; former ITG shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(374,785</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Escrowed funds to be returned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,583</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjusted purchase price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">174,632</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">750,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is currently in the process of obtaining an appraisal of the assets acquired and
liabilities assumed in the ITG acquisition to allocate the purchase price of the individual
assets acquired and liabilities assumed. We expect this appraisal to be completed by July&nbsp;31,
2009 and result in the identification and valuation of a number of intangible assets. The
results of the appraisal are not expected to have a material effect on the Company&#146;s
consolidated financial statements.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the terms of the stock purchase agreement, the purchase price was subject to adjustment
based on the final determination of the tangible net worth of ITG on the Closing Date (the
&#147;Final Calculation&#148;). Based on the Final Calculation, a negative adjustment to the purchase
price, amounting to $374,785, was required. Subsequent to March&nbsp;31, 2009, the former ITG
shareholders refunded $170,715 of the purchase price. At March&nbsp;31, 2009, the Company recorded
a receivable from the former ITG shareholders for this balance. Since the collectability of
the remaining balance of $204,070 is in question, the Company has recorded a reserve for the
uncollectible balance of $204,070. A provision for the uncollectible receivable has been
included in Other Income/(Expense) in the Consolidated Statement of Operations for the year
ended March&nbsp;31, 2009.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-9<!-- /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">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to the terms of the acquisition, $105,000 of the purchase price had been deposited
into an escrow account in respect of an outstanding obligation of ITG regarding unpaid
workers&#146; compensation premiums and in respect of any accounts receivable not collected within
240&nbsp;days of the Closing Date. At the conclusion of the escrow period, the workers&#146;
compensation liability was satisfied and accounts receivable totaling $20,583 remained
uncollected. Accordingly, $20,583 of the escrowed funds was returned to the Company in May
2009. A receivable for this balance has been included in prepaid expenses and other current
assets in the Consolidated Balance Sheet at March&nbsp;31, 2009. All remaining escrow funds were
released to the former ITG shareholders.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In conjunction with the acquisition, ITG&#146;s former majority shareholder will serve as President
of ITG and was given a two-year employment agreement at an annual base salary of $200,000.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following pro forma information for the years ended March&nbsp;31, 2009 and 2008 assume that
the ITG acquisition was made as of April&nbsp;1, 2007:</TD>
</TR>

</TABLE>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,069,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,902,406</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,076,030</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,049,647</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(985,517</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,062,370</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss per share &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.21</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.22</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The pro forma supplemental information is not necessarily indicative of actual results had the
acquisition occurred on the first day of the respective period, nor is it necessarily
indicative of future results. The pro forma supplemental information does not reflect
potential synergies, integration costs, or other costs or savings.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is currently exploring alternatives to ITG&#146;s corporate structure concerning
non-compliance issues regarding the practice of certain licensed professions in the State of
New York. If a change in professional practice structure is deemed necessary, the Company
will take all appropriate measures to assure compliance on a timely basis. Revenues derived
from services performed by these licensed professionals approximate 23% of total revenues.</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"><B>(3)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Discontinued Operations</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On September&nbsp;12, 2008, the Company sold RPM for a purchase price of $150,000 in cash, plus an
additional purchase price of up to $150,000 in cash contingent upon the future net earnings of
RPM calculated over the five year period after the closing of the transaction. Through March
31, 2009, no additional consideration has been earned. A gain on the sale of RPM of $90,513
was recorded for the year ended March&nbsp;31, 2009.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company followed the provisions of SFAS No.&nbsp;144, &#147;Accounting for the Impairment or
Disposal of Long-Lived Assets&#148;, related to the accounting and reporting for segments of a
business to be disposed of. Accordingly, the results of RPM&#146;s operations have been classified
as discontinued operations in all periods presented.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Revenue and earnings from discontinued operations were $753,857 and $7,277, respectively, for
the year ended March&nbsp;31, 2008.</TD>
</TR>

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



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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"><B>(4)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Property and Equipment</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Property and equipment consists of the following at March&nbsp;31, 2009 and 2008:</TD>
</TR>

</TABLE>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Estimated</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">useful life</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">175,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">5 years</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computer software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">3 - 10 years</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Furniture and fixtures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">5 - 10 years</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets under capital leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">5 years</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leasehold improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Life of lease</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">356,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less accumulated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">235,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">92,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Depreciation and amortization expense for the years ended March&nbsp;31, 2009 and 2008 amounted to
$73,923 and $20,276, respectively.</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"><B>(5)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Capital Leases</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has entered into various capital leases for the purchase of office equipment and
furniture and fixtures. These leases require monthly payments
totaling $1,794, inclusive of
interest at 9% per annum. These leases expire at various dates through September&nbsp;2011.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Annual maturities of capital lease obligations at March&nbsp;31, 2009 are as follows:</TD>
</TR>

</TABLE>
</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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,523</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,523</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total minimum lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: amounts representing interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,453</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Present value of minimum lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,597</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,051</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital leases payable &#151; net of current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,546</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Included in property and equipment at March&nbsp;31, 2009 are assets acquired under capital lease
arrangements of $56,220 with related accumulated depreciation of $14,461.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-11<!-- /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">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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"><B>(6)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Income Taxes</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No provisions for income tax expense were recorded for the years ended March&nbsp;31, 2009 and
2008. This differs from that which would have resulted when applying the statutory Federal
income tax rate as a result of the following items:</TD>
</TR>

</TABLE>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000">Year ended March 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Percent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Percent</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected income tax benefit
at the statutory Federal
tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(274,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(210,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The tax effects of temporary differences comprising the Company&#146;s deferred tax assets at March
31, 2009 and 2008 are as follows:</TD>
</TR>

</TABLE>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net operating loss carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,011,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">737,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital loss carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,367,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(844,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At March&nbsp;31, 2009, the Company had net operating loss carryforwards of approximately
$3,289,000 for Federal income tax purposes, which will be available to reduce future taxable
income. The Company also has a capital loss carryforward of approximately $732,000 at March
31, 2009 related to the sale of RPM which may be utilized to offset future capital gains.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based upon the uncertainty of whether the Company&#146;s net operating losses (&#147;NOLs&#148;) or capital
loss carryforwards may ultimately be utilized prior to their respective expirations, valuation
allowances of $274,000 and $210,000 were recorded during the years ended March&nbsp;31, 2009 and
2008, respectively. Benefits currently considered unrealizable could be adjusted in the future
if estimates of future taxable income during the carryforward period are revised.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The utilization of such NOLs and capital losses is subject to certain limitations under
Federal income tax laws. The Company&#146;s NOLs and capital losses are scheduled to expire in
various fiscal years ending through March&nbsp;31, 2029 and March&nbsp;31, 2014, respectively.</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"><B>(7)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock Options</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has four stock option plans, the 1997 Incentive Stock Option Plan (&#147;1997 Plan&#148;),
the 2000 Incentive Stock Option Plan (&#147;2000 Plan&#148;), the 2005 Incentive Stock Option Plan
(&#147;2005 Plan&#148;) and the 2007 Incentive Stock Option Plan (&#147;2007 Plan&#148;). The 1997 Plan has
expired except as to options outstanding. The 2000, 2005 and 2007 Plans provide for incentive
or nonqualified stock options to be granted to key employees, officers, directors, independent
contractors and consultants of the Company. The Company had a fifth stock option plan, the
1985 Stock Option Plan, which had previously expired
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-12<!-- /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">


</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except as to options outstanding. During the year ended March&nbsp;31, 2009, these options expired
on their respective expiration dates.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the 2000, 2005 and 2007 Plans, options may be granted at prices not less than the fair
market value on the date the option is granted. Options become exercisable and vest as
determined at the date of grant by a committee of the Board of Directors. Options expire ten
years after the date of grant unless an earlier expiration date is set at the time of grant.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in the options outstanding during the years ended March&nbsp;31, 2009 and 2008 are
summarized in the following table:</TD>
</TR>

</TABLE>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Average</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Remaining</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Aggregate</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Exercise</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Contractual</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Intrinsic</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at March&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,236,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">4.6 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">10 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(300,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at March&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,233,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">6 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">10 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,246,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">5.3 years</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="0" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At March&nbsp;31, 2009, there were options to purchase 1,000,000, 290,000 and 9,000 shares
available for grant under the 2007 Plan, 2005 Plan and 2000 Plan, respectively.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There were no outstanding options which were exercisable and in-the-money as of March
31, 2009 resulting in no aggregate intrinsic value. Aggregate intrinsic value represents
the total pretax intrinsic value, based on options with an exercise price less than the
Company&#146;s closing price of $0.69 as of March&nbsp;31, 2009, which would have been received by
the option holders had these option holders exercised their options as of that date.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognized stock-based compensation totaling $21,200 and $285,000 for the years
ended March&nbsp;31, 2009 and 2008, respectively, based on the fair value of stock options granted.
This expense is included in selling, general and administrative expenses in the Consolidated
Statements of Operations. At March&nbsp;31, 2009, all outstanding options to purchase shares are
fully vested. However, certain option grants contain disposition restrictions which prohibit
the sale of 50% of the awarded options until the first anniversary of the grant date and the
remaining 50% of the awarded options until the second anniversary of the grant date.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The per share weighted average fair values of stock options granted during the years ended
March&nbsp;31, 2009 and 2008 were $0.47 and $0.95, respectively. The Company&#146;s calculations were
made using the Black-Scholes option pricing model with the following weighted average
assumptions for the years ended March&nbsp;31, 2009 and 2008: expected volatility, 61.7% and 47.6%,
respectively; risk-free interest rates of 3.18% and 5.05%, respectively; expected option term,
five years following the grant date and expected dividend yields of 0%.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-13<!-- /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">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2009 and 2008

</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company estimates expected volatility by considering the historical volatility of the
Company&#146;s stock. The risk-free interest rate is based on the United States Treasury constant
maturity interest rate whose term is consistent with the expected life of the award. The
expected option term was calculated using the simplified method prescribed in Securities and
Exchange Commission Staff Accounting Bulletin No.&nbsp;107. Under this method, the expected option
life is equal to the sum of the weighted average vesting term plus the original contract term
divided by two.</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"><B>(8)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Retirement Plans</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company sponsors retirement plans pursuant to Section 401(k) of the Internal Revenue Code
of 1986, as amended (the &#147;Code&#148;), for all employees meeting certain service requirements.
Participants may contribute a percentage of compensation not to exceed the maximum allowed
under the Code. The plans provide for matching contributions by the Company which amounted to
$21,065 and $5,736 for the years ended March&nbsp;31, 2009 and 2008, respectively.</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"><B>(9)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Commitments</B></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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company leases office space under non-cancellable operating leases expiring in various
years through April&nbsp;2013. The future minimum lease payments under these operating leases are
as follows:</TD>
</TR>

</TABLE>
</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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">161,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">369,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On August&nbsp;20, 2004, the Company entered into a seven-year non-cancelable operating sublease
commencing December&nbsp;1, 2004, for office space with American Para Professional Systems, Inc.
(&#147;APPS&#148;), an entity under the control of the Company&#146;s Chairman of the Board. Basic rent
under the sublease has been established as a pass-through with the Company&#146;s cost being fixed
at a cost equal to the pro-rated rent payable for the subleased space by APPS to the
building&#146;s landlord. Rent expense paid to this related entity under the sublease for the
years ended March&nbsp;31, 2009 and 2008 was $39,732 and $38,574, respectively.</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Minimum lease payments under the related party sublease as of March&nbsp;31, 2009 are as follows:</TD>
</TR>

</TABLE>
</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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">112,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-14<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.14
<SEQUENCE>2
<FILENAME>y01854exv10w14.htm
<DESCRIPTION>EX-10.14
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.14</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 10.14</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>AGREEMENT OF LEASE</B>, made as of this 13<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of April, 2005, by and between <B>FIFTH AVENUE
PARTNERS, L.P., </B>13 East 16<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Street, Suite #400, New York, NY 10003, party of the first
part, hereinafter referred to as OWNER, and <B>INTERACTIVE THERAPY GROUP, INC.</B>, 4615 North Street,
Jamesville, NY 13078, party of the second part, hereinafter referred to as TENANT, <B>WITNESSETH:</B>
Owner hereby leases to Tenant and Tenant hereby hires from Owner <B>Suite #701 </B>(the &#147;Demised
Premises&#148;), as per the attached &#147;Exhibit&nbsp;A&#148;in the building known as <B>19 West 21</B><SUP style="font-size: 85%; vertical-align: text-top"><B>st</B></SUP><B> Street</B>
(&#147;Building&#148; or &#147;building&#148;) in the Borough of Manhattan, City of New York, for the term of five (5)
years and two (2)&nbsp;months (or until such term shall sooner cease and expire as hereinafter
provided), to commence on the
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of May, two thousand and five (&#147;Commencement Date&#148;)<BR>
and to end on the<BR>
31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day
of July, two thousand and ten (&#147;Expiration Date&#148;), &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">both dates inclusive, at an annual rental rate set forth in Article&nbsp;41 (&#147;Rent&#148;, &#147;rent&#148;, or &#147;Fixed
Rent&#148;), together with all other sums of money as shall become due and payable by Tenant under this
Lease (collectively, &#147;Additional Rent&#148; or &#147;additional rent&#148;), which Tenant agrees to pay in lawful
money of the United States which shall be legal tender in payment of all debts and dues, public and
private, at the time of payment, in equal monthly installments in advance on the first day of each
month during said term, at the office of Owner or such other place as Owner may designate, without
any set off or deduction whatsoever, except that Tenant shall pay the first monthly installment(s)
on the execution hereof (unless this Lease be a renewal).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that, at the commencement of the term of this Lease, or thereafter, Tenant shall
be in default in the payment of Rent to Owner pursuant to the terms of another lease with Owner or
with Owner&#146;s predecessor in interest, Owner may at Owner&#146;s option and without notice to Tenant add
the amount of such arrears to any monthly installment of Rent payable hereunder and the same shall
be payable to Owner as Additional Rent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto, for themselves, their heirs, distributees, executors, administrators,
legal representatives, successors and assigns, hereby covenant as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Rent: 1</B>. Tenant shall pay the Rent as above and hereinafter provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Occupancy, Use: 2</B>. Tenant shall use and occupy the Demised Premises for executive offices,
provided such use is in accordance with t he Certificate of Occupancy for the Building, if any, and
for no other purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Alterations: 3</B>. Tenant shall make no changes in or to the Demised Premises of any nature without
Owner&#146;s prior written consent. Subject to the prior written consent of Owner, and to the
provisions of this Article, Tenant at Tenant&#146;s expense, may make alterations, installations,
additions or improvements which are nonstructural and which do not affect utility services or
plumbing and electrical lines, in or to the interior of the Demised Premises using contractors or
mechanics first approved by Owner. Tenant shall, at its expense, before making any alterations,
additions, installations or improvements obtain all permits, approval and certificates required by
any governmental or quasi-governmental bodies and (upon completion) certificates of final approval
thereof and shall deliver promptly duplicates of all such permits, approvals and certificates to
Owner. Tenant agrees to carry and will cause Tenant&#146;s contractors and sub-contractors to carry
such worker&#146;s compensation, general liability, personal and property damage insurance as Owner may
require. If any mechanic&#146;s lien is filed against the Demised Premises, or the building of which
the same forms a part, for work claimed to have been done for, or materials furnished to, Tenant,
whether or not done pursuant to this Article, the same shall be discharged by Tenant within thirty
(30)&nbsp;days thereafter, at Tenant&#146;s expense, by filing the bond required by law or otherwise. All
fixtures and all paneling, partitions, railings and like installations, installed in the premises
at any time, either by Tenant or by Owner on Tenant&#146;s behalf, shall, upon installation, become the
property of Owner and shall remain upon and be surrendered with the Demised Premises unless Owner,
by notice to Tenant no later than twenty (20)&nbsp;days prior to the date fixed as the termination of
this Lease, elects to relinquish Owner&#146;s right thereto and to have them removed by Tenant, in which
event the same shall be removed from the Demised Premises by Tenant prior to the expiration of the
Lease, at Tenant&#146;s expense. Nothing in this Article shall be construed to give Owner title to or
to prevent Tenant&#146;s removal of trade fixtures, moveable office furniture and equipment, but upon
removal of any such from the premises or upon removal of other installations as may be required by
Owner, Tenant shall immediately and at its expense, repair and restore the premises to the
condition existing prior to installation and repair any damage to the Demised Premises or
</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">the building due to such removal. All property permitted or required to be removed, by Tenant at
the end of the term remaining in the premises after Tenant&#146;s removal shall be deemed abandoned and
may, at the election of Owner, either be retained as Owner&#146;s property or removed from the premises
by Owner, at Tenant&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Repairs: 4</B>. Owner shall maintain and repair the exterior of and the public portions of the
Building. Tenant shall, throughout the term of this Lease, take good care of the Demised Premises
including the bathrooms and lavatory facilities (if the Demised Premises encompass the entire floor
of the Building) and the windows and window frames and, the fixtures and appurtenances therein and
at Tenant&#146;s sole cost and expense promptly make all repairs thereto and to the Building, whether
structural or non-structural in nature, caused by or resulting from the carelessness, omission,
neglect or improper conduct of Tenant, Tenant&#146;s servants, employees, invitees or licensees, and
whether or not arising from such Tenant conduct or omission, when required by other provisions of
this Lease, including Article&nbsp;6, Tenant shall also repair all damage to the Building and the
Demised Premises caused by the moving of Tenant&#146;s fixtures, furniture or equipment. All the
aforesaid repairs shall be of quality or class equal to the original work or construction. If
Tenant fails, after ten (10)&nbsp;days notice, to proceed with due diligence to make repairs required to
be made by Tenant, the same may be made by the Owner at the expense of Tenant, and the expenses
thereof incurred by Owner shall be collectible, as Additional Rent, after rendition of a bill or
statement therefor. If the Demised Premises be or become infested with vermin, Tenant shall, at
its expense, cause the same to be exterminated. Tenant shall give Owner prompt notice of any
defective condition in any plumbing, heating system or electrical lines located in the Demised
Premises and following such notice, Owner shall remedy the condition with due diligence, but at the
expense of Tenant, if repairs are necessitated by damage or injury attributable to Tenant, Tenant&#146;s
servants, agents, employees, invitees or licensees as aforesaid. Except as specifically provided
in Article&nbsp;9 or elsewhere in this Lease, there shall be no allowance to the Tenant for a diminution
of rental value and no liability on the part of Owner by reason of inconvenience, annoyance or
injury to business arising from Owner, Tenant or others making or failing to make any repairs,
alterations, additions or improvements in or to any portion of the Building or the Demised Premises
or in and to the fixtures, appurtenances or equipment thereof. The provisions of this Article&nbsp;4
with respect to the making of repairs shall not apply in the case of fire or other casualty with
regard to which Article&nbsp;9 hereof shall apply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Window Cleaning: 5</B>. Tenant will not clean nor require, permit, suffer or allow any window in the
Demised Premises to be cleaned from the outside in violation of Section&nbsp;202 of the New York State
Labor Law or any other applicable law or of the Rules of the Board of Standards and Appeals, or of
any other Board or body having or asserting jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Requirements of Law,
Fire Insurance, Floor
Loads: 6</B>. Prior to the commencement of the Lease term, if Tenant is then in possession, and at all
times thereafter, Tenant shall, at Tenant&#146;s sole cost and expense, promptly comply with all present
and future laws, orders and regulations of all state, federal, municipal and local governments,
departments, commissions and boards and any direction of any public officer pursuant to law, and
all orders, rules and regulations of the New York Board of Fire Underwriters, or the Insurance
Services Office, or any similar body which shall impose any violation, order or duty upon Owner or
Tenant with respect to the Demised Premises, whether or not arising out of Tenant&#146;s use or manner
of use thereof, or, with respect to the Building, if arising out of Tenant&#146;s use or manner of use
of the Demised Premises or the Building (including the use permitted under the Lease). Except as
provided in Article&nbsp;30 hereof, nothing herein shall require Tenant to make structural repairs or
alterations unless Tenant has, by its manner of use of the Demised Premises or method of operation
therein, violated any such laws, ordinances, orders, rules, regulations or requirements with
respect thereto. Tenant shall not do or permit any act or thing to be done in or to the Demised
Premises which is contrary to law, or which will invalidate or be in conflict with public
liability, fire or other policies of insurance at any time carried by or for the benefit of Owner.
Tenant shall not keep anything in the Demised Premises except as now or hereafter permitted by the
Fire Department, Board of Fire Underwriters, Fire Insurance Rating Organization and other authority
having jurisdiction, and then only in such manner and such quantity so as not to increase the rate
for fire insurance applicable to the Building, nor use the premises in a manner which will increase
the insurance rate for the Building or any property located therein over that in effect prior to
the commencement of Tenant&#146;s occupancy. If by reason of failure to comply with the foregoing the
fire insurance rate shall, at the beginning of this Lease or at any time thereafter, be higher than
it otherwise would be, then Tenant shall reimburse Owner, as Additional Rent hereunder, for that
portion of all fire insurance premiums thereafter paid by Owner which shall have been charged
because of such failure by Tenant. In any action or proceeding wherein
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Owner and Tenant are parties, a schedule or &#147;make-up&#148; or rate for the Building or Demised Premises
issued by a body making fire insurance rates applicable to said premises shall be conclusive
evidence of the facts therein stated and of the several items and charges in the fire insurance
rates then applicable to said premises. Tenant shall not place a load upon any floor of the
Demised Premises exceeding the floor load per square foot area which it was designed to carry and
which is allowed by law. Owner reserves the right to prescribe the weight and position of all
safes, business machines and mechanical equipment. Such installations shall be placed and
maintained by Tenant, at Tenant&#146;s expense, in settings sufficient, in Owner&#146;s judgment, to absorb
and prevent vibration, noise and annoyance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Subordination: 7</B>. This Lease is subject and subordinate to all ground or underlying leases and to
all mortgages which may now or hereafter affect such leases or the real property of which the
Demised Premises are a part and to all renewals, modifications, consolidations, replacements and
extensions of any such underlying leases and mortgages. This clause shall be self-operative and no
further instrument or subordination shall be required by any ground or underlying lessor or by any
mortgagee, affecting any lease or the real property of which the Demised Premises are a part. In
confirmation of such subordination, Tenant shall execute promptly any certificate that Owner may
request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property &#150;
Loss, Damage,
Reimbursement,
Indemnity: 8</B>. Owner or its agents shall not be liable for any damage to property of Tenant or of
others entrusted to employees of the Building, nor for loss of or damage to any property of Tenant
by theft or otherwise, nor for any injury or damage to persons or property resulting from any cause
of whatsoever nature, unless caused by or due to the negligence of Owner, its agents, servants or
employees; Owner or its agents shall not be liable for any damage caused by other tenants or
persons in, upon or about said building or caused by operations in connection of any private,
public or quasi public work. If at any time any windows of the Demised Premises are temporarily
closed, darkened or bricked up (or permanently closed, darkened or bricked up, if required by law)
for any reason whatsoever including, but not limited to Owner&#146;s own acts, Owner shall not be liable
for any damage Tenant may sustain thereby and Tenant shall not be entitled to any compensation
therefor nor abatement or diminution of rent nor shall the same release Tenant from its obligations
hereunder nor constitute an eviction. Tenant shall indemnify and save harmless Owner against and
from all liabilities, obligations, damages, penalties, claims, costs and expenses for which Owner
shall not be reimbursed by insurance, including reasonable attorney&#146;s fees, paid, suffered or
incurred as a result of any breach by Tenant, Tenant&#146;s contractors, employees, invitees, or
licensees, of any covenant or condition of this Lease, or the carelessness, negligence or improper
conduct of the Tenant, Tenant&#146;s agents, contractors, employees, invitees, or licensees. Tenant&#146;s
liability under this Lease extends to the acts and omissions of any subtenant, and any contractor,
employee, invitee or licensee of any subtenant. In case any action or proceeding is brought
against Owner by reason of any such claim, Tenant, upon written notice from Owner, will, at
Tenant&#146;s expense, resist or defend such action or proceeding by counsel approved by Owner in
writing, such approval not to be unreasonably withheld.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Destruction,
Fire and Other
Casualty: 9</B>. (a)&nbsp;If the Demised Premises or any part thereof shall be damaged by fire or other
casualty, Tenant shall give immediate notice thereof to Owner and this Lease shall continue in full
force and effect except as hereinafter set forth. (b)&nbsp;If the Demised Premises are partially
damaged or rendered partially unusable by fire or other casualty, the damages thereto shall be
repaired by and at the expense of Owner and the Rent, until such repair shall be substantially
completed, shall be apportioned from the day following the casualty according to the part of the
premises which is usable. (c)&nbsp;If the Demised Premises are totally damaged or rendered wholly
unusable by fire or other casualty, then the Rent shall be proportionately paid up to the time of
the casualty and thenceforth shall cease until the date when the premises shall have been repaired
and restored by Owner, subject to Owner&#146;s right to elect not to restore the same as hereinafter
provided. (d)&nbsp;If the Demised Premises are rendered wholly unusable or (whether or not the Demised
Premises are damaged in whole or in part) if the Building shall be so damaged that Owner shall
decide to demolish it or to rebuild it, then, in any of such events, Owner may elect to terminate
this Lease by written notice to Tenant, given within 90&nbsp;days after such fire or casualty,
specifying a date for the expiration of the Lease, which date shall not be more than 60&nbsp;days after
the giving of such notice, and upon the date specified in such notice the term of this Lease shall
expire as fully and completely as if such date were the date set forth above for the termination
of this Lease and Tenant shall forthwith quit, surrender and vacate the
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">premises without prejudice however, to Owner&#146;s rights and remedies against Tenant under the lease
provisions in effect prior to such termination, and any rent owing shall be paid up to such date
and any payments of rent made by Tenant which were on account of any period subsequent to such date
shall be returned to Tenant. Unless Owner shall serve a termination notice as provided for herein,
Owner shall make the repairs and restorations under the conditions of (b)&nbsp;and (c)&nbsp;hereof, with all
reasonable expedition, subject to delays due to adjustment of insurance claims, labor troubles and
causes beyond Owner&#146;s control. After any such casualty, Tenant shall cooperate with Owner&#146;s
restoration by removing from the premises as promptly as reasonably possible, all of Tenant&#146;s
salvageable inventory and movable equipment, furniture, and other property. Tenant&#146;s liability for
rent shall resume five (5)&nbsp;days after written notice from Owner that the premises are substantially
ready for Tenant&#146;s occupancy. (e)&nbsp;Nothing contained hereinabove shall relieve Tenant from
liability that may exist as a result of damage from fire or other casualty. Notwithstanding the
foregoing, each party shall look first to any insurance in its favor before making any claim
against the other party for recovery for loss or damage resulting from fire or other casualty, and
to the extent that such insurance is in force and collectible and to the extent permitted by law,
Owner and Tenant each hereby releases and waives all right of recovery against the other or any one
claiming through or under each of them by way of subrogation or otherwise. The foregoing release
and waiver shall be in force only if both releasors&#146; insurance policies contain a clause providing
that such a release or waiver shall not invalidate the insurance. If, and to the extent, that such
waiver can be obtained only by the payment of additional premiums, then the party benefiting from
the waiver shall pay such premium within ten (10)&nbsp;days after written demand or shall be deemed to
have agreed that the party obtaining insurance coverage shall be free of any further obligation
under the provisions hereof with respect to waiver of subrogation. Tenant acknowledges that Owner
will not carry insurance on Tenant&#146;s furniture and or furnishings or any fixtures or equipment,
improvements, or appurtenances removable by Tenant and agrees that Owner will not be obligated to
repair any damage thereto or replace the same. (f)&nbsp;Tenant hereby waives the provisions of Section
227 of the Real Property Law and agrees that the provisions of this Article shall govern and
control in lieu thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Eminent Domain: 10</B>. If the whole or any part of the Demised Premises shall be acquired or
condemned by Eminent Domain for any public or quasi public use or purpose, then and in that event,
the term of this Lease shall cease and terminate from the date of title vesting in such proceeding
and Tenant shall have no claim for the value of any unexpired term of said Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Assignment,
Mortgage, Etc. 11</B>. Tenant, for itself, its heirs, distributees, executors, administrators, legal
representatives, successors and assigns, expressly covenants that it shall not assign, mortgage or
encumber this agreement, nor underlet, or suffer or permit the Demised Premises or any part thereof
to be used by others, without the prior written consent of Owner in each instance. Transfer of the
majority of the stock of a corporate Tenant shall be deemed an assignment. If this Lease be
assigned, or if the Demised Premises or any part thereof be underlet or occupied by anybody other
than Tenant, Owner may, after default by Tenant, collect rent from the assignee, undertenant or
occupant, and apply the net amount collected to the Rent herein reserved, but no such assignment,
underletting, occupancy or collection shall be deemed a waiver of this covenant, or the acceptance
of the assignee, undertenant or occupant as tenant, or a release of Tenant from the further
performance by Tenant of covenants on the part of Tenant herein contained. The consent by Owner to
an assignment or underletting shall not in any wise be construed to relieve Tenant from obtaining
the express consent in writing of Owner to any further assignment or underletting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Electric Current: 12</B>. Rates and conditions in respect to submetering or rent inclusion, as the
case may be, to be added in RIDER attached hereto. Tenant covenants and agrees that at all times
its use of electric current shall not exceed the capacity of existing feeders to the Building or
the risers or wiring installation and Tenant may not use any electrical equipment which, in Owner&#146;s
opinion, reasonably exercised, will overload such installations or interfere with the use thereof
by other tenants of the Building. The change at any time of the character of electric service
shall in no wise make Owner liable or responsible to Tenant, for any loss, damage or expenses which
Tenant may sustain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Access to
Premises: 13</B>. Owner or Owner&#146;s agents shall have the right (but shall not be obligated) to enter
the Demised Premises in any emergency at any time, and, at other reasonable times, to examine the
same and to make such repairs, replacements and improvements as Owner may deem necessary and
reasonably desirable to any
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">portion of the Building or which Owner may elect to perform in the premises after Tenant&#146;s failure
to make repairs or perform any work which Tenant is obligated to perform under this Lease, or for
the purpose of complying with laws, regulations and other directions of governmental authorities.
Tenant shall permit Owner to use and maintain and replace pipes and conduits in and through the
Demised Premises and to erect new pipes and conduits therein provided, wherever possible, they are
within walls or otherwise concealed. Owner may, during the progress of any work in the Demised
Premises, take all necessary materials and equipment into said premises without the same
constituting an eviction nor shall the Tenant be entitled to any abatement of rent while such work
is in progress nor to any damages by reason of loss or interruption of business or otherwise.
Throughout the term hereof Owner shall have the right to enter the Demised Premises at reasonable
hours for the purpose of showing the same to prospective purchasers or mortgagees of the Building,
and during the last six months of the term for the purpose of showing the same to prospective
tenants and may, during said six months period, place upon the premises the usual notices &#147;To Let&#148;
and &#147;For Sale&#148;, which notices Tenant shall permit to remain thereon without molestation. If Tenant
is not present to open and permit an entry into the premises, Owner or Owner&#146;s agents may enter the
same whenever such entry may be necessary or permissible by master key or forcibly and provided
reasonable care is exercised to safeguard Tenant&#146;s property, such entry shall not render Owner or
its agents liable therefor, nor in any event shall the obligations of Tenant hereunder be affected.
If during the last month of the term Tenant shall have removed all or substantially all of
Tenant&#146;s property therefrom, Owner may immediately enter, alter, renovate or redecorate the Demised
Premises without limitation or abatement of rent, or incurring liability to Tenant for any
compensation and such act shall have no effect on this Lease or Tenant&#146;s obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Vault,
Vault Space,
Area: 14</B>. No vaults, vault space or area, whether or not enclosed or covered, not within the
property line of the Building is leased hereunder, anything contained in or indicated on any
sketch, blueprint or plan, or anything contained elsewhere in this Lease to the contrary
notwithstanding. Owner makes no representation as to the location of the property line of the
Building. All vaults and vault space and all such areas not within the property line of the
Building, which Tenant may be permitted to use and/or occupy, is to be used and/or occupied under a
revocable license, and if any such license be revoked, or if the amount of such space or area be
diminished or required by any federal, state or municipal authority or public utility, Owner shall
not be subject to any liability nor shall Tenant be entitled to any compensation or diminution or
abatement of rent, nor shall such revocation, diminution or requisition be deemed constructive or
actual eviction. Any tax, fee or charge of municipal authorities for such vault or area shall be
paid by Tenant, if used by Tenant, whether or not specifically leased hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Occupancy: 15</B>. Tenant will not at any time use or occupy the Demised Premises in violation of the
certificate of occupancy issued for the building of which the Demised Premises are a part. Tenant
has inspected the premises and accepts them as is, subject to the riders annexed hereto with
respect to Owner&#146;s work, if any. In any event, Owner makes no representation as to the condition
of the premises and Tenant agrees to accept the same subject to violations, whether or not of
record. If any governmental license or permit shall be required for the proper and lawful conduct
of Tenant&#146;s business, Tenant shall be responsible for and shall procure and maintain such license
or permit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Bankruptcy: 16</B>. (a)&nbsp;Anything elsewhere in this Lease to the contrary notwithstanding, this Lease
may be cancelled by Owner by sending of a written notice to Tenant within a reasonable time after
the happening of any one or more of the following events: (1)&nbsp;the commencement of a case in
bankruptcy or under the laws of any state naming Tenant as the debtor; or (2)&nbsp;the making by Tenant
of an assignment or any other arrangements for the benefit of creditors under any state statute.
Neither Tenant nor any person claiming through or under Tenant, or by reason of any statute or
order of court, shall thereafter be entitled to possession of the premises demised but shall
forthwith quit and surrender the premises. If this Lease shall be assigned in accordance with its
terms, the provisions of this Article&nbsp;16 shall be applicable only to the party then owning Tenant&#146;s
interest in this Lease.
</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;It is stipulated and agreed that in the event of the termination of this Lease pursuant
to (a)&nbsp;hereof, Owner shall forthwith, notwithstanding any other provisions of this Lease to the
contrary, be entitled to recover from Tenant as and for liquidated damages an amount equal to the
difference between the rental reserved hereunder for the unexpired portion of the term demised and
the fair and reasonable rental value of the Demised Premises for the same period. In the
computation of such damages the difference between any installment of Rent becoming due hereunder
after the date of termination and the fair and reasonable rental value of the
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Demised Premises for the period for which such installment was payable shall be discounted to the
date of termination at the rate of four percent (4%) per annum. If such premises or any part
thereof be relet by the Owner for the unexpired term of said lease, or any part thereof, before
presentation of proof of such liquidated damages to any court, commission or tribunal, the amount
of rent reserved upon such reletting shall be deemed to be the fair and reasonable rental value for
the part or the whole of the premises so relet during the term of the reletting. Nothing herein
contained shall limit or prejudice the right of the Owner to prove for and obtain as liquidated
damages by reason of such termination, an amount equal to the maximum allowed by any statute or
rule of law in effect at the time when, and governing the proceedings in which, such damages are to
be proved, whether or not such amount be greater, equal to, or less than the amount of the
difference referred to above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Default: 17</B>. (1)&nbsp;If Tenant defaults in fulfilling any of the covenants of this Lease other than
the covenants for the payment of Rent or Additional Rent; or if the Demised Premises becomes vacant
or deserted, &#147;or if this Lease be rejected under &#167;235 of Title 11 of the U.S. Code (bankruptcy
code)&#148;, or if any execution or attachment shall be issued against Tenant or any of Tenant&#146;s
property whereupon the Demised Premises shall be taken or occupied by someone other than Tenant; or
if Tenant shall make default with respect to any other lease between Owner and Tenant; or if Tenant
shall have failed, after five (5)&nbsp;days written notice, to redeposit with Owner any portion of the
security deposited hereunder which Owner has applied to the payment of any Rent and Additional Rent
due and payable hereunder or failed to move into or take possession of the premises within fifteen
(15)&nbsp;days after the commencement of the term of this Lease, of which fact Owner shall be the sole
judge; then in any one or more of such events, upon Owner serving a written five (5)&nbsp;days notice
upon Tenant specifying the nature of said default and upon the expiration of said five (5)&nbsp;days, if
Tenant shall have failed to comply with or remedy such default, or if the said default or omission
complained of shall be of a nature that the same cannot be completely cured or remedied within said
five (5)&nbsp;day period, and if Tenant shall not have diligently commenced curing such default within
such five (5)&nbsp;day period, and shall not thereafter with reasonable diligence and in good faith,
proceed to remedy or cure such default, then Owner may serve a written three (3)&nbsp;days&#146; notice of
cancellation of this Lease upon Tenant, and upon the expiration of said three (3)&nbsp;days this Lease
and the term thereunder shall end and expire as fully and completely as if the expiration of such
three (3)&nbsp;day period were the day definitely fixed for the end and expiration of this Lease and the
term thereof and Tenant shall then quit and surrender the Demised Premises to Owner but Tenant
shall remain liable as hereinafter provided.
</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;(2)&nbsp;If the notice provided for in (1)&nbsp;hereof shall have been given, and the term shall expire
as aforesaid; or if Tenant shall make default in the payment of the Rent reserved herein or any
item of Additional Rent herein mentioned or any part of either or in making any other payment
herein required; then and in any of such events Owner may without notice, reenter the Demised
Premises either by force or otherwise and dispossess Tenant by summary proceedings or otherwise,
and the legal representative of Tenant or other occupant of the Demised Premises and remove their
effects and hold the premises as if this Lease had not been made, and Tenant hereby waives the
service of notice of intention to reenter or to institute legal proceedings to that end. If Tenant
shall make default hereunder prior to the date fixed as the commencement of any renewal or
extension of this Lease, Owner may cancel and terminate such renewal or extension agreement by
written notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Remedies of
Owner and Waiver
Of Redemption: 18</B>. In case of any such default, reentry, expiration and/or dispossess by summary
proceedings or otherwise, (a)&nbsp;the Rent, and Additional Rent, shall become due thereupon and be
paid up to the time of such reentry, dispossess and/or expiration, (b)&nbsp;Owner may relet the
premises or any part or parts thereof, either in the name of Owner or otherwise, for a term or
terms, which may at Owner&#146;s option be less than or exceed the period which would otherwise have
constituted the balance of the term of this Lease and may grant concessions or free rent or charge
a higher rental than that in this Lease, (c)&nbsp;Tenant or the legal representatives of Tenant shall
also pay Owner as liquidated damages for the failure of Tenant to observe and perform said Tenant&#146;s
covenants herein contained, any deficiency between the rent hereby reserved and/or covenanted to be
paid and the net amount, if any, of the rents collected on account of the subsequent lease or
leases of the Demised Premises for each month of the period which would otherwise have constituted
the balance of the term of this Lease. The failure of Owner to relet the premises or any part or
parts thereof shall not release or affect Tenant&#146;s liability for damages. In computing such
liquidated damages there shall be added to the said deficiency such expenses as Owner may incur in
connection with reletting, such as legal expenses, attorneys&#146; fees, brokerage, advertising and for
keeping the Demised Premises in good order or for preparing the same for reletting. Any such
liquidated damages shall be paid in monthly
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">installments by Tenant on the rent day specified in this Lease and any suit brought to collect the
amount of the deficiency for any month shall not prejudice in any way the rights of Owner to
collect the deficiency for any subsequent month by a similar proceeding. Owner, in putting the
Demised Premises in good order or preparing the same for re-rental may, at Owner&#146;s option, make
such alterations, repairs, replacements and/or decorations in the Demised Premises as Owner, in
Owner&#146;s sole judgment, considers advisable and necessary for the purpose of reletting the Demised
Premises, and the making of such alterations, repairs, replacements and/or decorations shall not
operate or be construed to release Tenant from liability hereunder as aforesaid. Owner shall in no
event be liable in any way whatsoever for failure to relet the Demised Premises, or in the event
that the Demised Premises are relet, for failure to collect the rent thereof under such reletting,
and in no event shall Tenant be entitled to receive any excess, if any, of such net rents collected
over the sums payable by Tenant to Owner hereunder. In the event of a breach or threatened breach
by Tenant of any of the covenants or provisions hereof, Owner shall have the right of injunction
and the right to invoke any remedy allowed at law or in equity as if reentry, summary proceedings
and other remedies were not herein provided for. Mention in this Lease of any particular remedy,
shall not preclude Owner from any other remedy, in law or in equity. Tenant hereby expressly
waives any and all rights of redemption granted by or under any present or future laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Fees and
Expenses: 19</B>. If Tenant shall default in the observance or performance of any term or covenant on
Tenant&#146;s part to be observed or performed under or by virtue of any of the terms or provisions in
any article of this Lease, then, unless otherwise provided elsewhere in this Lease, Owner may
immediately or at any time thereafter and without notice perform the obligation of Tenant
thereunder. If Owner, in connection with the foregoing or in connection with any default by Tenant
in the covenant to pay Rent hereunder, makes any expenditures or incurs any obligations for the
payment of money, including but not limited to attorney&#146;s fees, in instituting, prosecuting or
defending any action or proceedings, then Tenant will reimburse Owner for such sums so paid or
obligations incurred with interest and costs. The foregoing expenses incurred by reason of
Tenant&#146;s default shall be deemed to be Additional Rent hereunder and shall be paid by Tenant to
Owner within five (5)&nbsp;days of rendition of any bill or statement to Tenant therefor. If Tenant&#146;s
lease term shall have expired at the time of making such expenditures or incurring such
obligations, such sums shall be recoverable by Owner as damages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Building Alterations
and Management: 20</B>. Owner shall have the right at any time without the same constituting an
eviction and without incurring liability to Tenant therefor to change the arrangement and/or
location of public entrances, passageways, doors, doorways, corridors, elevators, stairs, toilets
or other public parts of the Building and to change the name, number or designation by which the
Building may be known. There shall be no allowance to Tenant for diminution of rental value and no
liability on the part of Owner by reason of inconvenience, annoyance or injury to business arising
from Owner or other Tenant making any repairs in the Building or any such alterations, additions
and improvements. Furthermore, Tenant shall not have any claim against Owner by reason of Owner&#146;s
imposition of any controls of the manner of access to the Building by Tenant&#146;s social or business
visitors as the Owner may deem necessary for the security of the Building and its occupants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>No Representations
by Owner: 21</B>. Neither Owner nor Owner&#146;s agents have made any representations or promises with
respect to the physical condition of the Building, the land upon which it is erected or the Demised
Premises, the rents, leases, expenses of operation or any other matter or thing affecting or
related to the Demised Premises or the Building except as herein expressly set forth and no rights,
easements or licenses are acquired by Tenant by implication or otherwise except as expressly set
forth in the provisions of this Lease. Tenant has inspected the Building and the Demised Premises
and is thoroughly acquainted with their condition and agrees to take the same &#147;as is&#148; on the date
possession is tendered and acknowledges that the taking of possession of the Demised Premises by
Tenant shall be conclusive evidence that the said premises and the Building of which the same form
a part were in good and satisfactory condition at the time such possession was so taken, except as
to latent defects. All understandings and agreements heretofore made between the parties hereto
are merged in this contract, which alone fully and completely expresses the agreement between Owner
and Tenant and any executory agreement hereafter made shall be ineffective to change, modify,
discharge or effect an abandonment of it in whole or in part, unless such executory agreement is in
writing and signed by the party against whom enforcement of the change, modification, discharge or
abandonment is sought.
</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"><B>End of Term: 22</B>. Upon the expiration or other termination of the term of this Lease, Tenant shall
quit and surrender to Owner the Demised Premises, broom clean, in good order and condition,
ordinary wear and damages which Tenant is not required to repair as provided elsewhere in this
Lease excepted, and Tenant shall remove all its property from the Demised Premises. Tenant&#146;s
obligation to observe or perform this covenant shall survive the expiration or other termination of
this Lease. If the last day of the term of this Lease or any renewal thereof, falls on Sunday,
this Lease shall expire at noon on the preceding Saturday unless it be a legal holiday in which
case it shall expire at noon on the preceding business day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Quiet Enjoyment: 23</B>. Owner covenants and agrees with Tenant that upon Tenant paying the Rent and
Additional Rent and observing and performing all the terms, covenants and conditions, on Tenant&#146;s
part to be observed and performed, Tenant may peaceably and quietly enjoy the premises hereby
demised, subject, nevertheless, to the terms and conditions of this Lease including, but not
limited to, Article&nbsp;34 hereof and to the ground leases, underlying leases and mortgages
hereinbefore mentioned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Failure to Give
Possession: 24</B>. If Owner is unable to give possession of the Demised Premises on the date of the
commencement of the term hereof, because of the holding-over or retention of possession of any
tenant, undertenant or occupants or if the Demised Premises are located in a building being
constructed, because such building has not been sufficiently completed to make the premises ready
for occupancy or because of the fact that a certificate of occupancy has not been procured or if
Owner has not completed any work required to be performed by Owner, or for any other reason, Owner
shall not be subject to any liability for failure to give possession on said date and the validity
of the Lease shall not be impaired under such circumstances, nor shall the same be construed in any
wise to extend the term of this Lease, but the Rent payable hereunder shall be abated (provided
Tenant is not responsible for Owner&#146;s inability to obtain possession or complete any work required)
until after Owner shall have given Tenant notice that the premises are substantially ready for
Tenant&#146;s occupancy. If permission is given to Tenant to enter into the possession or to occupy
premises other than the Demised Premises prior to the date specified as the commencement of the
term of this Lease, Tenant covenants and agrees that such occupancy shall be deemed to be under all
the terms, covenants and provisions of this Lease, except as to the covenant to pay Rent. The
provisions of this Article are intended to constitute &#147;an express provision to the contrary&#148; within
the meaning of Section&nbsp;223-a of the New York Real Property Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>No Waiver: 25</B>. The failure of Owner to seek redress for violation of, or to insist upon the strict
performance of any covenant or condition of this Lease or of any of the Rules or Regulations, set
forth or hereafter adopted by Owner, shall not prevent a subsequent act which would have originally
constituted a violation from having all the force and effect of an original violation. The receipt
by Owner of rent with knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach and no provision of this Lease shall be deemed to have been waived by Owner
unless such waiver be in writing signed by Owner. No payment by Tenant or receipt by Owner of a
lesser amount than the monthly Rent herein stipulated shall be deemed to be other than on account
of the earliest stipulated Rent, nor shall any endorsement or statement of any check or any letter
accompanying any check or payment as Rent be deemed an accord and satisfaction, and Owner may
accept such check or payment without prejudice to Owner&#146;s right to recover the balance of such Rent
or pursue any other remedy in this Lease provided. All checks tendered to Owner as and for the
rent of the Demised Premises shall be deemed payments for the account of Tenant. Acceptance by
Owner of rent from anyone other than Tenant shall not be deemed to operate as an attornment to
Owner by the payor of such rent or as a consent by Owner to an assignment or subletting by Tenant
of the Demised Premises to such payor, or as a modification of the provisions of this Lease. No
act or thing done by Owner or Owner&#146;s agents during the term hereby demised shall be deemed an
acceptance of a surrender of said premises and no agreement to accept such surrender shall be valid
unless in writing signed by Owner. No employee of Owner or Owner&#146;s agent shall have any power to
accept the keys of said premises prior to the termination of the Lease and the delivery of keys to
any such agent or employee shall not operate as a termination of the Lease or a surrender of the
premises.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Waiver of Trial
by Jury: 26</B>. It is mutually agreed by and between Owner and Tenant that the respective parties
hereto shall and they hereby do waive trial by jury in any action, proceeding or counterclaim
brought by either of the parties hereto against the other (except for personal injury or property
damage) on any matters whatsoever arising out of or in any way connected with this Lease, the
relationship of Owner and Tenant, Tenant&#146;s use of or occupancy
</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">of said premises, and any emergency statutory or any other statutory remedy. It is further
mutually agreed that in the event Owner commences any summary proceeding for possession of the
premises, Tenant will not interpose any counterclaim of whatever nature or description in any such
proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Inability to
Perform: 27</B>. This Lease and the obligation of Tenant to pay Rent hereunder and perform all of the
other covenants and agreements hereunder on the part of Tenant to be performed shall in no wise be
affected, impaired or excused because Owner is unable to fulfill any of its obligations under this
Lease or to supply or is delayed in supplying any service expressly or impliedly to be supplied or
is unable to make, or is delayed in making any repair, additions, alterations or decorations or is
unable to supply or is delayed in supplying any equipment or fixtures if Owner is prevented from so
doing by reason of strike or labor troubles or any cause whatsoever beyond Owner&#146;s sole control
including, but not limited to, government preemption in connection with a National Emergency or by
reason of any rule, order or regulation of any department or subdivision thereof of any government
agency or by reason of the conditions of supply and demand which have been or are affected by war
or other emergency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Bills and
Notices: 28</B>. Except as otherwise in this Lease provided, a bill, statement, notice or
communication which Owner may desire or be required to give to Tenant, shall be deemed sufficiently
given or rendered if, in writing, delivered to Tenant personally or sent by registered or certified
mail addressed to Tenant at the Building of which the Demised Premises form a part or at the last
known residence address or business address of Tenant or left at any of the aforesaid premises
addressed to Tenant, and the time of the rendition of such bill or statement and of the giving of
such notice or communication shall be deemed to be the time when the same is delivered to Tenant,
mailed, or left at the premises as herein provided. Any notice by Tenant to Owner must be served
by registered or certified mail addressed to Owner at the address first hereinabove given or at
such other address as Owner shall designate by written notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Water Charges: 29</B>. If Tenant requires, uses or consumes water for any purpose in addition to
ordinary lavatory purposes (of which fact Tenant constitutes Owner to be the sole judge) Owner may
install a water meter and thereby measure Tenant&#146;s water consumption for all purposes. Tenant
shall pay Owner for the cost of the meter and the cost of the installation thereof and throughout
the duration of Tenant&#146;s occupancy Tenant shall keep said meter and installation equipment in good
working order and repair at Tenant&#146;s own cost and expense in default of which Owner may cause such
meter and equipment to be replaced or repaired and collect the cost thereof from Tenant, as
Additional Rent. Tenant agrees to pay for water consumed, as shown on said meter at and when bills
are rendered, and on default in making such payment Owner may pay such charges and collect the same
from Tenant, as Additional Rent. Tenant covenants and agrees to pay, as Additional Rent, the sewer
rent, charge or any other tax, rent, levy or charge which now or hereafter is assessed, imposed or
a lien upon the Demised Premises or the realty of which they are part pursuant to law, order or
regulation made or issued in connection with the use, consumption, maintenance or supply of water,
water system or sewage or sewage connection or system. If the Building or the Demised Premises or
any part thereof is supplied with water through a meter through which water is also supplied to
other premises Tenant shall pay to Owner, as Additional Rent, on the first day of each month,
$25.00 of the total meter charges as Tenant&#146;s portion. Independently of and in addition to any of
the remedies reserved to Owner hereinabove or elsewhere in this Lease, Owner may sue for and
collect any monies to be paid by Tenant or paid by Owner for any of the reasons or purposes
hereinabove set forth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Sprinklers: 30</B>. Anything elsewhere in this Lease to the contrary notwithstanding, if the New York
Board of Fire Underwriters or the New York Fire Insurance Exchange or any bureau, department or
official of the federal, state or city government recommend or require the installation of a
sprinkler system or that any changes, modifications, alterations, or additional sprinkler heads or
other equipment be made or supplied in an existing sprinkler system by reason of Tenant&#146;s business,
or the location of partitions, trade fixtures, or other contents of the Demised Premises, or for
any other reason, or if any such sprinkler system installations, modifications, alterations,
additional sprinkler heads or other such equipment, become necessary to prevent the imposition of a
penalty or charge against the full allowance for a sprinkler system in the fire insurance rate set
by any said Exchange or by any fire insurance company, Tenant shall, at Tenant&#146;s expense, promptly
make such sprinkler system installations, changes, modifications, alterations, and supply
additional sprinkler heads or other equipment as required whether the work involved shall be
structural or nonstructural in nature. Tenant shall pay to Owner as Additional Rent the sum
</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">of $25.00 on the first day of each month during the term of this Lease, as Tenant&#146;s portion of the
contract price for sprinkler supervisory service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Elevators,
Heat, Cleaning: 31</B>. As long as Tenant is not in default under any of the covenants of this Lease
Owner shall: (a)&nbsp;provide necessary passenger elevator facilities on business days from 8:00 AM to
6:00 PM and on Saturdays from 8:00 AM to 1:00 PM; (b)&nbsp;if freight elevator service is provided,
same shall be provided only on regular business days Monday through Friday inclusive, and on those
days only between the hours of 9:00 AM and 12:00 noon and between 1:00 PM and 5:00 PM; (c)&nbsp;furnish
heat, water and other services supplied by Owner to the Demised Premises, when and as required by
law, on business days from 8:00 AM to 6:00 PM and on Saturdays from 8:00 AM to 1:00 PM; (d)&nbsp;clean
the public halls and public portions of the Building which are used in common by all tenants.
Tenant shall, at Tenant&#146;s expense, keep the Demised Premises, including the windows, clean and in
order, to the satisfaction of Owner, and for that purpose shall employ the person or persons, or
corporation approved by Owner. Tenant at Tenant&#146;s sole cost and expense shall make arrangements
directly with Owner&#146;s designated carting company for removal from the Building of all refuse and
rubbish generated by Tenant&#146;s operations. Tenant shall enclose such refuse and rubbish in secured
garbage bags and place it for collection in the freight area of the floor on which the Demised
Premises is located. Owner at Owner&#146;s sole option may at any time elect to contract for the
removal of Tenant&#146;s refuse and rubbish and bill Tenant for same as Additional Rent. Owner reserves
the right to stop service of the heating, elevator, plumbing and electric systems, when necessary,
by reason of accident, of emergency, or for repairs, alterations, replacements or improvements, in
the judgment of Owner desirable or necessary to be made, until said repairs, alterations,
replacements or improvements shall have been completed. If the Building of which the Demised
Premises are a part supplies manually operated elevator service, Owner may proceed with alterations
necessary to substitute automatic control elevator service upon ten (10)&nbsp;day written notice to
Tenant without in any way affecting the obligations of Tenant hereunder, provided that the same
shall be done with the minimum amount of inconvenience to Tenant, and Owner pursues with due
diligence the completion of the alterations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Security: 32</B>. Security shall at all times be equal to no less than two months Fixed and Additional
Rent. Tenant has deposited with Owner the sum of $10,998.66 as security for the faithful
performance and observance by Tenant of the terms, provisions and conditions of this Lease; it is
agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions
of this Lease, including, but not limited to, the payment of Rent and Additional Rent, Owner may
use, apply or retain the whole or any part of the security so deposited to the extent required for
the payment of any Rent and Additional Rent or any other sum as to which Tenant is in default or
for any sum which Owner may expend or may be required to expend by reason of Tenant&#146;s default in
respect of any of the terms, covenants and conditions of this Lease, including but not limited to,
any damages or deficiency in the reletting of the premises, whether such damages or deficiency
accrued before or after summary proceedings or other reentry by Owner. In the event that Tenant
shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of
this Lease, the security shall be returned to Tenant after the date fixed as the end of the Lease
and after delivery of entire possession of the Demised Premises to Owner. In the event of a sale
of the land and Building or leasing of the Building, of which the Demised Premises form a part,
Owner shall have the right to transfer the security to the vendee or lessee and Owner shall
thereupon be released by Tenant from all liability for the return of such security; and Tenant
agrees to look to the new Owner solely for the return of said security, and it is agreed that the
provisions hereof shall apply to every transfer or assignment made of the security to a new Owner.
Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the
monies deposited herein as security and that neither Owner nor its successors or assigns shall be
bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Captions: 33</B>. The Captions are inserted only as a matter of convenience and for reference and in
no way define, limit or describe the scope of this Lease nor the intent of any provision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Definitions: 34</B>. The term &#147;Owner&#148; as used in this Lease means only the owner of the fee or of the
leasehold of the Building, or the mortgagee in possession, for the time being of the land and
Building (or the owner of a lease of the building or of the land and building) of which the Demised
Premises form a part, so that in the event of any sale or sales of said land and Building or of
said Lease, or in the event of a lease of said Building, or of the land and Building, the said
Owner shall be and hereby is entirely freed and relieved of all covenants and obligations of Owner
hereunder, and it shall be deemed and construed without further agreement between the parties or
their
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">successors in interest, or between the parties and the purchaser, at any such sale, or the said
lessee of the Building, or of the land and Building, that the purchaser or the lessee of the
Building has assumed and agreed to carry out any and all covenants and obligations of Owner
hereunder. The words &#147;reenter&#148; and &#147;reentry&#148; as used in this Lease are not restricted to their
technical legal meaning. The term &#147;Rent&#148; (or &#147;Fixed Rent&#148; or &#147;rent&#148;) includes the annual rental
rate whether so expressed or expressed in monthly installments, and &#147;Additional Rent&#148; (or
&#147;additional rent&#148;). &#147;Additional Rent&#148; means all sums which shall be due to new Owner from Tenant
under this Lease, in addition to the annual rental rate. The term &#147;business days&#148; as used in this
Lease, shall exclude Saturdays (except such portion thereof as it is covered by specific hours in
Article&nbsp;31 hereof), Sundays and all days observed by the State or Federal Government as legal
holidays and those designated as holidays by the applicable building service union employees
service contract or by the applicable Operating Engineers contract with regard to HVAC service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Adjacent Excavation,
Shoring</B>: <B>35</B>. If an excavation shall be made upon land adjacent to the Demised Premises, or shall
be authorized to be made, Tenant shall afford to the person causing or authorized to cause such
excavation, license to enter upon the Demised Premises for the purpose of doing such work as said
person shall deem necessary to preserve the wall or the Building of which the Demised Premises form
a part from injury or damage and to support the same by proper foundations without any claim for
damages or indemnity against Owner, or diminution or abatement of Rent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Rules and
Regulations: 36</B>. Tenant and Tenant&#146;s servants, employees, agents, visitors, and licensees shall
observe faithfully, and comply strictly with, the Rules and Regulations annexed hereto and such
other and further reasonable Rules and Regulations as Owner or Owner&#146;s agents may from time to time
adopt. Notice of any additional rules or regulations shall be given in such manner as Owner may
elect. In case Tenant disputes the reasonableness of any additional Rule or Regulation hereafter
made or adopted by Owner or Owner&#146;s agents, the parties hereto agree to submit the question of the
reasonableness of such Rule or Regulation for decision to the New York office of the American
Arbitration Association, whose determination shall be final and conclusive upon the parties hereto.
The right to dispute the reasonableness of any additional Rule or Regulation upon Tenant&#146;s part
shall be deemed waived unless the same shall be asserted by service of a notice in writing upon
Owner within ten (10)&nbsp;days after the giving of notice thereof. Nothing in this Lease contained
shall be construed to impose upon Owner any duty or obligation to enforce the Rules and Regulations
or terms, covenants or conditions in any other lease, as against any other tenant and Owner shall
not be liable to Tenant for violation of the same by any other tenant, its servants, employees,
agents, visitors or licensees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Glass: 37</B>. Owner shall replace, at the expense of the Tenant, any and all plate and other glass
damaged or broken from any cause whatsoever in and about the Demised Premises. Owner may insure,
and keep insured, at Tenant&#146;s expense, all plate and other glass in the Demised Premises for and in
the name of Owner. Bills for the premiums therefor shall be rendered by Owner to Tenant at such
times as Owner may elect, and shall be due from, and payable by, Tenant when rendered, and the
amount thereof shall be deemed to be, and be paid, as Additional Rent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Estoppel
Certificate: 38</B>. Tenant, at any time, and from time to time, upon at least ten (10)&nbsp;days prior
notice by Owner, shall execute, acknowledge and deliver to Owner, and/or to any other person, firm
or corporation specified by Owner, a statement certifying that this Lease is unmodified in full
force and effect (or, if there have been modifications, that the same is in full force and effect
as modified and stating the modifications), stating the dates to which the Rent and Additional Rent
have been paid, and stating whether or not there exists any default by Owner under this Lease, and,
if so, specifying each such default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Directory Board
Listing: 39</B>. If, at the request of and as an accommodation to Tenant, Owner shall place upon the
directory board in the lobby of the Building, one or more names of persons other than Tenant, such
directory board listing shall not be construed as the consent by Owner to an assignment or
subletting by Tenant to such person or persons.
</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"><B>Successors and
Assigns: 40</B>. The covenants, conditions and agreements contained in this Lease shall bind and inure
to the benefit of Owner and Tenant and their respective heirs, distributees, executors,
administrators, successors, and except as otherwise provided in this Lease, their assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>In Witness Whereof, </B>Owner and Tenant have respectively signed and sealed this Lease as of the day
and year 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">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">     /s/ Steven Albert
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>FIFTH AVENUE PARTNERS, L.P.</B>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">By Steven Albert, General Partner&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">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">     /s/ John M. Torrens
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="4" align="left"><B>INTERACTIVE THERAPY GROUP, INC.</B>&nbsp;</TD>
</TR><TR>
    <TD align="left"></td>
    <TD colspan="3" align="left">By John M. Torrens, President
Date:&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">
Date:&nbsp;April 13, 2005&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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</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">RIDER OF AGREEMENT OF LEASE (&#147;LEASE&#148;)<BR>
MADE AS OF APRIL 13<SUP style="font-size: 85%; vertical-align: text-top">TH</SUP>, 2005<BR>
BY AND BETWEEN<BR>
FIFTH AVENUE PARTNERS, L.P., AS OWNER<BR>
AND<BR>
INTERACTIVE THERAPY GROUP, INC., AS TENANT
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THIS RIDER IS INTENDED TO BE AFFIXED TO THE LEASE. IN THE EVENT OF ANY INCONSISTENCY BETWEEN THE
PROVISIONS OF THIS RIDER AND THE PRINTED PORTION OF THE LEASE, THE PROVISIONS OF THIS RIDER SHALL
CONTROL.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 41 &#151; FIXED RENT AND ADDITIONAL RENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall pay to Owner Fixed Rent during the first twelve (12)&nbsp;months of the term an amount
of $64,792.00 per year, payable in equal monthly installments of $5,399.33 in advance on the first
business day of each and every calendar month.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of this lease the Fixed Rent shall be as follows, payable in equal monthly
installments:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2005 until April&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, 2006 &#151; $64,792.00<BR>
May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2006 until April&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, 2007 &#151; $66,735.76<BR>
May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2007 until April&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, 2008 &#151; $68,737.83<BR>
May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2008 until April&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, 2009 &#151; $70,799.96<BR>
May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2009 until April&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, 2010 &#151; $72,923.95<BR>
May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2010 until June&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, 2010 &#151; $12,518.61
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided no default exists under this Lease, Fixed Rent for the month of May&nbsp;2005 shall be
reduced to 0 to give effect to the fact a full month&#146;s rent was received by the Owner at the
signing of this Lease. Fixed Rent for the months of June&nbsp;2005 and July&nbsp;2005 shall be further
reduced to 0 to give effect to a Rent Abatement. No part of the Rent Abatement shall be granted
unless no default exists under the Lease.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 42 &#151; NOTICES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any notice, request, consent, approval, demand or other communication permitted or required to
be given pursuant to the terms, covenants and conditions of this Lease, or pursuant to any law or
governmental regulation (collectively, &#147;Notices&#148;), shall be in writing and, unless otherwise
required by such law or regulation, shall be sent by registered or certified mail, return receipt
requested, to the parties at the addresses set forth in this Lease.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 43 &#151; EXCULPATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Owner or any successor in interest is an individual, joint venture, tenancy-in-common,
general or limited partnership, unincorporated association or other unincorporated aggregate of
individuals (collectively, &#147;unincorporated Owner&#148;) and shall at any time have any liability under,
pursuant to or in connection with this Lease, neither Tenant nor any other party shall seek any
personal or money judgment against unincorporated Owner or in any other way under or pursuant to
this Lease. Any attempt by Tenant or others to seek any such personal liability or monetary
obligation shall, in addition to and not in limitation of unincorporated Owner&#146;s other rights,
powers, privileges and remedies under this Lease, immediately vest unincorporated Owner with the
unconditional right to cancel this Lease on three (3)&nbsp;days&#146; notice to Tenant.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 44 &#151; BROKER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant represents and warrants that it has not dealt with any broker or brokers other than
OLMSTEAD PROPERTIES INC. and HUDSON REALTY ENTERPRISES, LTD. in the negotiation of this Lease.
Tenant shall indemnify and hold Owner harmless from and against any and all loss, liability, claims
or expenses (including, without limitation, attorneys&#146; fees) that Owner may incur by reason of the
breach of the foregoing
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">representation or by reason of the claims of any brokers in connection with this transaction or
arising out of any assignment of this Lease or sublease of all or a part of the Demised Premises by
Tenant.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 45 &#151; LATE CHARGES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Tenant fails to pay any installment of Fixed Rent or Additional Rent by the fifth (5th) day
of each month, Tenant shall be required to pay a late charge of eight (8)&nbsp;cents for each dollar
unpaid. Such charge is to be computed retroactively to the date on which Fixed Rent or Additional
Rent became due and payable. The late charge is intended to compensate Owner for additional
expenses incurred in processing such late payments and is not intended to prevent Owner from
exercising any other available remedies against Tenant.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 46 &#151; TENANT COVENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.1 Tenant shall not make any claim against Owner for any injury or damage to Tenant or to
any other person or for any damage (by water, malicious mischief or otherwise) to, or loss of, or
loss of use of (by theft, mysterious disappearance or otherwise) any property of Tenant or of any
other person, or property irrespective of the cause of such injury, damage or loss, unless caused
by the negligence of Owner, its agents, servants or employees in connection with the operation or
maintenance of the Demised Premises or the Building. No property other than such as might normally
be brought upon or kept in the Demised Premises as an incident to the reasonable use of the Demised
Premises for the purposes herein specified shall be brought upon or kept in the Demised Premises.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.2 Tenant shall, at its sole cost and expense:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.2.1 Maintain the Demised Premises in a clean and sanitary manner. If tenant uses a
cleaning service in the evening after 6:00 PM or on weekends, that service shall be an approved
service designated by the Owner and used substantially in the Building.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.2.2 Remove all rubbish and other debris from the Demised Premises to such locations in the
Building as may be reasonably specified by Owner from time to time and under conditions approved by
Owner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.2.3 If necessary, obtain and maintain a service contract (or contracts) with a person or
company reasonably acceptable to Owner for the extermination of vermin, rats, mice, flies and other
insects in the Demised Premises, and use all reasonable diligence in accordance with the best
prevailing methods for doing so in the Borough of Manhattan to prevent and exterminate vermin,
rats, mice, flies and other insects in, on or about the Demised Premises.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.3 Obtain and maintain an annual service contract for the air conditioning unit(s), if any,
within the Demised Premises, and pay directly for individual repairs not covered by said contract.
In addition, Tenant agrees to obtain and pay directly for any and all permits and/or licenses
associated with the operation of the air conditioning unit(s).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless specified or defined in this Lease or otherwise agreed upon between Owner and Tenant,
any and all air conditioning equipment existing or installed by either Owner or Tenant in the
Demised Premises at the time or during the term of this Lease shall remain in the Demised Premises
and shall be considered leasehold improvements at the expiration of this Lease or upon vacating of
the Demised Premises by Tenant, either willfully or under any other terms or conditions of this
Lease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.4 Tenant shall, at its sole cost and expense, place and maintain machines and mechanical
equipment located in the Demised Premises that cause noise or vibration that may be transmitted to
the structure of the Building (to such a degree as to be reasonably objectionable to Owner or any
occupant of the Building) in settings of cork, rubber or spring type vibration eliminators
sufficient to eliminate noise or vibration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.5 Tenant shall not permit any cooking on the Demised Premises, whether hot or cold, except
that a microwave, coffeemaker and small refrigerator for use by Tenant&#146;s employees shall be
permitted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.6 Tenant has inspected the Demised Premises and agrees to take them as they are in &#147;as is&#148;
condition, and agrees to bear all expenses of making nonstructural repairs to the Demised Premises,
including without limitation, plumbing, electrical work, fixtures and all interior repairs, in a
manner consistent with section 3.
</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;46.7 Tenant agrees that it shall not permit its employees and/or visitors to congregate in the
Building lobby, the public corridors or in front of the Building. Tenant expressly agrees that any
violation of this Article shall constitute a material default under this Lease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.8 Tenant shall not bring any pets into the Demised Premises or permit any pets to be
brought into or kept within the Demised Premises.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 47 &#151; INSURANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall, at its sole cost and expense, obtain and at all times during the Term maintain
with responsible insurance carriers acceptable to Owner licensed to do business in the State of New
York, insurance covering the Demised Premises for the mutual benefit of Owner and Tenant as
follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.1 Fire Insurance with broad form extended coverage endorsement from time to time available,
for an amount not less than the full replacement value of Tenant&#146;s Improvements and Tenant&#146;s
personal property located in the Demised Premises. &#147;Full replacement value&#148; shall be determined at
the request of Owner by an architect, appraiser, appraisal company or one of the insurer&#146;s selected
by Owner and paid for by Tenant, but such determination shall not be required to be made more
frequently than once every two (2)&nbsp;years. No omission on the part of Owner to request any such
determination shall relieve Tenant of any of its obligations under this Article.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.2 Comprehensive General Liability Insurance, with such limits as may be reasonably
requested by Owner from time to time, but not less than a combined single limit of $1,500,000.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.3 All required insurance policies shall name Owner as an additional insured or loss payee,
as the case may be, and shall include a provision that they shall not be canceled without thirty
(30)&nbsp;days&#146; prior written notice to Owner. Tenant shall deliver copies of all required insurance
policies or certificates evidencing such coverage prior to the Commencement Date and renewal
policies prior to the expiration of the existing policies together with evidence of the payment of
premiums therefor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.4 Tenant shall pay to Owner as Additional Rent an amount equal to any additional insurance
premium charged to Owner by Owner&#146;s insurers as a direct or indirect result of Tenant&#146;s tenancy in
the Building.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.5 Tenant can only deliver to or remove from the Demised Premises any freight, furniture,
business equipment, merchandise and bulky matter of any description, on the freight elevators
and/or through the service entrances and corridors of the Building and only during the hours and in
the manner approved by Owner from time to time. Tenant can only be permitted to deliver to or
remove from the Demised Premises any of the items described in this article after Tenant has given
Owner three (3)&nbsp;days prior written notice of Tenant&#146;s intention to make such delivery or removal,
and provides Owner with written evidence that such delivery or removal is being made by an
individual or an entity who possesses general liability and workers compensation insurance or other
insurance as may be required by Owner in an amount which Owner deems to be sufficient.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 48 &#151; ADDITIONAL REMEDIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.1 If the Term shall terminate pursuant to Article&nbsp;17 or otherwise, then:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.1.1 Tenant shall pay to Owner all Fixed Rent and Additional Rent required to be paid by
Tenant to the date upon which the Term shall have terminated or to the date of re-entry upon the
Demised Premises by Owner, 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;48.1.2 Owner shall be entitled to retain all moneys, if any, paid by Tenant to Owner, whether
as advance Rent, security or otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.1.3 Tenant shall be liable for and shall pay to Owner, as damages, any deficiency between
the Fixed Rent and Additional Rent payable for the period which otherwise would have constituted
the unexpired portion of
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Term (conclusively presuming the Additional Rent to be the same as was payable for the twelve
(12)&nbsp;month period immediately preceding such termination or re-entry) and the net amount, if any,
of rents collected under any reletting effected pursuant to the provisions of this Article for any
part of such period (first deducting from the rents collected under any such reletting all of
Owner&#146;s expenses in connection with the termination of this Lease or Owner&#146;s re-entry upon the
Demised Premises and, in connection with such reletting, all repossession costs, brokerage
commissions, legal expenses, attorneys&#146; fees, alteration costs and other expenses); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.1.4 Any such deficiency shall be paid in monthly installments by Tenant on the days
specified in this Lease for the payment of installments of Fixed Rent. Owner shall be entitled to
recover from Tenant each monthly deficiency as the same shall arise and no suit to collect the
amount of the deficiency for any month shall prejudice Owner&#146;s right to collect the deficiency for
any subsequent month by a similar proceeding. Alternatively, a suit or suits for the recovery of
such deficiencies may be brought by Owner from time to time at its election.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.1.5 Notwithstanding anything herein to the contrary, the premises herein mentioned are
demised for the whole term with a whole amount of the Rent herein reserved due and payable at the
time of the making of this Lease, and the payment of rent in installments as above provided is for
the convenience of Tenant only, and if in default of any installment of Rent, then the whole of the
Rent reserved for the whole of the period then remaining unpaid, shall at the Owner&#146;s option at
once become due and payable without notice or demand.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 49 &#151; CERTIFICATES BY TENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time and from time to time, Tenant, for the benefit of Owner and the lessor under any
ground lease or underlying lease or the holder of any leasehold mortgage affecting any ground lease
or underlying lease, or of any fee mortgage covering the land or the land and Building containing
the Demised Premises, on at least five (5)&nbsp;days prior written request by Owner, will deliver to
Owner a statement certifying that this Lease is not modified and is in full force and effect (or if
there shall have been modifications, the same is in full force and effect as modified, and stating
the modifications), the commencement and expiration dates hereof, the dates to which the Fixed
Rent, Additional Rent and other charges have been paid, and whether or not, to the best knowledge
of the signer of such statement, there are any then existing defaults on the part of either Owner
or Tenant in the performance of the terms, covenants and conditions of this Lease, and if so,
specifying the default of which the signer of such statement has knowledge.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner shall from time to time provide upon ten (10)&nbsp;days prior written request by Tenant a
statement certifying as to status of Rent and Additional Rent payments due under this Lease and/or
that the Lease has not been modified and remains in full force and effect.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 50 &#151; LEGAL REQUIREMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If at any time during the term of this Lease, the fire safety law requirements of the City of
New York pursuant to Local Law #5 of 1973 or otherwise (&#147;Fire Requirements&#148;), masonry or exterior
wall requirements of the City of New York pursuant to Local Law #10 of 1980 or otherwise (&#147;Masonry
Requirements&#148;) or life safety requirements of the City of New York pursuant to Local Law #16 of
1984 or otherwise (&#147;Safety Requirements&#148;) or any other laws or requirements of the City of New York
or any agency having jurisdiction (&#147;Other Requirements&#148;) impose any obligations or requirements
upon Owner to perform any alteration, changes, installations or improvements (collectively
&#147;changes&#148;) to the Building hereof and/or the Demised Premises, then Tenant shall pay to Owner as
Additional Rent two point five (2.5%) percent (&#147;Tenant&#146;s Payment&#148;) of all costs and expenses
incurred by Owner in complying with such Fire Requirements, Masonry Requirements, Safety
Requirements or Other Requirements. Tenant&#146;s Payment shall be due and payable to Owner within
thirty (30)&nbsp;days after rendition of a bill therefor, accompanied by a statement setting forth the
changes performed by Owner. The obligation of Tenant in respect of such Additional Rent shall
survive the expiration of this Lease. Notwithstanding anything to the contrary in this Paragraph,
should Tenant&#146;s use, occupancy, or installation require specific compliance under such Requirements
above, then Tenant shall be responsible for 100% of the cost of said charges.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 51 &#151; ALTERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything in Article&nbsp;3 to the contrary notwithstanding, Owner shall not unreasonably withhold
or delay approval of written requests of Tenant to make non-structural interior alterations,
decorations, additions and
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">improvements (herein referred to as &#147;alterations&#148;) in the Demised Premises, provided that such
alterations do not affect utility services or plumbing and electrical lines or other systems of the
Building, and provided that all such alterations shall be performed in accordance with the
following conditions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.1 All such alterations shall be performed in accordance with architect&#146;s plans and
specifications first submitted to Owner for its prior written approval.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.2 All alterations shall be performed in a good and workmanlike manner, in compliance with
all other applicable provisions of this Lease and with all governmental authorities having
jurisdiction, and Tenant shall, prior to the commencement of any such alterations, at its sole cost
and expense obtain and exhibit to Owner any governmental permit required in connection with such
alterations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.3 All work in connection with alterations shall be performed with union labor having the
proper jurisdictional qualifications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.4 Tenant shall keep the Building and the Demised Premises free and clear of all liens for
any work or material claimed to have been furnished to or for Tenant or to the Demised Premises.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.5 Prior to the commencement of any work by or for Tenant, Tenant shall furnish to Owner
certificates of insurance evidencing the existence of the following insurance:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.5.1 Worker&#146;s compensation insurance covering all persons employed for such work and with
respect to whom death or bodily injury claims could be asserted against Owner, Tenant or the
Demised Premises;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.5.2 General liability insurance naming Owner, its designees, and Tenant as additional
insured, with limits of not less than $1,000,000 in the event of bodily injury to one person and
not less than $1,000,000, in the event of bodily injury to any number of persons in any one
occurrence, and with limits of not less than $500,000 for property damage. Tenant at its sole cost
and expense shall cause all such insurance to be maintained at all times when work to be performed
for or by Tenant is in progress. All such insurance shall be issued by a company authorized to do
business in New York and all policies or certificates therefor, issued by the insurer and bearing
notations evidencing the payment of premiums, shall be delivered to Owner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.6 All work to be performed by Tenant shall be done in a manner which will not unreasonably
interfere with or disturb other tenants and occupants of the Building.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.7 Any alterations to be made by Tenant (other than plumbing and electrical work) may be
performed by any reputable contractor or mechanic (collectively, &#147;Contractor&#148;) selected by Tenant
and approved by Owner, which approval Owner agrees it will not unreasonably withhold or delay,
provided the Contractor&#146;s performance of the alterations would not result in any labor discord in
the Building.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.8 Tenant may not, at any time during the Term, remove any alterations made by Tenant,
without the written approval of Owner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.9 Any restoration or repair which Tenant is required to make (whether structural or
non-structural) shall be of a quality or class equal to the then Building Standard.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.10 Tenant shall pay to Owner the sum of Two Hundred Fifty Dollars ($250.00) in connection
with any Tenant&#146;s changes or alterations, which must be approved by Owner in accordance with the
terms of this Article.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.11 The time during which Owner may make Owner&#146;s elections pursuant to Article&nbsp;3 hereof
shall be extended to include a period commencing thirty (30)&nbsp;days prior to the expiration or other
termination of this Lease or any renewal or extension thereof and terminating ninety (90)&nbsp;days
thereafter. Tenant agrees that Owner&#146;s rights hereunder shall survive the expiration of this Lease
or any renewal or extension thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.12 Nothing in this Lease shall be construed in any way as constituting the permission,
consent or request of Owner, express or implied, through act or omission, to act by inference or
otherwise, to any contractor,
</DIV>


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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">subcontractor, laborer, or materialman for the performance of any labor or the furnishing of any
materials for any specific improvement, installation, addition, decoration, alteration, or repair
of the Demised Premises or as giving Tenant the right, power, or authority to contract for or
permit the rendering of any service or the furnishing of any material that would give rise to the
filing of any mechanic&#146;s lien against the fee of the Demised Premises.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 52 &#151; CONTRACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When in this Lease the Tenant shall take or be required to take any action which may affect or
alter the plumbing or electrical facilities or services furnished by Owner in the Building, the
Demised Premises, or any portion thereof, Tenant shall only be entitled to have such work performed
by the building contractor designated from time to time by Owner, in its sole and absolute
discretion, to perform such alteration. Owner shall not be required to permit and Tenant shall not
be entitled to use any contractors not designated as Owner&#146;s selected contractors, provided,
however, that such contractors&#146; bids do not exceed by more than 15% the bids for work of comparable
quality, workmanship and specifications for performing such alterations submitted by Tenant&#146;s
contractors. If Tenant&#146;s contractor&#146;s bids are more than 15% below the bids of Owner&#146;s
contractors, Owner agrees not to unreasonably withhold or delay approval of Tenant&#146;s performance of
such alteration. Notwithstanding the foregoing, Tenant&#146;s contractors must be properly licensed.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 53 &#151; TENANT&#146;S CONDEMNATION CLAIM</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in Article&nbsp;10 to the contrary, Tenant shall have the right to make a
claim against the condemning authority for the value of its trade fixtures and business machines
and equipment taken in a condemnation, and for reimbursement of its resultant moving expenses.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 54 &#151; ACCESS TO THE DEMISED PREMISES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplementing the provisions of Article&nbsp;13, Owner&#146;s right to enter the Demised Premises and
its access thereto to make repairs and alterations and to erect and maintain pipes and conduits
(except in the event of an emergency, in which event that right shall be unrestricted) shall be
subject to the following conditions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54.1 Owner shall give Tenant reasonable notice of proposed entry or access;<BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54.2 Owner shall not be obligated to perform work other than during normal business hours.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 55 &#151; SQUARE FOOTAGE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant acknowledges that no representations have been made by the Owner as to the amount of
square footage in the Demised Premises, irrespective of any reference in this Lease to square
footage for any computation. The Tenant has inspected the Demised Premises and relies upon its own
judgment in computing the square footage.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 56 &#151; PLATE GLASS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant at its own cost and expense shall replace all damaged or broken plate glass or other
windows in or about the Demised Premises.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 57 &#151; ADDITIONAL RENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All payments other than the Fixed Rent to be made by Tenant pursuant to this Lease shall be
deemed Additional Rent and, in the event of any non-payment, Owner shall have all rights and
remedies provided for herein or by law for non-payment of Rent.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 58 &#151; CONDITIONAL LIMITATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Tenant defaults in the payment of Fixed or Additional Rent, or in making any other payment
required for a total of two (2)&nbsp;months, whether or not consecutive, in any twelve (12)&nbsp;month
period, and Owner shall have served upon Tenant a petition and notice of petition to dispossess
Tenant by summary proceedings for any one or
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">both of those months, then, notwithstanding that those defaults shall have been cured prior to the
entry of a judgment against Tenant, any further similar default shall be deemed to be deliberate
and Owner may require Tenant to deposit two additional months security deposit, and/or at Owner&#146;s
option Owner may serve a written three (3)&nbsp;days&#146; notice of cancellation of this Lease upon the
Tenant, and upon the expiration of that three (3)&nbsp;days, whether or not Tenant has paid its Rent
within that period, this Lease shall end and expire as fully and completely as if the expiration of
such three (3)&nbsp;day period was the day herein definitely fixed for the end and expiration of this
Lease and the Term, and Tenant shall remain liable as elsewhere provided in the Lease.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 59 &#151; UTILITY INCREASE</B>
</DIV>


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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLE 60 &#151; GAS AND WATER</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall make its own arrangements with the public utility company or companies or such
New York City agencies servicing the Demised Premises for the furnishing of and payment of charges
for gas and water. In no event shall Owner be responsible for charges for any such service. If
gas or water is used in the Demised Premises, Tenant covenants to install the appropriate gas
cutoff devices (manual and automatic) and meters for each service at Tenant&#146;s own cost and expense.
Anything to the contrary in Article&nbsp;29 of this Lease notwithstanding, water charges contained in
Article&nbsp;29 of this Lease are for the use of existing lavatories and Tenant must install a meter for
any other use of water in or about the Demised Premises.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 61 &#151; NOISE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall not permit noise to emanate from the Demised Premises at a sound level which
shall in any way disturb other tenants of the Building, or at a level that exceeds the level of
sound emanating from other floors of the Building. This Article shall directly bind any successors
in interest to Tenant. Tenant agrees that if at any time Tenant violates any of the provisions of
this Article, such violation shall be deemed a breach of a substantial obligation of the terms of
this Lease.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 62 &#151; PORNOGRAPHY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant agrees that the value of the Demised Premises will be substantially diminished and the
reputation of Owner and the partners of the Owner will be seriously injured if the premises are
used for any obscene or pornographic purposes or any sort of commercial sex establishment. Tenant
agrees that Tenant will not bring or permit any obscene or pornographic material on the premises,
and shall not conduct or permit any obscene, nude or semi-nude live performances on the premises,
nor permit use of the premises for nude modeling, rap sessions, or as a massage parlor. Tenant also
agrees that it will not permit the production or processing of any videotape, film or photograph on
the premises which depicts explicit sexual acts. Tenant agrees further that it will not permit any
of the herein mentioned uses by any sublessee or assignee of the premises. This Paragraph shall
bind successors in interest to Tenant. Tenant agrees that any violation of the term of this
Paragraph shall be deemed a breach of a substantial obligation of Tenant under this Lease.
Pornographic material, for purposes of this Paragraph, is defined as any written or pictorial
matter with prurient appeal or any object or instrument primarily used for lewd or prurient sexual
activity.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 63 &#151; ODORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall not cause or permit any unusual or objectionable odors, by-products or waste
material to emanate from the Demised Premises. Tenant covenants that it will hold Owner harmless
against all claims, damages or causes of action for damages arising after the commencement of the
term of this Lease and will indemnify the Owner from any suits, orders or decrees and judgments
entered therein, brought on account of any such emanation from the Demised Premises of unusual or
objectionable odors, by-products or waste material. Tenant covenants to pay any attorney&#146;s fees
and other legal expenses incurred by Owner in connection with any claim or suit as described in
this Paragraph.
</DIV>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 64 &#151; OWNER&#146;S COSTS BY TENANT&#146;S DEFAULTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Owner, as a result of a default by Tenant of any of the provisions of this Lease, including
the covenants to pay Rent and/or Additional Rent, makes any expenditure or incurs any obligations
for the payment of money, including but not limited to attorney&#146;s fees, in instituting, prosecuting
or defending any action or proceeding, such sums so paid or obligations so incurred with interest
and costs shall be deemed to be Additional Rent hereunder and shall be paid by Tenant to Owner
within five (5)&nbsp;days of rendition of any bill or statement to Tenant therefor, and if any
expenditure is incurred in collecting such obligations, such sum shall be recoverable by Owner as
additional damages.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 65 &#151; HOLDING OVER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Tenant holds over in possession after the expiration or sooner termination of the original
term or of any extended term of this Lease, such holding over shall not be deemed to extend the
term or renew the Lease, but such holding over thereafter shall continue upon the covenants and
conditions herein set forth, except that the charge for use and occupancy of such holding over, for
each calendar month or part thereof (even if such part shall be a small fraction of a calendar
month), shall be the sum of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65.1 One-twelfth (1/12) of the highest annual Rent rate set forth on Page One of this Lease,
times two point five (2.5), plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65.2 One-twelfth (1/12) of annual Additional Rent, which annual Additional Rent would have
been payable pursuant to this Lease had this Lease not expired, plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65.3 Those other items of Additional Rent (not annual Additional Rent) which would have been
payable monthly pursuant to this Lease had this Lease not expired, which total sum Tenant agrees to
pay to Owner promptly upon demand, in full, without set-off or deduction. Neither the billing nor
the collection of use and occupancy charges shall be deemed a waiver of any right of Owner to
collect damages for Tenant&#146;s failure to vacate the Demised Premises after the expiration or sooner
termination of this Lease. The aforesaid provisions of this Article shall survive the expiration
of this Lease.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 66 &#151; DEPOSIT OF CHECKS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner&#146;s deposit of any checks delivered by Tenant simultaneously with Tenant&#146;s execution and
delivery of this Lease shall not constitute Owner&#146;s execution and delivery of this Lease.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 67 &#151; PARTIAL PAYMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Owner receives from Tenant any payment (&#147;Partial Payment&#148;) of less than the sum of the
Fixed Rent, Additional Rent and other charges then due and owing pursuant to the terms of this
Lease, Owner in its sole discretion may allocate such Partial Payment in whole or in part to any
Fixed annual Rent, any annual Rent and/or any other charges, or to any combination thereof.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 68 &#151; PORTERS WAGE RATE</B>
</DIV>


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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLE 69 &#150; SUBLEASING AND ASSIGNMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant may sublet all or a portion of the Demised Premises or assign this Lease with Owner&#146;s
prior written consent which shall not be unreasonably withheld, provided that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Tenant shall furnish Owner with the name and business address of the proposed subtenant or
assignee, a counterpart of the proposed sublease or assignment agreement, and satisfactory
information with respect to the nature and character of the business of the proposed subtenant or
assignee, together with current financial information and references reasonably satisfactory to
Owner.
</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;In the reasonable judgment of Owner the proposed subtenant or assignee is financially
responsible with respect to its proposed obligations under the proposed agreement and is of a
character engaged in a business which is in keeping with the standards of the Building and the
floor or floors in which the Demised Premises are located.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;An executed duplicate original in a form satisfactory to Owner for review by Owner&#146;s
counsel of such sublease or assignment agreement shall be delivered to Owner at least five (5)&nbsp;days
prior to the effective date thereof. In the event of any assignment, Tenant will deliver to Owner
at least five (5)&nbsp;days prior to the effective date thereof, an assumption agreement wherein the
assignee agrees to assume all of the terms, covenants and conditions of this Lease to be performed
by Tenant hereunder and which provides that Tenant named herein and such assignee shall after the
effective date of such assignment be jointly and severally liable for the performance of all of the
terms, covenants and conditions of this Lease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Tenant, at Tenant&#146;s expense, shall provide and permit reasonably appropriate means of
ingress to and egress from space sublet by Tenant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except for any subletting or assignment by Tenant to Owner, each subletting or assignment
shall be subject to all the covenants, agreements, terms, provisions and conditions contained in
this Lease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Tenant covenants and agrees that notwithstanding any subletting or assignment to Owner, or
to any other subtenant or assignee, and/or acceptance of Rent or Additional Rent by Owner from any
subtenant or assignee, Tenant shall and will remain fully liable for the payment of the annual Rent
and Additional Rent due and to become due hereunder and for the performance of all the covenants,
agreements, terms, provisions and conditions contained in this Lease on the part of the Tenant to
be performed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Tenant further agrees that it shall not at any time publicly advertise at a rental rate
less than the Fixed annual Rent plus any Additional Rent then payable hereunder, for assignment or
sublease of all of the space demised herein, or for sublease of any portion of the space demised
herein, but nothing herein contained shall be deemed to be Owner&#146;s consent to any assignment or
subletting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Notwithstanding anything contained herein to the contrary, Tenant shall have no right to
assign this Lease or to sublet the whole of the Demised Premises prior to or during the initial six
(6)&nbsp;months following the Commencement Date hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Tenant shall have no right to assign this Lease or sublet the whole or any part of the
Demised Premises to any party who is dealing with or has dealt with Owner or Owner&#146;s agent with
respect to space then still available for rent in the Building within the 12&nbsp;months immediately
preceding Owner&#146;s receipt of Tenant&#146;s notice pursuant to item II of this Article.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Such subletting or assignment shall not cause Owner any cost.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Tenant shall have complied and shall comply with each of the provisions in this Article
and Owner shall not have made any election as provided in item II hereof.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Tenant shall desire to sublet all or a portion of the Demised Premises or to assign this
Lease, Tenant shall send to Owner a written notice by registered or certified mail at least ninety
(90)&nbsp;days prior to the date such assignment or subletting is to commence stating (w)&nbsp;that the
intention is to assign the Lease, (x)&nbsp;the portion of the premises that the Tenant desires to
sublet, and if the portion intended to be sublet shall be less than the entire Demised Premises and
other than an entire floor or multiple thereof, such notice shall be accompanied by a reasonably
accurate floor plan of the premises to be sublet, (y)&nbsp;the term of such proposed subletting and (z)
the proposed commencement date of such subletting or assignment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If Tenant desires to sublet all of the Demised Premises or to assign this Lease, then
within sixty (60)&nbsp;days after receipt of the aforesaid notice Owner may notify Tenant that Owner
elects (1)&nbsp;to cancel this
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lease, in which event such cancellation shall become effective on the date set forth pursuant to
(z)&nbsp;above and this Lease shall thereupon terminate on said date with the same force and effect as
if said date were the expiration date of this Lease: or (2)&nbsp;to require Tenant to assign this Lease
to Owner effective from the date set forth pursuant to (z)&nbsp;above. In either event Tenant shall be
obligated to surrender possession of the Demised Premises in the same condition as Tenant is
obliged to surrender possession at the end of the term as provided in this Lease. Such assignment
to Owner shall provide that the parties to such assignment expressly negate any intention that any
estate created under such assignment be merged with any other estate held by either of said
parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If Tenant desires to sublet less than all of the Demised Premises then within sixty (60)
days after receipt of the aforesaid notice, Owner may notify Tenant that Owner elects to require
Tenant to sublease to Owner as subtenant of Tenant, the portion of the Demised Premises that Tenant
had specified in its notice to Owner, for the term, and from the commencement date specified in
said notice. The annual Rent and Additional Rent which Owner shall pay to Tenant shall be a pro
rata apportionment of the annual Rent and Additional Rent payable hereunder, and it is hereby
expressly agreed that such sublease to Owner shall be upon all the covenants, agreements, terms,
provisions and conditions contained in this Lease except for such thereof which are inapplicable,
and such sublease shall give Owner the unqualified and unrestricted right without Tenant&#146;s
permission to assign such sublease or any interest therein and/or to sublet the space covered by
such sublease or any part or parts of such space and to make or cause to have made or permit to be
made any and all changes, alterations, decorations, additions, and improvements in the space
covered by such sublease, and that such may be removed, in whole or part, at Owner&#146;s option, prior
to or upon the expiration or other termination of such sublease, provided that any damages or
injury caused by such removal shall be repaired. Such sublease to Owner shall also provide that the
parties to such sublease expressly negate any intention that any estate created under such sublease
be merged with any other estate held by either of said parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Tenant covenants and agrees that any such assignment or subletting to Owner or further
assignment or subletting by Owner or Owner&#146;s assignee or sublessee may be for any purpose or
purposes that Owner, in Owner&#146;s uncontrolled discretion, shall deem suitable or appropriate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If Owner should fail to exercise any of the elections granted to it pursuant to the
provisions of sub-paragraphs &#147;(a)&#148; or &#147;(b)&#148; of Item&nbsp;II of this Article and if Tenant should sublet
all or a portion of the Demised Premises for a rental in excess of the sum of annual Rent
stipulated herein and Additional Rent arising hereunder, then Tenant shall pay to Owner as
Additional Rent 50% of such excess amount. In computing such excess amount appropriate pro-rata
adjustments shall be made with respect to a subletting of less than all of the Demised Premises.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Tenant hereby waives any claim against Owner for money damages which it may have based
upon any assertion that Owner has unreasonably withheld or unreasonably delayed any consent to an
assignment or a subletting pursuant to this Article. Tenant agrees that its sole remedy shall be an
action or proceeding to enforce such provision or for specific performance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;For the purposes of this Article, assignment and subletting shall include any sale,
exchange or disposition of more than fifty percent (50%) of seller&#146;s shares, partnership or
ownership interests or any change of more than fifty percent (50%) of ownership, if Tenant is not
an individual.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;If this Lease is assigned, sublet or if the Demised Premises or any part thereof be
underlet or occupied by any party other than Tenant without Owner&#146;s written permission, Owner may,
in addition to any other remedy provided to Owner under this Lease or by law, after default by
Tenant, collect Rent from the assignee, sublessee, undertenant or occupant, and apply the net
amount collected to the Rent herein reserved. No assignment, subletting, underletting, occupancy
or collection shall be deemed a waiver of the provisions hereof, the acceptance of the assignee,
sublessee, undertenant or occupant as Tenant, or a release of Tenant from the further performance
by or enforcement upon Tenant of covenants herein contained, and shall not prevent Owner from
commencing an action or proceeding to terminate the prime Tenant&#146;s Lease and evict the prime Tenant
from the subject premises. Such a termination and eviction action or proceeding shall be based
upon the illegal assignment, subletting or occupancy by someone other than the Tenant. The
acceptance of Rent or other payments to Owner from the assignee, sublessee, undertenant or occupant
shall not in any way be construed to relieve Tenant from obtaining the express written consent of
Owner for such assignment, sublet or underletting and shall in no way be construed as acceptance
and/or acknowledgment of such action or person, nor shall it confer any rights upon such person.
</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;(h)&nbsp;Notwithstanding anything herein to the contrary contained in this Article or in this
Lease, Tenant expressly acknowledges and agrees that any proposed subleases to different
individuals and/or entities for portions of the Demised Premises, which portions together would
constitute the entirety of the Demised Premises shall not be considered a request to sublet the
entire Demised Premises and that Owner shall, for each such proposed sublease, have all the rights
and remedies provided for in this Lease. By way of example, but in no way limiting any of Owner&#146;s
rights hereunder, should Tenant propose to sublease a portion of the Demised Premises to an
individual or entity (Sublease #1) and should Tenant, simultaneously or shortly thereafter, propose
to sublease the remainder of the Demised Premises to Owner (Sublease #2), then, with respect to
Sublease #1 and Sublease #2, Owner shall have the right to (i)&nbsp;cancel this Lease in accordance with
II(a)(1) hereof; (ii)&nbsp;notify Tenant, in accordance with II(b), of Owner&#146;s election to require
Tenant to sublease either or both of the portions of the Demised Premises desired to be sublet
under Sublease #1 or Sublease #2 to Owner; or (iii)&nbsp;approve one of the proposed subleases without
any obligation to approve the other sublease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;In the event of such subletting or assignment, Tenant shall pay to Owner Five Hundred
Dollars ($500.00) as a fee for same, as well as all reasonable attorneys costs.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Lease is assigned and Owner consents to such assignment, Tenant covenants and agrees
that the term, covenants and conditions of this Lease may be changed, altered or modified in any
manner whatsoever by Owner and the assignee without prior written consent of Tenant, that no such
change, alteration or modification shall release Tenant from the performance by it of any of the
terms, covenant and conditions on its part to be performed under this Lease. Any such change,
alteration or modification which would have the effect of increasing or enlarging Tenant&#146;s
obligations or liabilities under this Lease shall not, to the extent only such increase or
enlargement, be binding upon Tenant.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 70 &#151; INTERCOM</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the term of this Lease, Tenant shall pay as Additional Rent the sum of $10.00 per month
for maintenance of the exterior buzzer and intercom system. If the system remains out of order for
an unreasonable period of time, Tenant shall not be responsible for intercom charges during such
time.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 71 &#151; REAL ESTATE TAX ESCALATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.1 As used herein:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.1.1 The term &#147;Escalation Year&#148; shall mean each calendar year which shall include any part
of the term.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.1.2 The term &#147;Taxes&#148; shall mean all real estate taxes, assessments (special or otherwise),
sewer rents, rates and charges, county taxes or any other governmental charge of a similar or
dissimilar nature, whether general, special, ordinary or extraordinary, foreseen or unforeseen,
which may be levied, assessed or imposed upon or with respect to all or any part of the land
(&#147;Land&#148;) upon which the Building is constructed or the Building by the City or County of New York
or any other taxing authority. If by law any assessment may be divided and paid in annual
installments, then, for the purposes of this Article (a)&nbsp;such assessment shall be deemed to have
been so divided upon application made thirty (30)&nbsp;days after the date of entry, whether before or
after the date hereof, (b)&nbsp;such assessment shall be deemed payable in the maximum number of annual
installments permitted by law, and (c)&nbsp;there shall be deemed included in Taxes for each Escalation
Year the annual installment of such assessment becoming payable during such Escalation Year,
together with interest payable during such Escalation Year on such annual installment and on all
installments thereafter becoming due as provided by law, all as if such assessment had been so
divided. If at any time during the Term the methods of taxation prevailing on the date hereof
shall be altered so that in lieu of or as an addition to or as a substitute for the whole or any
part of the Taxes now levied, assessed or imposed (a)&nbsp;a tax, assessment, levy, imposition or charge
based on the rents received therefrom whether or not wholly or partially as a capital levy or
otherwise, or (b)&nbsp;a tax, assessment, levy, imposition or charges measured by or based in whole or
in part upon all or any part of the Land or the Building and imposed on Owner, or (c)&nbsp;a license fee
measured by the Rent payable by Tenant to
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Owner, or (d)&nbsp;any other tax, levy, imposition, charge or license fee, however described or imposed,
then all such taxes, assessments, levies, impositions, charges or license fees or the part thereof
so measured or based, shall be deemed to be Taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.1.3 The term &#147;Owner&#146;s Basic Tax Liability&#148; shall mean the Taxes attributable to the Land
and the Building for the New York City fiscal year 2005/2006, and &#147;Owner&#146;s Base Year&#148; shall mean
the New York City fiscal year 2005/2006, commencing on July 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.1.4 The term &#147;Tenant&#146;s Proportionate Share&#148; shall mean two point five (2.5%) percent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.2 If Taxes payable in any Escalation Year falling wholly or partially within the Term shall
be in an amount constituting an increase above Owner&#146;s Basic Tax Liability, Tenant shall pay as
Additional Rent for such Escalation Year a sum equal to the Tenant&#146;s Proportionate Share of the
amount by which Taxes for such Escalation Year exceed Owner&#146;s Basic Tax Liability. Tenant shall, if
Owner so elects, pay its proportionate share of taxes in advance as Additional Rent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.3 If by any reason of any law, statute, regulation or agreement with a taxing or other
governmental authority (including, without limitation, a &#147;J-51 Program&#148;) any part of the Taxes
shall be reduced, i.e., suspended or abated, then there shall be subtracted from Taxes for purposes
of determining the Additional Rent payable hereunder, an amount equal to the decrease in such taxes
due to such suspension or abatement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.4 If, as a result of any application or proceeding brought by or on behalf of Owner for
reduction in the assessed valuation of the Real Property affecting any Escalation Year commencing
after Owner&#146;s Base Year, there shall be a decrease in Taxes for any such Escalation Year with
respect to which Owner shall have previously rendered an Owner&#146;s Statement, the Owner&#146;s Statement
next following such decrease shall include an adjustment for such Escalation Year reflecting such
decrease in Taxes, less all costs and expenses, including without limitation, any attorneys&#146; fees
incurred by Owner in connection with such application or proceeding with respect to any Escalation
Year occurring after Owner&#146;s Base Year.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 72 &#151; MISCELLANEOUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Lease embodies the entire agreement between Owner and Tenant. Any change, addition,
waiver, release or discharge of this Lease shall be ineffective unless signed by the party against
whom such change, addition, waiver, release or discharge is sought to be enforced. Each right,
power and remedy of Owner provided for in this Lease or now or hereafter existing at law, in
equity, by statute or otherwise shall be cumulative and concurrent and shall be in addition to
every other right, power or remedy provided for herein or now or hereafter existing at law, in
equity, by statute or otherwise, and the exercise or beginning of the exercise by Owner of any one
or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by
Owner of any or all such other rights, power or remedies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73. Tenant shall be allowed (4)&nbsp;four listings in the Building standard lobby directory and
three (3)&nbsp;listings in the Building standard hallway directory, for which Tenant agrees to reimburse
Owner. All signs must conform to the Building standard. In no event shall Tenant permit any sign
to be affixed directly to the entrance door to the Demised Premises.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74. If electric current being supplied to Tenant is by the public utility corporation serving
the part of the city where the Building is located, Tenant agrees to purchase same from such public
utility corporation. If electric current is supplied by Owner, Tenant covenants and agrees to
purchase same from Owner or Owner&#146;s designated agent at charges, terms and rates set, from time to
time, during the term of this Lease by Owner but not more than those specified in the service
classification in effect on January&nbsp;1, 1970 pursuant to which Owner then purchased electric current
from the public utility corporation serving the part of the city where the Building is located.
Said charges may be revised by Owner in order to maintain the return to Owner produced under the
foregoing in the event that the Public Service Commission approves changes in service
classifications, terms, rates or charges for such public utility during the term hereof. Where
more than one meter measures the service of Tenant in the Building, the service rendered through
each meter may be computed and billed separately in accordance with the rates herein. Bills
therefor shall be rendered at such times as Owner may elect. In the event that such bills are not
paid within five (5)&nbsp;days
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">after the same are rendered, Owner may without further notice discontinue the service of electric
current to the Demised Premises without releasing Tenant from any liability under this Lease and
without Owner or Owner&#146;s agent incurring any liability for any damage or loss sustained by Tenant
by such discontinuance of service. Owner shall not be liable or responsible to Tenant for any
loss or damage or expense which Tenant may sustain or incur if either the quantity or character of
electric services is changed or is no longer available or suitable for Tenant&#146;s requirements. Any
riser or risers to supply Tenant&#146;s electrical requirements, upon written request of Tenant, will be
installed by Owner, at the sole cost and expense of Tenant, if in Owner&#146;s sole judgment the same
are necessary and will not cause permanent damage or injury to the Building or the Demised Premises
or cause or create a dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants or occupants. In
addition to the installation of such riser or risers, Owner will also, at the sole cost and expense
of Tenant, install all other equipment proper and necessary in connection therewith subject to the
aforesaid terms and conditions. Tenant covenants and agrees that at all times its use of electric
current shall never exceed the capacity of existing feeders to the Building or the risers or wiring
installations. It is further covenanted and agreed by Tenant that all the aforesaid costs and
expenses shall be paid by Tenant to Owner within five (5)&nbsp;days after rendition of any bill or
statement to Tenant therefor. Owner may discontinue any of the aforesaid services upon thirty (30)
days notice to Tenant without being liable to Tenant therefor or without in any way affecting this
Lease or the liability of Tenant hereunder or causing a diminution of Rent, and the same shall not
be deemed to be a lessening or diminution of services within the meaning of any law, rule or
regulation now or hereafter enacted, promulgated or issued. In the event Owner gives such notice
of discontinuance, Owner shall permit Tenant to receive such service direct from said public
utility corporation, in which event, Tenant will at its own cost and expense furnish and install
all risers, service wiring, and switches that may be necessary for such installation and required
by the public utility company, and will at its own cost and expense maintain and keep in good
repair all such risers, wiring and switches. Tenant shall make no alterations or additions to the
electric equipment and/or appliances without the prior written consent of Owner in each instance.
Rigid conduit only will be allowed. If any tax is imposed upon Owner&#146;s receipts from the sale or
resale of electric energy or gas or telephone service to Tenant by any Federal, State or Municipal
Authority, Tenant covenants and agrees that where permitted by law, Tenant&#146;s pro rata share of such
taxes shall be passed on to and included in the bill of and paid by Tenant to Owner. Any sums due
and payable to Owner under this Article shall be collectible as Additional Rent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75. Tenant agrees to pay a Building Security charge of $40.00 per month.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76. Owner&#146;s Work within the Demised Premises shall consist of the following:
</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="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Construct three (3)&nbsp;offices, one
conference room with glass and sheetrock walls, one reception
area enclosure and one mechanical/storage room, including
Building standard interior doors, as indicated on the attached
&#147;Exhibit&nbsp;B&#148;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide and install Building
standard lighting and electrical outlets throughout the Demised
Premises;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paint newly constructed offices,
rooms and enclosure, Building standard white; 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="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide and install three (3)
window air conditioning units to cool the Demised Premises as
indicated on the attached &#147;Exhibit&nbsp;B&#148;, which units shall remain
in the Demised Premises and shall be considered leasehold
improvements at the expiration of this Lease or upon vacating of
the Demised Premises by Tenant.</TD>
</TR>

</TABLE>
</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;If Owner&#146;s Work has not been substantially completed by May 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2005, Tenant shall
receive one day of credit for each day until Owner&#146;s Work has been substantially completed and
Owner has notified Tenant of same. In the event Owner is unable to complete its work due to delays
caused by Tenant or its agents or contractors, then the date of completion of Owner&#146;s Work shall be
adjusted by deducting one day for each day of such delay.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE
77 &#151; MITIGATION OF DAMAGES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner shall use reasonable efforts to mitigate its damages in the event of Tenant&#146;s default
and a termination of this Lease, provided however, it is agreed that (i)&nbsp;Tenant shall reasonably
cooperate with Owner in any such efforts, (ii)&nbsp;Owner shall have no obligation to lease or relet the
Demised Premises at less than a market
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Rent for a term of less than five (5)&nbsp;years, pursuant to Owner&#146;s standard Lease form, and (iii)&nbsp;in
no event shall Owner be required to lease or relet the Demised Premises before any other available
space or unit in the Building.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE
78 &#151; &#147;GOOD GUY&#148; GUARANTEE OF LEASE</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to induce the aforesaid Owner to enter into this Lease and for other valuable
considerations, the receipt of which is hereby acknowledged, JOHN M. TORRENS, an individual
residing at 6368 Seneca Turnpike, Jamestown, NY 13078, whose Social Security number is ####-##-####
(&#147;Guarantor&#148;), hereby makes the following guarantee and agreement with and in favor of Owner and
its respective legal representations and assigns. The following personal guarantee is the only
provision of the Lease to which the Guarantor is personally liable, unless provided for elsewhere
in the Lease, as all other provisions, clauses and terms of this Lease are binding upon the Tenant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The undersigned guarantees to Owner, its successors and assigns, that he will advise Owner
of Tenant&#146;s intention to vacate the Demised Premises a minimum of four (4)&nbsp;months in advance and
that he will pay to Owner all Minimum Rent, Additional Rent and any and all other charges that have
accrued or may accrue under the terms of the Lease (hereinafter collectively referred to as
&#147;Accrued Rent&#148;), to the latest date that Tenant and its assigns and sublessees, if any, will have
completely performed the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Vacated and surrendered the Demised Premises in broom clean condition to Owner pursuant to
the terms of the Lease, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Delivered the keys to the Demised Premises to Owner, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Paid to Owner all Accrued Rent to and including the date which is the later of (a)&nbsp;the
actual receipt by Owner of said Accrued Rent, (b)&nbsp;the surrender of the Demised Premises, or (c)
receipt by Owner of the keys to the Demised Premises.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;The undersigned guarantees to Owner, its successors and assigns that he will pay to Owner
any damages, including legal fees, suffered or incurred by Owner as a result of Tenant holding over
in the Demised Premises after the expiration or sooner termination of the term of this Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;It is agreed that any security deposited under Article&nbsp;32 of the Lease shall not be
computed as a deduction from any amount payable by Tenant or Guarantor under the terms of this
Guarantee of Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;This Guarantee is absolute and unconditional and is a Guarantee of payment and not of
collection. The parties hereto waive all notice of nonpayment, nonperformance, nonobservance or
proof, or notice, or demand, whereby to charge the undersigned therefor, all of which the
undersigned expressly waives, and expressly agrees that the validity of this Guarantee, and the
obligation of the Guarantor hereto shall in no wise be terminated, affected or impaired by reason
of the assertion by Owner against Tenant of any of the rights or remedies reserved to Owner
pursuant to the performance of the within Lease. The undersigned further covenants and agrees that
this Guarantee shall remain and continue in full force and effect as to any renewal, modification
or extension of this Lease and during any period when Tenant is occupying the premises as a
&#147;statutory tenant&#148; (including, but not limited to a month-to-month tenancy). As a further
inducement to Owner to make this Lease and in consideration thereof, Owner and the undersigned
covenant and agree that in any action or proceeding brought by either Owner or the undersigned
against the other on any matters whatsoever arising out of, under, or by virtue of the terms of
this Lease or of this Guarantee, that Owner and the undersigned shall and do hereby waive trial by
jury.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;This Guarantee shall be construed in accordance with the Laws of the State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF the undersigned has set his hand this<U> 13th</U> day of April, 2005.
</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">              /s/ John M. Torrens
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JOHN M. TORRENS&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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<DESCRIPTION>EX-10.15
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    <TD width="15%">&nbsp;</TD>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 10.15</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This agreement made this <U>4</U> day of <U>January</U>, 2008 between<BR>
Oliva Holding, LLC<BR>
6724 Thompson Road<BR>
Syracuse, NY 13211

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the first part, (hereinafter referred to as Landlord) and

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>INTERACTIVE THERAPY GROUP<BR>
500 East Brighton Avenue<BR>
Syracuse, NY 13210</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the second part, (hereinafter referred to as Tenant)

</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">First: <U>Premises</U>. That the Landlord hereby lets to the Tenant and the Tenant hereby hires
from the Landlord the following Premises: Approximately 5,010 square feet of office/therapy space
(the &#147;Premises&#148;) in the northern wing of a 16,500 square foot building located at 1 Adler Drive,
East Syracuse, NY 13057 (the &#147;Building&#148;). A floor plan of the space is attached hereto and labeled
Exhibit&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Second: <U>Term, Rental and Use. </U>With the appurtenances for a term of five (5)&nbsp;years and two
(2)&nbsp;months to commence on the 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of March&nbsp;2008 (the &#147;Lease Commencement Date&#148;) and
to end on the 30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of April&nbsp;2013; provided however, such Lease Commencement Date may
not precede the completion of the improvements as agreed upon by Landlord and Tenant in the
Addendum attached to this Lease. After Landlord has completed said improvements and Tenant has
approved such improvements, Tenant shall certify in writing that the improvements are complete and
Landlord and Tenant shall certify in writing a new Lease Commencement Date if the improvements were
completed subsequent to the date provided above. Said written certifications shall be included as
attachments to this Lease. The ANNUAL RENT of this Lease is $55,110.00, which shall be due and
payable on the Lease Commencement Date and annually thereafter on the anniversary date of the Lease
Commencement Date. Notwithstanding the foregoing, provided that the TENANT shall not be in default
hereunder, the ANNUAL RENT shall be paid in equal monthly installments of $4,592.50 in advance on
the first day of each month at the principal office of the Landlord, without diminution, deduction
or set-off whatsoever and without prior notice or demand. Tenant, upon signing of this Lease, will
pay the Landlord the first months rent of ANNUAL RENT as well as a deposit equal to one (1)&nbsp;monthly
installment of ANNUAL RENT, totaling $9,185.00. Regular rental payments of ANNUAL RENT will
commence on May&nbsp;1, 2008. The premises are to be occupied by the Tenant for the following
purposes: General offices and children&#146;s therapy for the purpose of conducting Tenant&#146;s daily
operations and for no other purpose whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Third: <U>Utilities.</U> The Landlord shall provide and pay for all water, gas, electricity and
power (the &#147;Utilities&#148;) used on the Premises. The Base Year cost for Utilities is based upon $2.00
per sq. ft. of the 16,500 sq. ft. Building, which total Base Year cost is $33,000.00. Tenant shall
reimburse Landlord for its proportionate share of any increases in the cost of Utilities over the
Base Year. It is agreed that the Tenant will be billed on an annual basis for its proportionate
share (which is 30.4%) of the increase in the cost of Utilities over the Base Year cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fourth: <U>Services.</U> The Landlord shall provide, at Landlord&#146;s expense snow plowing, (from all
sidewalks, lands, drives and parking areas), lawn care and exterior trash and cardboard dumpsters.
Landlord shall provide these services in a manner to be expected for the operation of buildings in
the same class and location of the Building. Notwithstanding the above, Tenant will be responsible
for its own cleaning/janitorial service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fifth: <U>Insurance &#038; Taxes</U>. Tenant shall pay as additional rent its proportionate share of
any increase in the cost of building insurance (&#147;Insurance&#148;) and real estate taxes (including
property tax assessments, water and sewer rents, rates and charges, parking and environmental
surcharges and any other governmental charges, general and special, ordinary and extraordinary),
(&#147;Taxes&#148;) above the base year amounts paid by Landlord. Currently, the Premises are subject to the
following Insurance and Taxes (school taxes and state, town and county taxes). Base Year Insurance
is
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$1,749.60 for 2007-2008. School taxes are $11,862.12 for the 2007-2008 school year, Base Year
State, town and county taxes are $6,604.93 for the year 2008. It is agreed Tenant will be billed
in September (for insurance and school tax increases) and January (for county tax increases) for
its proportionate share (which is 30.4%) of the increase in the cost of Insurance and Taxes over
the Base Year cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sixth: <U>Assignment and Subletting. </U>Tenant shall not have the right and option to assign,
sublet, mortgage, or otherwise transfer this Lease, by operation of law or otherwise, in whole or
part, or rent desk space in the Premises without the written consent of Landlord, such consent
shall not be unreasonably withheld or delayed. An assignment made by Tenant with the written
consent of Landlord shall not release, discharge or otherwise affect the liability of Tenant under
this Lease, nor shall any such assignment or subletting relieve Tenant from the requirement of
obtaining the prior written consent of Landlord to any further assignment or subletting. If Tenant
causes an event of default to occur, Tenant shall assign to Landlord the rent due from any
subtenant of Tenant and shall authorize each subtenant to pay such rent directly to Landlord.
Tenant shall not have the right to sublease the Premises without Landlord&#146;s prior written consent.
Such consent will not be unreasonably withheld. Notwithstanding the foregoing, Tenant may freely
assign this Lease or sublet the Premises to a parent entity, a subsidiary entity, an affiliate
entity with a parent common to Tenant, or an entity acquiring control of Tenant (each a &#147;Related
Party&#148;) without Landlord&#146;s consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Seventh: <U>Repairs and Maintenance. </U>The Landlord shall make all repairs to the structure,
foundation, roof and exterior of the Premises and the Building. The Tenant shall at all times keep
the interior of the Premises including but not limited to the walls, doors, plumbing lighting
fixtures and electrical equipment in first class condition and repair (which is agreed they now
are), shall replace all broken glass, and at the end of the term shall peaceably quit and surrender
said Premises in such condition, ordinary wear and tear excepted. It is further understood and
agreed that Landlord will be responsible for normal maintenance to heating and air conditioning
equipment in the Premises, i.e., filter replacement, belts, motors, etc., and Tenant will be
responsible for electrical and plumbing maintenance of the Premises, i.e., light bulb and ballast
replacement, plugged toilets, etc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eighth: <U>Alterations.</U> The tenant shall not make any alterations or improvements upon the
Premises without the prior written consent of the Landlord, which may not be unreasonably withheld,
conditioned or delayed. Tenant shall not make or permit any defacement, injury or waste, in, to or
about the Premises. Except with respect to Tenant&#146;s trade fixtures, Tenant agrees that any changes
alterations, additions or improvements made by the Tenant shall at the Landlord&#146;s option remain in
and become a part of the Premises at the expiration of the lease or any renewal thereof, provided
Landlord notified Tenant of its option to retain such alterations, additions or improvements prior
to their installation. In the event, however, any alterations, additions or improvements are made
to the Premises and Landlord has not elected to retain such alterations, additions or improvements
as provided in the preceding sentence, Tenant shall, upon expiration of this Lease (as may be
extended), restore the Premises to their original condition and remove therefrom any additions,
improvements or alterations made thereto. Under no circumstances shall Tenant be prevented from
removing its trade fixtures; however, Tenant shall be obligated to restore the Premises to their
condition immediately prior to the installation of any such trade fixtures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ninth: <U>Rules and Regulations.</U> Tenant and its agents and employees shall comply with and
observe all reasonable rules and regulations concerning the use, management, operation, safety and
good order of the Premises and the Building which may from the time be promulgated by Landlord.
Said Rules are set forth 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The exterior for the Premises must be kept free of all debris not customarily removed
by Landlord&#146;s janitorial services. This includes pallets, drums, cardboard, etc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is expected that non-biodegradable items will not be flushed or thrown in the
toilets. These items include bur are not limited to sanitary napkins, paper towels,
plastic cups, etc. Should any of these items be the cause of a plumbing service call, the
Tenant will be charged any expense incurred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where parking lots have pavement markings, Tenant and its employees are expected to
park within the lines.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the leased areas where utilities are furnished, Landlord requires that each tenant
set back the thermostat during times when the outside temperature is below 50&#176; F and set
ahead when outside temperatures are above 72&#176; F after 6:00 PM. The purpose of this is to
minimize energy consumption during periods of cold and warm weather respectively.</TD>
</TR>

</TABLE>
</DIV>
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<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">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that Tenant elects to change any locks for the Premises, Tenant must
notify the Landlord in writing and forward a duplicate key for any lock changed. At the
end of the lease term, Tenant at its own expense will reinstall the original locks.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With the exception of service dogs (for the handicapped persons), animals (i.e., pets)
are not permitted in the Buildings or on the grounds.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Tenth: <U>Compliance with the Order of Public Authorities</U>. The Tenant shall comply with all
laws, ordinances, rules, regulations, or requirements of all Federal, State or Municipal
Governments and every department or bureau thereof applicable to the Premises and shall not do or
permit to be done any act upon the Premises whereby the rate of fire insurance upon the Building
may be increased or which shall be in violation of the rules of the Board of Fire Underwriters or
the provisions of the New York State standard form of fire insurance policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eleventh: <U>Subordination to Mortgages. </U>This lease is and shall be subject and subordinate
to any mortgage or mortgages now in force or which shall at any time be placed upon the Premises or
any part thereof or the Building. The tenant agrees that it will, within fifteen (15)&nbsp;days written
notice, execute and deliver such instruments as reasonably necessary to effect more fully such
subordination of this lease to the lien of any such mortgage or mortgages as shall be desired by
any mortgagee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Twelfth: <U>Landlord&#146;s Right to Access.</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tenant shall permit Landlord, or its authorized representatives, to enter the Premises
during usual business hours ( or at any time for the purpose of making emergency repairs)
for the purpose of (i)&nbsp;inspection; (ii)&nbsp;making repairs to the Premises or the Building; and
(iii)&nbsp;repairing, replacing, altering or changing existing connections from any fixtures,
pipes, wires, or ducts in the Premises, or making new such connections, provided, however,
that in non-emergency situations Landlord shall provide reasonable notice and shall make
reasonable efforts not to disrupt Tenant&#146;s business operations during normal business
hours.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landlord may, during the last one hundred twenty (120)&nbsp;days of the lease term, at
reasonable times after first notifying Tenant, show the Premises to prospective clients for
lease. If Tenant shall vacate the Premises during the last month of the term of this
Lease, Landlord shall have the right thereafter to enter the Premises and to commence
preparations for the succeeding tenant or for any other purpose whatsoever, without
affecting Tenant&#146;s obligation to pay rent for the full term of this Lease.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirteenth: <U>Surrender of Premises</U>. Tenant covenants, at the expiration or other
termination of the Lease, to remove its property and effects from the Premises and all keys, locks
and other fixtures connected therewith and to return the Premises to Landlord, in good repair,
order and condition, ordinary wear and tear and damage by fire or other casualty excepted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fourteenth: <U>Events of Default and Conditional Limitation</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If at any time prior to or during the term any one or more of the following events
occurs, each such event shall constitute an &#147;event of default&#148;:</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">i.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Tenant makes an assignment for the benefit of its creditors;<BR></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ii.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Tenant becomes insolvent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">iii.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>The leasehold estate hereby created in Tenant is taken on execution or
by other process of law;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">iv.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Any petition is filed against Tenant in any court whether or not
pursuant to any bankruptcy, reorganization, composition, extension, arrangement or
insolvency proceedings, and Tenant is thereafter adjudicated bankrupt, or such
petition is approved by the Court, or the Court assumes jurisdiction of the subject
matter and such proceedings are not dismissed within ninety (90)&nbsp;days after the
institution of the same; or any such petition is so filed by Tenant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">v.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>In any proceedings, a receiver or trustee is appointed for Tenant&#146;s
property and such receivership or trusteeship is not vacated or set aside within
ninety (90)&nbsp;days after the appointment of such receiver or trustee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">vi.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>There is a transfer or an attempted transfer of this Lease or of
Tenant&#146;s interest thereof in violation of the restrictions set forth in the Sixth
paragraph of this Lease;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">vii.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Tenant abandons the Premises;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">viii.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Tenant fails to comply with any local, state or federal law, rule or
regulation governing the use, handling and disposal of hazardous materials or is
otherwise in violation of the obligations contained in the Thirty-Fourth paragraph
of this Lease;</TD>
</TR>

</TABLE>
</DIV>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ix.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Tenant fails to pay any installment of the rent or any portion of any
such payment, when the same becomes due and payable, and such failure continues for
ten (10)&nbsp;days after the Landlord&#146;s notice that said rent is overdue; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">x.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Tenant fails to perform or observe any other requirement of this Lease
(not hereinbefore specifically referred to) on the part of Tenant to be performed
or observed and such failure continues for thirty (30)&nbsp;days after receipt of
written notice from Landlord to Tenant.</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This lease and the terms are expressly subject to the conditional limitation that upon
the happening of any one or more of the aforementioned events of default, Landlord, in
addition to the other rights and remedies it may have, shall have the right to immediately
declare this Lease terminated and the term ended, in which event all of the right, title
and interest of Tenant hereunder shall wholly cease and expire upon delivery by Landlord to
Tenant of a Notice of Termination. Notwithstanding the above language, Landlord will
notify Tenant via certified mail of Landlord&#146;s intent to terminate the Lease due to Tenants
uncured default and upon three (3)&nbsp;business days from the date of the letter, Tenant will
have an additional five (5)&nbsp;business days to cure such default or Tenant shall then quit
and surrender the Premises to Landlord in the manner and under the conditions as provided
for under this Lease, but Tenant shall remain liable as hereinafter provided.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fifteenth: <U>Landlord&#146;s Remedies</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If this Lease shall be terminated as provided in the Fourteenth paragraph, Landlord or
Landlord&#146;s agents or employees may immediately or at any time thereafter re-enter the
Premises and remove therefrom Tenant, its agents, employees, licenses, and any subtenants
and other persons, firms or corporations, and all or any of its or their property
therefrom, either by summary dispossess proceedings or by any suitable action or
proceedings at law or in equity and repossess and enjoy the Premises, together with all
alterations, additions and improvements thereto. Landlord, in the event of such re-entry
and repossession, may store Tenant&#146;s Personal Property in a public warehouse or elsewhere
at the cost of and for the account of Tenant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case of any such termination, re-entry of dispossession by summary proceedings or
otherwise, the rents and all other charges required to be paid up to the time of such
termination, re-entry or dispossession, shall be paid by Tenant, and Tenant also shall pay
to Landlord all expenses which Landlord may then or thereafter incur for legal expenses,
attorney&#146;s fees, brokerage commissions and all other costs paid or incurred by Landlord as
the result of such termination, re-entry or dispossession, and for restoring the Premises
to good order and condition and for altering and otherwise preparing the same for reletting
and for reletting thereof. Landlord may, at any time and from time to time, relet the
Premises, in whole or in part, for any commercially reasonable rental then obtainable
either in its own name or as agent of Tenant, for a term or terms which, at Landlord&#146;s
option, may be for the remainder of the then current term of this lease or for any longer
or shorter period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If this Lease be terminated as aforesaid, Tenant nevertheless covenants and agrees
notwithstanding any entry or re-entry by Landlord whether by summary proceedings,
termination or otherwise, to pay and be liable for:</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">i.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>ANNUAL RENT due and payable or that portion of ANNUAL RENT due and
payable which remains outstanding at the time of said termination; 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ii.</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>In the event the Premises be relet by Landlord, Tenant shall be
entitled to a credit (but not in excess of the rent, reserved under the terms of
this Lease) in the net amount of rent received by Landlord in reletting the
Premises after deduction of all expenses and costs incurred or paid as aforesaid in
reletting the Premises and in collecting the rent in connection therewith. At any
time after the termination of the Lease, in lieu of collecting any deficiencies, or
any further deficiencies, as aforesaid, Landlord shall, at Landlord&#146;s option, be
entitled to recover from Tenant, in addition to any other relief, such as a sum as
at the time of such termination represents the present value of the total rent, and
other benefits which would have accrued to Landlord under this Lease for the
remainder of the Lease term, as if the Lease had been fully complied with by
Tenant, less any monthly deficiencies for such period previously paid to Landlord
by Tenant, and less the fair value of the reletting of the Premises. Suit or suits
for the recovery of the deficiency or damages referred to in this Fifteenth
paragraph or for any installment or installments of rent hereunder, or for a sum
equal to any such installment or installments may be brought by Landlord at once or
from time to time at Landlord&#146;s election, and nothing in this Lease shall be deemed
to require Landlord to await the date whereon this Lease or the term hereof would
have naturally expired had there been no such default by Tenant or no such
termination. This subsection (ii)&nbsp;shall have no</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>force and effect unless Landlord has fulfilled its obligations under the law with
respect to mitigation of damages.</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landlord and Tenant, so far as permitted by law, waive and will waive trial by jury in
any action, proceeding or counterclaim brought by either of the parities hereto against the
other on any matters whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant&#146;s use or occupancy of the Premises, or any
claim or injury or damage. The terms &#147;enter&#148;, &#147;re-enter&#148;, &#147;entry&#148;, or &#147;re-entry&#148; as used
in this Lease are not restricted to their technical legal meaning. In the event Landlord
commences any proceedings for the recovery of possession of the Premises or to recover for
non-payment of rent, Tenant shall not interpose any compulsory counterclaim in any such
proceeding. This may not, however, be construed as a waiver of Tenant&#146;s rights to assert
such claim in any separate action or actions initiated by Tenant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No failure by Landlord to insist upon the strict performance of any covenant,
agreement, term or condition of this Lease or to exercise any right or remedy consequent
upon a breach thereof, and no acceptance of full or partial rent during the continuance of
any such breach, shall constitute a waiver of any such breach or of such covenant,
agreement, term and condition, and this Lease shall continue in full force and effect with
respect to any other then existing or subsequent breach thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of any breach or threatened breach by Tenant of any of the covenants,
agreement, terms or conditions contained in this Lease, Landlord shall be entitled to
enjoin such breach or threatened breach and shall have the rights to invoke any right or
remedy allowed at law or in equity, by statute or otherwise.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each right and remedy of Landlord provided for in this Lease shall be cumulative and
shall be in addition to every other right or remedy provided for in this Lease or now
hereafter existing at law or in equity, by statute or otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sixteenth: <U>Mechanic&#146;s Liens</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any mechanic&#146;s liens are filed against the Premises or any portion of the Building
based upon any act of Tenant or anyone claiming through Tenant, Tenant shall hold Landlord
harmless from all damages, claims and expenses arising therefrom, and Tenant, after notice
from Landlord (or any person in privity of estate with Landlord), shall forthwith commence
such action by bonding, deposit, payment or otherwise as will remove or satisfy such lien
within fifteen (15)&nbsp;days. In the event Tenant does not remove or satisfy said lien within
said fifteen (15)&nbsp;day period, Landlord shall have the right to do so by posting a bond or
undertaking, and Tenant agrees to reimburse Landlord for any and all expenses incurred by
Landlord in connection therewith five (5)&nbsp;days after receipt by Tenant of Landlord&#146;s
invoice therefor. These expenses shall include, but not limited to, filing fees, legal
fees and bond premiums.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nothing in this Sixteenth paragraph shall be deemed or construed as (i)&nbsp;Landlord&#146;s
consent to any person, firm or corporation for the performance of any work or services or
the supply of any materials to the Premises or any improvements thereon, or (ii)&nbsp;giving
Tenant or any other person, firm or corporation any right to contract for or to perform or
supply any work, services or materials that would permit or give rise to a lien against the
Premises or any part thereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Seventeenth: <U>Eminent Domain</U>. If at any time during the Term, the wholly or materially all
of the Premises shall be taken for any public or quasi-public purpose by any lawful power of
authority by the exercise of the right of condemnation or eminent domain or by agreement between
Landlord and those authorized to exercise such right, this Lease, and the Term shall terminate and
expire on the date of such taking and the Rental, and other sum or sums of money and other charges
herein reserved and provided to be paid by the Tenant shall be apportioned and paid to in the date
of such taking. The term &#147;materially all of the Premises&#148; shall be deemed to mean such portion of
the Premises, as when so taken, would leave remaining a balance of the Premises which, due to
either to the area so taken or the location of the part so taken in relation to the part not so
taken, would not under economic conditions, zoning laws or building regulations then existing or
prevailing, readily accommodate a new building or buildings of nature similar to the Building at
the date of such taking of floor areas sufficient together with buildings not taken in the
condemnation, to produce a fair and reasonable return, after payment of all operating expenses
thereof. If less than materially all of the premises shall be taken, Landlord shall restore the
Premises to Tenant&#146;s reasonable satisfaction and rent shall abate proportionately until such time
as the Premises is restored. Landlord&#146;s failure to make such restoration within 180&nbsp;days of such
taking shall grant to Tenant an option to terminate this Lease. Although all damages in the event
of any condemnation shall belong to the Landlord whether such damages are awarded as compensation
for diminution in value of the leasehold or to the fee of the Premises, Tenant shall have the right
to claim and recover from the condemning authority, but not from the Landlord, such compensation as
may
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /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">be separately awarded or recoverable by Tenant in Tenant&#146;s own right on account of any and all
damage to Tenant&#146;s business by reason of the condemnation and for or on account of any cost or loss
to which Tenant might be put in removing Tenant&#146;s merchandise, furniture, fixtures, leasehold
improvements and equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eighteenth: <U>Casualty. </U> It shall be the responsibility of the Landlord to repair all damage
to the Building due to fire or other casualty within 120&nbsp;days of the occurrence of such fire or
other casualty; subject to such delays as may be caused by adjustments with insurance carriers or
due to excusable delays. Landlord shall not be responsible to repair damage to personal property,
equipment or trade fixtures of tenant, it being the sole responsibility of Tenant to procure any
insurance it desires for such items. Notwithstanding anything herein contained to the contrary, in
the event of damage to the extent of 50% or more to the Premises or Building (as determined and
established by Landlord&#146;s appraisal), by fire or other casualty, the Landlord may, at its option,
terminate this Lease upon 30&nbsp;days written notice to the Tenant. Until repairs are completed,
Tenant&#146;s obligation with respect to rent shall be abated on the basis of the portion of the
Premises, which are available for the ordinary conduct of Tenant&#146;s business. In the event that the
Premises are damaged to the extent that the Premises are unavailable, the entire rent shall be
abated until after the Premises are rebuilt to a condition where Tenant is able to utilize the
Premises for the ordinary conduct of its business. If Landlord has not restored the Premises
within 180&nbsp;days following the occurrence of such casualty, Tenant shall have the option to
terminate this Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nineteenth: <U>Insurance</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Fire. </U> At all times during the term of this Lease, Landlord shall keep all
improvements on the Premises insured against loss or damage by risk now or hereafter
embraced by &#147;all risks&#148; and &#147;difference in conditions&#148; coverage, and against such risks as
Landlord from time to time reasonably may designate in amounts sufficient to prevent
Landlord from becoming a co-insurer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Liability Insurance. </U>Tenant shall, at its own cost and expense, obtain blanket
public liability insurance covering the interest of the Tenant in the Premises, said public
liability to be in the sum of $1,000,000.00 in case of bodily injury or death and in the
case of property damage in an amount reasonably declared necessary by the Landlord. The
Tenant will provide Landlord with a certificate of insurance from an insurance company
reasonably acceptable to Landlord stating that the Landlord is named as an additional
insured under Tenant&#146;s blanket public liability insurance policy. Tenant shall save
Landlord harmless and indemnify from all injury, loss, claims or damage to any person or
property which occurs on the Premises and shall pay all of Landlord&#146;s attorneys&#146; fees
incurred in connection with the same, unless the same shall have been caused by the act or
negligence of the Landlord, its agents, servants or employees. Upon failure at any time on
the part of the Tenant to pay the premiums for the insurance required by this clause, the
landlord shall be at liberty from time to time as often as such failure shall occur, to pay
premiums therefore, and any and all sums so paid for insurance by the Landlord shall be and
become and hereby are declared to be additional rent under this Lease due and payable on
the next rent day.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twentieth: <U>Limitation of Landlord&#146;s Liability</U>. Except if caused by the negligence of
Landlord, its agents or employees, Landlord shall not be liable to Tenant for any loss, damage or
expense of any kind resulting from, and no claims shall be made against Landlord by Tenant for:
</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>any injury or damage to person or property occurring in, on or about the
Premises;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the theft, loss or destruction of any personal property contained in the
Premises or any storage rooms provided by Landlord;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the necessity of repairing the Premises or any other portion of the Building,
except to the extent Landlord is responsible for such repairs in accordance with the
terms of this Lease;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fire or other casualty;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any overflow or leakage upon or into the Premises of water, rain, snow, steam,
gas or electricity, or any breakage or bursting of pipes, conduits or other plumbing
fixtures or appliances; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any loss or damage to property of the Tenant entrusted with Landlord&#146;s
employees.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All references to Tenant in the proceeding sentence shall be deemed to include Tenant&#146;s employees,
agents and other persons claiming the right to be in the Premises or the Building under or through
Tenant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Twenty-First: <U>Indemnification.</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Tenant&#146;s Indemnity</U>. Tenant covenants to indemnify and save harmless the
Landlord from and against any and all liability, damages, expenses, fees (including
reasonable attorneys&#146; fees), penalties, actions, causes of</TD>
</TR>

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

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<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>action, suits, costs, claims or judgments arising from injury during said lease term to
person or property occasioned wholly or in part by any act or omission of Tenant, its
employees, customers and invitees. Tenant shall and will, at its own cost and expense
defend any and all suits or actions that may be brought against Landlord or in which
Landlord may be impleaded with others upon any such above mentioned claim or claims, and in
the event of failure of Tenant so to do, Landlord may, at the cost and expense of Tenant and
upon prior written notice to Tenant, defend any and all such suits or actions, and Tenant
shall and will satisfy, pay and discharge any and all judgments that may be recovered
against Landlord in any such suit or actions in which Landlord may be a party or in which
Landlord shall become liable as aforesaid, then Landlord may pay the same with any interest
costs or other charges which may have accrued thereon and the amount so paid by Landlord,
with interest thereon at the current prime interest rate per annum from the date of payment,
shall become and be due and payable by Tenant as additional rent with the next installment
of rent which shall become due after such payment by Landlord.</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Landlord&#146;s Indemnity</U>. Landlord covenants to indemnify and save harmless the
Tenant from and against any and all liability, damages, expenses, fees (including
reasonable attorney&#146;s fees), penalties, actions, causes of action, suits, costs, claims or
judgments arising from injury during said lease term to person or property occasioned
wholly or in part by any act or omission of Landlord, its employees, customers and
invitees. Landlord shall and will, at its own cost and expense defend any and all suits or
actions that may be brought against Tenant or in which Tenant may be impleaded with others
upon any such above mentioned claim or claims, and in the event of the failure of Landlord
so to do, Tenant may, at the cost and expense of Landlord and upon prior written notice to
Landlord, defend any and all such suits or actions, and Landlord shall and will satisfy,
pay and discharge any and all judgements that may be recovered against Tenant in any such
suit or actions in which Tenant may be a party or in which Tenant shall become liable as
aforesaid, then Tenant may pay the same with any interest costs or other charges which may
have accrued thereon and the amount so paid by Tenant, with interest thereon at current
prime interest rate per annum from the date of payment, shall become and be due and payable
by Landlord and may be discharged as a credit to Tenant&#146;s remaining rental obligation under
the Lease.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Second: <U>Subrogation</U>. Landlord and Tenant and all parties claiming under them,
mutually release and discharge each other from all claims and liabilities for damage or destruction
by fire or any other peril included in the extended coverage form of fire insurance during the term
of this Lease and each of the parties hereto agree to have a waiver of subrogation clause attached
to and made a part of its insurance policy or policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Third: <U>Limitation on Personal Liability</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Landlord shall be an individual, a partnership or a co-tenancy, so long as such
individual or the partners or co-tenants constituting Landlord at the date of execution of
this Lease and from time to time thereafter as shown by a partnership certificate then in
effect or as shown by the record fee title, or any of them, or members of their immediate
family, or trusts for the benefit of any of the foregoing persons, directly or indirectly,
own an interest in the premises or in any partnership, or any trust, co-tenancy or other
unincorporated entity constituting the Landlord hereunder, Tenant shall look solely to the
estate and property of the Landlord in the Premises for the satisfaction of Tenant&#146;s
remedies for the collection of a judgment (or other judicial process) requiring the payment
of money by the Landlord in the event of any default or breach by the Landlord with respect
to any of the terms, covenants and conditions of the Lease to be observed and/or performed
by the Landlord and any other obligation of Landlord created by or under this Lease and no
other property or assets of the Landlord or its partners, beneficiaries or co-tenants shall
be subject to levy, execution or other enforcement for the satisfaction of Tenant&#146;s
remedies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The term &#147;Landlord&#148;, as used in this Lease, so far as covenants and agreements on the
part of the Landlord are concerned, shall be limited to mean and include only the owner or
owners at the time in question of the Premises and Lease and in the event of any transfer
or transfers of the title to the said Lease and/or the Premises, Landlord herein named (and
in case of any subsequent transfers or conveyances, the then grantor), including each of
its partners shall be automatically freed and relieved from and after the date of such
transfer and conveyance of all liability as respects the performance of any covenants and
agreements on the part of Landlord contained in this Lease thereafter to be performed, and
it shall be deemed and construed without further agreement that such grantee or transferee
has assumed and agreed to be bound by all the covenants and agreements in this Lease
contained, to be performed on the part of the Landlord, and the Landlord or the grantor
shall turn over to the grantee all monies, if any, then held by Landlord, or such</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>grantor on behalf of Tenant and shall assign to such grantee all right, title and interest
of Landlord or such grantor in and to the sums held by and deposited under the terms,
covenants and conditions of this Lease.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Fourth: <U>Governing Law</U>. This Lease shall be construed and enforced in accordance
with the laws of the State of New York. If any provisions of this Lease shall, to any extent, be
held invalid or unenforceable, the remainder of this Lease shall not be affected thereby and shall
continue to be valid and enforceable to the fullest extent permitted by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Fifth: <U>Entire Agreement</U>. This Lease contains the entire agreement of the parties in
regard to the Premises. There are no oral agreements existing between them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Sixth: <U>Notices</U>. All notices required or permitted to be given under this Lease,
other than statutory demands, or notices, shall be in writing and shall be deemed to have been duly
given if made in person or sent by certified or regular mail, postage prepaid, to respective
address of each party set forth at the beginning of the Lease. Service shall be complete upon such
personal delivery or mailing except in the case of a notice to change an address in which case
service shall be complete when the notice is received by the addressee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Seventh: <U>Right of Landlord to Cure Tenant&#146;s Default</U>. If Tenant defaults in the
making of any payment or in doing any act required under this Lease, Landlord may make such payment
or do such act and the expense thereof shall be paid by the Tenant with interest at the current
prime rate from the date paid and shall constitute additional rent and be payable with the next
monthly installment of basic rent. The Landlord shall not be estopped from the pursuit of any
remedy to which it would otherwise be entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Eighth: <U>Waiver of Jury Trial</U>. Landlord and Tenant covenant and agree that in any
action, proceeding or counterclaim brought by either the Landlord or the Tenant against the other
on any matter whatsoever arising out of, under, or by virtue of the terms of this Lease or the
Tenant&#146;s occupancy, the Landlord and Tenant shall and do hereby waive trial by jury. The Tenant
hereby expressly waives any and all right of redemption in the event Tenant shall be dispossessed
by judgment or warrant in such form and contents reasonably proposed by Landlord.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty-Ninth: <U>Estoppel Certificates</U>. Tenant agrees, as reasonably requested from time to
time and upon not less than fifteen (15)&nbsp;days prior notice by Landlord, to execute, acknowledge and
deliver to the Landlord an estoppel certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirtieth: <U>Waiver. </U>No waiver by Landlord or Tenant of any breach of any term, covenant or
condition contained in this Lease shall operate as a waiver of such term, covenant or condition
itself or of any subsequent breach thereof. No payment by Tenant or receipt by Landlord of a
lesser amount than the monthly installments of Basic Rent or additional rent stipulated in this
Lease shall be deemed to be other than on account of the earliest stipulated rent nor shall any
endorsement or statement on any check or letter accompanying a check for payment of rent be deemed
an accord and satisfaction, and the Landlord may accept such check or payment without prejudice to
Landlord&#146;s right to recover the balance of such rent or to pursue any other remedy provided by this
Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirty-First: <U>No Representations by Landlord</U>. Neither Landlord nor any agent or employee
of Landlord had made any representations or promises with respect to the Premises or the Building
except as expressly set forth in this Lease, and no rights, privileges, easements or licenses shall
be acquired by Tenant except as expressly set forth in this Lease. Tenant, by taking possession of
the Premises, shall accept the same &#147;AS IS&#148;, except for the improvements listed in the addendum,
and such taking of possession shall be conclusive evidence that the Premises and the Buildings are
in good and satisfactory condition at the time of such taking of possession.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirty-Second: <U>Quiet Enjoyment</U>. Tenant, upon paying the rent and additional rent and
observing and performing all the terms, covenants and conditions contained in this Lease on
Tenant&#146;s part be observed and performed, shall peaceably and quietly enjoy the Premises without
hindrance or molestation by Landlord or any party claiming through Landlord.
</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: 12pt">Thirty-Third: <U>Miscellaneous.</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All covenants in this Lease which are binding upon Tenant shall be construed to be
equally applicable to and binding Tenant&#146;s agents, employees and others claiming the right
to be in the Premises or in the Building through or under Tenant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If more than one individual, firm, or corporation shall join as Tenant, the singular
context shall be construed to be plural wherever necessary and the covenants of Tenant
shall be the joint and several obligations of each party signing as Tenant, and when the
parties signing as Tenant are partners, shall be the obligations of the firm and of the
individual members thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Feminine or neuter pronouns shall be substituted for those of the masculine form, and
the plural shall be substituted for the singular, wherever the context shall require.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Lease shall be binding upon and shall inure to the benefit of the parties hereto
and their respective heirs, personal representatives, successors and assigns. The words
&#147;Landlord&#148; and &#147;Tenant&#148; include and bind and benefit the legal representative, successors
and assigns of the Landlord and Tenant, respectively, and if there be more than one tenant,
than, all the covenants and agreements binding the Tenant shall be deemed joint and
several.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Thirty-Fourth: <U>Environmental Covenants. </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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Hazardous Material&#148; shall mean any pollutant, contaminant, hazardous,
dangerous or toxic chemical, material, waste or other substance which poses a hazard to
the environment or to health and safety, including, without limitation: (i)&nbsp;any solid
or hazardous waste, toxic, or hazardous substance, pollutant, contaminant, dangerous or
toxic chemical material, or other substance within the meaning of any Environmental
Law; (ii) &#147;hazardous substances&#148;, as defined by CERCLA; (iii) &#147;hazardous wastes&#148;, as
defined by the Resource Conservation and Recovery Act, P.L. 94-580, and all amendments
thereto and reauthorizations thereof (&#147;RCRA&#148;); (iv)&nbsp;petroleum, crude oil or any
fraction thereof; (v)&nbsp;natural gas, natural gas liquids, liquefied natural gas (all the
foregoing collectively called &#147;Natural Gas Products&#148;), synthetic gas or mixtures of
Natural Gas Products and synthetic gas; (vi)&nbsp;any radioactive material, including any
source, special nuclear or byproduct material as defined at 42 U.S.C. &#167;2011 et seq. and
amendments thereto and reauthorizations thereof; (vii)&nbsp;asbestos-containing materials in
any form or condition; and (viii)&nbsp;polychlorinated biphenyls.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Environmental Laws&#148; shall mean all federal, state and local laws, statutes,
regulations, rules, codes, ordinances and policies and all revisions and amendments
thereto or reauthorizations thereof during the Term, and the common law, relating to
environmental matters or contamination of any type whatsoever, including, without
limitation: (i)&nbsp;treatment, storage, disposal, generation or transportation of any
Hazardous Material; (ii)&nbsp;air, water, or noise pollution, including, without limitation,
discharges to publicly-owned treatment works; (iii)&nbsp;surface or ground water
contamination; (iv)&nbsp;spills, discharges, leaks, emissions, escapes, dumping or other
releases or threatened releases, including, without limitation, those subject to the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
P.L.96-510, as reauthorized and amended from time to time (&#147;CERCLA&#148;), into the
environment of any Hazardous Material, whether or not notification or reporting to any
federal, state or local agency was or is required; (v)&nbsp;the protection of wildlife,
marine sanctuaries or wetlands; (vi)&nbsp;the protection of natural resources; (vii)
above-ground or under-ground storage tanks, vessels and related equipment; (viii)
abandoned or discarded barrels, containers or other closed receptacles; (ix)&nbsp;reporting
or notification to governmental agencies or third parties including, without
limitation, notification or reporting of the presence or emission of any Hazardous
Material; (x)&nbsp;health and safety of employees or other persons; or (xi)&nbsp;otherwise
relating to the manufacture, processing, use, distribution, sale, treatment, storage
disposal, transportation or handling of Hazardous Materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At all times, Tenant, at its sole cost and expense, shall comply in all
material respects with all and not otherwise become subject to liability under
Environmental Laws applicable to Tenant, its use, operations or property on or at the
Premises including without limitation, obtaining any and all licenses, permits,
consents and approvals, making all reports, registrations and notifications, and
obtaining all bonds, insurance and financial insurance required under any Environmental
Law (&#147;Environmental Filings and Approvals&#148;). Tenant promptly shall provide Landlord
copies of all Environmental Filings and Approvals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tenant agrees to indemnify, defend (with counsel, experts and consultants
reasonably acceptable to Landlord and at Tenant&#146;s sole cost and expense) and hold
Landlord and its beneficiaries, partners, shareholders, officers, directors, employees,
agents, and their respective executors, administrators,</TD>
</TR>

</TABLE>
</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 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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal representatives, heirs, successors and assigns (herein collectively called
&#147;Landlord&#146;s Affiliates&#148;) free and harmless from and against Tenant&#146;s failure to comply
with subparagraph (c)&nbsp;above.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landlord agrees to indemnify, defend (with counsel, experts and consultants
reasonably acceptable to Tenant and at Landlord&#146;s sole cost and expense) and hold
Tenant and its beneficiaries, partners, shareholders, officers, directors, employees,
agents and his and their respective executors, administrators, personal
representatives, heirs, successors and assigns free and harmless from and against: (i)
Landlord&#146;s failure to comply with any Environmental Law or (ii)&nbsp;any environmental
condition or Hazardous Materials existing on the Premises on the date hereof
(including, without limitation, relating to any underground storage tanks and any
asbestos-containing materials, if any).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirty-Fifth: <U>Late Charges</U>. The rent specified in this Lease is due and payable as set
forth on page two (2)&nbsp;of this Lease. If payment is not received on or before the tenth (10)&nbsp;day
following the due date, a late charge of 5% will be assessed against Tenant. Said late charge can
be paid separately or will be included in the following months rent. In the event payment is not
received within twenty (20)&nbsp;days of the due date, Tenant shall pay, in addition to the late charge,
interest on the unpaid amount from the due date of twelve percent per annum. If miscellaneous
charges (insurance, tax and utility increases, snow plowing and lawn care, etc.) are not paid
within 30&nbsp;days of the billing date, Tenant will be charged 5% of the total amount of the arrears as
a late charge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirty-Six: <U>Parking. </U> Tenant and its employees and visitors may use the parking area
annexed to the Building for parking in common with other tenants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirty-Seventh: <U>Signage. </U>Tenant shall have the right to erect signage in a manner that is
consistent with signage available to other tenants of the Building, including the right to utilize
any central marquis or office directory and to place signage on the doors or windows of the
Premises.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thirty-Eighth: <U>Expiration of Lease Term</U>. Upon expiration or other termination of this
Lease, Tenant and Landlord will inspect the Premises and mutually agree to the condition of the
Premises with regard to damages versus normal wear and tear. Upon expiration of this Lease without
default hereunder, and provided that Tenant, without necessity of any notice from Landlord,
surrenders the Premises broom clean and in good order, repair and condition reasonable wear and
tear excepted, Landlord shall refund to Tenant the sum of $4,592.50, less deductions for damage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, the parties hereto have executed this Lease on the day and year first 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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Tenant:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Landlord:</TD>
    <TD>&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>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><I>Interactive Therapy Group</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><I>Olivia Holding, LLC</I></TD>
    <TD>&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>
</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">/s/ John M. Torrens
</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">/s/ Stephen A Oliva, Jr.</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" 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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John M Torrens
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stephen A. Oliva, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Manager</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.16
<SEQUENCE>4
<FILENAME>y01854exv10w16.htm
<DESCRIPTION>EX-10.16
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.16</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 10.16</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ALBERTA PROPERTIES LLC STANDARD OFFICE LEASE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THIS AGREEMENT made this 4<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of February&nbsp;2009 between Alberta Properties LLC, its
principal place of business at 331 Alberta Drive, Amherst, New York 14226 hereinafter referred to
as the Owner, and Interactive Therapy Group, 1586 Eggert Road, Amherst, New York 14226 hereinafter
referred to as the Tenant:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WITNESSETH:</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="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap"><B>Premises</B></FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">That the said Owner has agreed to let, and by these presents does so lease
to Tenant the following premises:</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;110 on the ground floor of the building located at 331 Alberta Drive,
Amherst, New York containing approximately 1300 square feet per attached Sketch Plan &#147;A&#148;.</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"><B>TERM</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 9%; text-indent: -5%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The term of this lease shall be for a period of two (2)&nbsp;years commencing upon April
1, 2009 and terminating upon March&nbsp;31, 2011. Tenant shall have one (1)&nbsp;option (the
&#147;Renewal Option&#148;) to extend the term of the Lease for a two (2)&nbsp;year renewal period
(the &#147;Renewal Period&#148;), commencing on April&nbsp;1, 2011 and terminating on March&nbsp;31, 2013,
upon terms and conditions as set forth below in <B>RENT</B>. The Renewal Option may be
exercised only by Tenant giving Owner written notice of such exercise at least six (6)
months prior to the expiration date of the Lease.</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RENT</B>
</DIV>


<DIV align="left" style="margin-left: 9%; text-indent: -5%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The Tenant agrees to pay the Owner at 331 Alberta Drive, Amherst, New York 14226
the annual rent of $19,200.00 to be paid in equal monthly installments of $1,600.00 for
the two years of this Lease on the first day of each and every month of this Lease
without demand and without offset or deductions of any kind.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%">If Tenant shall validly exercise the Renewal Option, than the Lease shall be
extended for the Renewal Period at an annual rent of $20,400.00 to be paid in equal
monthly installments of $1,700.00 on the first day of each and every month of the
Renewal Period without demand and without offset or deductions of any kind.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>TENANTS COVENANTS</B>
</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">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Tenant hereby covenants and agrees as follows:</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not to use said premises or any part thereof for any purposes other
than the purpose of its usual business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not to let, sell, underlet or assign over the said premises or any part
thereof, for the whole or any part of said term, without first requesting
cancellation of the lease. If Owner declines to so cancel, Tenant may assign to a
successor of equal financial stability acceptable to the Ownler. Consent to such
assignment will not be unreasonably withheld.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This item left intentionally blank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To allow the Owner in person, or by agent, to enter said premises at
all reasonable times of the day upon reasonable notice, however, Owner shall not
unreasonably interfere with Tenant&#146;s business or Tenant&#146;s use of its premises, and
within six months prior to the expiration of the lease, to allow the Owner or his
agent to place on or about said premises, notices indicating that the premises are
for sale or rent; and to allow the Owner or his agent to enter upon and pass
through and over said premises at all reasonable times and upon reasonable notice
for the purposes of showing the same to persons wishing to purchase or lease the
same.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To obey and carry out all Federal, State, County and Municipal Laws,
regulations, rules and ordinances in regard to the premises hereby leased and their
use, and subject to Section &#147;6&#148; hereof,
to take such care of said premises as may be required by any and all Federal, State,
County and</TD>
</TR>

</TABLE>
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal authorities and departments, or any of them; and to obey all
lawful requirements of the New York Fire Insurance Rating Organization, or any
similar body, with reference to insurance premium rate upon the building shall be
increased, by reason of any act or omission or commission on the part of Tenant or
by reason of the nature of the occupancy of the premises, the Tenant agrees to pay
the amount of any such increase; and to save the Owner and hold the Owner harmless
from any expense, loss or damage by reason of the violation of such laws,
regulations, rules, ordinances and by reason of the Tenant&#146;s negligence.</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To observe and keep all the rules and regulations of the electric, gas
and water companies and the sewer authority, supplying such premises with
electricity, gas, water or use of sewer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not to erect any signs or to letter windows or doors without express
written authority of Owner.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To return the premises broom-clean at the expiration of the lease to
the Owner and in the same condition as when taken, reasonable wear and tear thereof
excepted.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To observe and keep all reasonable rules and regulations of the Owner
regarding the use of the building.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OWNER COVENANTS</B>
</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">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Owner covenants and agrees as follows:</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To provide at the start of the term of this lease the subject premises
in first-class condition in its present configuration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To supply aforesaid premises at its own expense during regular business
hours air conditioning, heat, electricity, gas, water and janitorial services, but
it shall not be liable for any injury, damage or loss occasioned in the rendering
of such services or resulting from any interruption thereof, due to any cause
except negligence of Owner or its employees, agents, or servants and except as
otherwise provided herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To maintain the lavatory, toilets and toilet rooms in good lighted and
ventilated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To keep and maintain the sidewalks, corridors, stairways and all other
means of access and egress for the demised premises in good repair and safe
condition and well lighted, free and clear of ice, snow and debris.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Owner, at its expense, shall maintain the common areas of the Building,
and any areas of the Building under the exclusive control of Owner, in a clean and
healthful condition and will comply with all federal, state, county and municipal
laws, regulations, rules, and ordinances in regard to the Building and shall save
Tenant and hold Tenant harmless from any expense, loss, or damages by reason of the
violation of such laws, regulations, rules, ordinances, and requirements or by
reason of damages that might be sustained by reason of the acts, omissions, or
negligence of Owner or its employees, agents, or servants.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>DEFAULTS</B>
</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">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If default be made in the payment of the rent or any part thereof the Owner shall give
written notice of such default to the Tenant and the Tenant shall have five (5)&nbsp;days after
receipt of such notice to cure such default, but upon Tenant&#146;s failure to cure the default
within said period then and in such case the owner may terminate the term of this lease
without further notice, and all rents will accelerate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of a default by either party in the obligation of Tenant to pay rent, the
other party may give to the defaulting party written notice thereof describing the default
and thereupon unless the defaulting party, within thirty (30)&nbsp;days from the receipt of said
notice, shall begin and continue to prompt completion the steps necessary to cure the
default, the non-defaulting party may terminate this lease by giving the defaulting party
not less than ten (10)&nbsp;days notice of the time of termination.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Paragraph&nbsp;3, whether or not any such right of termination is
exercised, shall not be a waiver of any right of breach of contract or a waiver of any other
provisions of this lease.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If said premises shall at any time become vacant during the said term in consequence of
the removal of the Tenant, for nonpayment of rent, by legal process, or any other cause,
the Owner may re-enter the same, and use such force for that purpose as the Owner shall
think fit, without being liable to any prosecution thereof and may thereupon treat the said
lease as terminated, and re-let said premises for their own use; or the Owner may re-let
said premises as the agent of the Tenant applying avails thereof to the expenses that may
accrue in reentering and then to the payment of the rent due as herein provided, and the
balance to pay over to Tenant; or may hold the Tenant for any balance remaining due after
so applying the</TD>
</TR>




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



</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>proceeds, and the
right to hold the Tenant for such balance shall survive the issuance of any warrant of
cancellation of this lease.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>DAMAGE OR DESTRUCTION</B>
</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">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the leased premises shall be destroyed or damaged by fire or other cause, without or
with the fault or negligence of either party all rebuilding, restoration and repairs shall
be done by Owner at its expense, as soon as reasonably possible.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD colspan="0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If after any partial damage any portion of the premises shall be usable by Tenant, the
rent shall be apportioned according to such usable portion until all restoration and repairs
are completed. If the premises shall be totally destroyed, rendered untenantable, the rent
shall be wholly abated until the premises including all equipment as originally installed as
a part thereof shall be fully replaced or repaired, and until Tenant shall have reasonable
time to replace all attachments, installments, and other property installed by it, and to
replace its furniture and office equipment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If after any such occurrence it is reasonably certain or is found that the building cannot
be restored as stated above within (6)&nbsp;months from the date of the occurrence, either party
hereto shall have the right as its election to terminate this lease, effective as of the
date of such occurrence, by giving written notice to the other as soon as reasonably
possible. In the event of such termination Owner shall not be obligated to make any
restoration of the premises.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All repairs to the premises and to the plumbing, heating, air conditioning, electric
wiring and lighting apparatus and structural repairs to the building and common areas
necessary to keep the same in proper order shall be made by the Owner at the Owner&#146;s
expense, unless said repairs are made necessary through the carelessness or neglect of the
Tenant, its agents, employees or servants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any fixture of a removable nature constructed and placed in the demised premises at the
expense of the Tenant, shall remain the property of the Tenant and may be removed by the
Tenant at the termination of its occupancy of the demised premises; and in case of damage
or disfigurement to walls or floors caused by such removal, the cost of reasonable repairs
of the damage to them, shall be borne by the Tenant. The Tenant covenants that it will not
make any alterations in or to the demised premises without first obtaining the consent of
the Owner in writing, which consent shall not be unreasonably withheld.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CONDEMNATION</B>
</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">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the whole or any part of the premises hereby demised shall be taken or condemned by
any competent authority for any public use or purpose, than the term hereby granted shall
cease from the time when possession of the part so taken shall be required for such public
purpose and without apportionment of claim to any such award, the current rent, however, in
such case to be apportioned. However, nothing herein shall be deemed to give Owner any
interest in or to require Tenant to assign to Owner any award made to Tenant for the taking
of personal property or fixtures belonging to Tenant or for the interruption of or damages
to Tenants business or for Tenant&#146;s moving expense.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>END OF TERM</B>
</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">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should the Tenant continue to occupy the demised premises after the expiration of the
term of this lease or any renewal thereof, with the consent of the Owner, such tenancy
shall be from month to month and in no event from year to year or from term to term, and
such month to month tenancy shall be on the same terms, covenants and conditions of this
lease but at the monthly rental fixed by Owner but nothing herein contained shall be deemed
to waive any right the Owner may have to recover possession of the demised premises upon
the expiration of the term of this lease or any renewal thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant agrees that the sidewalks, entries, passages, staircases, vestibules, hallways
and parking lot shall not be obstructed or used for any purpose other than ingress and
egress; the Tenant will not make or permit any unseemly, improper, or disturbing noise or
otherwise unreasonably interfere with other tenants.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PARKING</B>
</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">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the demised premises, Tenant shall have the right of non-exclusive use
in common with others, of automobile parking areas, driveways, serviceways, loading
facilities, staircases, vestibules, hallways, elevators, and other facilities as may be
designated by Owner from time to time, all subject to the terms and conditions of this
lease agreement and to reasonable rules and regulations for the use thereof as prescribed
from time to time by Owner. Tenant and his employees, invitees or guests shall not park
cars in
</TD>
</TR>
</TABLE>
</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 style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>parking lot spaces reserved on property of which demised premises are a part or in driveways
or serviceways except in areas which may be designated for Tenant parking.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>QUIET ENJOYMENT</B>
</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">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner covenants that Tenant upon paying the rent reserved herein and performing all the
covenants of this lease on its part to be performed shall and may peaceably and quietly
have, hold and enjoy the premises for the full term hereof free from molestation, eviction
or disturbances by Owner or by any other person or persons lawfully claiming same.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SUCCESSORS AND ASSIGNS</B>
</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">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The covenants, conditions and agreements contained in this lease shall bind and inure
to the benefit of the Owner and the Tenant and their respective executors, administrators,
successors and assigns and may not be changed orally, but only by an agreement in writing
and signed by the party against whom enforcement of any waiver, change, modification, or
discharge is sought.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SUBORDINATION</B>
</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">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Lease is and shall be subject and subordinate to the indenture and all mortgages
which may now or hereafter affect the Leased Premises; and to all renewals, modifications,
consolidations, replacements and extensions thereof. Although the subordination provision
shall be deemed for all purposes to be automatic and effective without any further
instrument on the part of the Tenant, the Tenant shall execute any further instrument
reasonably requested by the Landlord to confirm such subordination. The Tenant hereby
irrevocably constitutes and appoints the Landlord as the Tenant&#146;s attorney-in-fact to
execute any such instrument for and on behalf of the Tenant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD colspan="0">Notwithstanding the foregoing, Tenants right to quiet possession and enjoyment of the
premises shall not be disturbed so long as Tenant complies with all of the terms,
obligations, and conditions hereunder.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ENTIRE AGREEMENT This lease constitutes the entire understanding between the parties. No
variation or modification of this Lease shall be deemed valid unless in writing and signed by the
parties hereto.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>IN WITNESS WHEREOF, the Owner and Tenant have respectively signed and sealed these presents on the
day and year first above written.</B>
</DIV>

<DIV align="center" style="margin-left: 5%">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>Alberta Properties LLC:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">Witness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Stephen S. Obletz
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</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>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Interactive Therapy Group</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">/s/ Gary J Knauer
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Witness
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Gary Gelman
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Gary Gelman, Chairman
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /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; margin-left: 2%"><B>ESCALATION</B>
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of this Paragraph:</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="14%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Tax Base Year</U><br>
Year Ending 12/31/2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Operating Expense Base Year</U><br>
Year Ending 12/31/2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Computation Year</U> means each<br>
Year Beginning 04/01/09</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Tenant&#146;s Proportionate Share</U> means the ratio
expressed as a percentage of the area of the Premises
approximately 1300 square feet to the entire rentable floor space in the
Building. Tenant&#146;s proportionate share is 9.6%</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Real Estate Taxes </U>means the dollar value of the
real estate
taxes assessed upon the Building and the land upon which it stands.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Operating Expense </U>means the actual expenses
incurred and paid
by the Landlord for the operation and maintenance of the Building in
accordance with accepted principals of sound management and accounting
practices as applied to first-class office buildings, but not limited to:</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="20%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Janitor labor and supplies</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintenance and engineering labor and
supplies</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance applicable solely to the
Building and its operation</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Water and fuel</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electricity used by Landlord in the
operation and maintenance of the Building</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Salaries and wages of employees, other
than employees above grade of Building Manager</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Painting, snow removal and other contract
services</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Security services</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tenant shall make an additional rent payment equal to the Tenant&#146;s
Proportionate Share of any increase in the Real Estate Taxes and/or Operating
Expense for each Computation Year of the Tenant&#146;s Lease over the Real Estate Taxes
and/or Operating Expense for the Base Year together with a six percent (6%)
administrative fee. <SUP style="font-size: 85%; vertical-align: text-top">1</SUP></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>For each computation Year, Owner shall furnish to Tenant Statements
setting forth in reasonable detail the Real Estate Taxes and Operating Expense for
the Base Year and the Computation Year, as well as the difference between the two
and the Tenant&#146;s Proportionate Share of the difference. Tenant shall pay Tenant&#146;s
Proportionate Share as set forth in the Statement within thirty (30)&nbsp;days of
receipt of said Statement.</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="14%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is hereby agreed that in the event the Owner
consents to the subletting of the lease, if the rent shall be more than the
rent in this lease, the increases in rent shall be automatically assigned
and payable to the Owner.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tenant shall pay for all electric bulbs, lamps, tubes,
ballast&#146;s and starters.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rents received after the fifth day of the month are
subject to a five percent (5%) late charge.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tenant is required to provide protective pads under
each desk and Shepherd casters or equivalent on all chairs and movable
office furniture.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>INSURANCE REQUIREMENTS</B>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Landlord&#146;s Insurance</U>. At all times during the Term, Landlord will carry and
maintain (1)&nbsp;fire and extended coverage Insurance covering the Building and the Demised
Premises and the Building&#146;s equipment and common area furnishings and leasehold
improvements in the Premises, and (2)&nbsp;public liability and property damage Insurance in
such amounts as Landlord determines from time to time in its reasonable discretion.</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><U>Tenant&#146;s Insurance</U>. At all times during the Term, Tenant will carry and
maintain, at Tenant&#146;s expense, the following insurance in the amounts specified below or
such other amounts as Landlord may from time to time reasonably request, with insurance
companies on forms satisfactory to Landlord.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The annual increase in Real Estate Tax and/or Operating
Expenses is limited to 3.5% on a cumulative basis.</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">&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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Public Liability and property damage liability insurance, with a
combined single occurrence limit of not less than $1,000,000. All such insurance
will specifically include, without limitation, contractual liability coverage for
the performance by Tenant of the agreements set forth in this Lease.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance covering all of Tenant&#146;s equipment, trade fixtures,
appliances, furniture, furnishings and personal property, from time to time in, on
or upon the Premises, in an amount not less than the full replacement cost without
deduction for depreciation from time to time during the term of this Lease,
providing protection against all perils included within the classification of fire,
extended coverage, vandalism, malicious mischief, special extended peril (all
risk), boiler, flood, glass breakage and sprinkler leakage. All policy proceeds
will be used for the repair or replacement of the property damaged or destroyed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Workman&#146;s compensation insurance insuring against and satisfying
Tenant&#146;s obligations and liabilities under the workman&#146;s compensation laws of the
state in which the Premises are located.</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Forms of the Policies</U>. All policies of liability insurance which Tenant is
obligated to maintain according to the Lease (other than any policy of workmen&#146;s
compensation insurance) will name Landlord and such other persons or firms as Landlord
specifies from time to time as additional insureds. Insurance certificates of original
policies (together with copies of the endorsements naming Landlord and any others specified
by Landlord as additional insureds) and evidence of the payment of all premiums of such
policies will be delivered to Landlord prior to Tenant&#146;s occupancy of the Premises and from
time to time at least ten (10)&nbsp;days prior to the expiration of the terms of each such
policy. All public liability and property damage liability maintained by Tenant will
contain a provision that Landlord and any other insureds will be entitled to recover under
such policies for any loss sustained by Landlord and the other additional insureds, its
agents and employees as a result of the acts or omissions of Tenant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All such policies maintained by Tenant will provide that they may not be terminated or
amended except after thirty (30)&nbsp;days prior written notice to Landlord.<BR>
<br style="font-size: 6pt">
All public liability, property damage liability and casualty policies maintained by Tenant
will be written as primary policies, not contributing with and not supplemental to the
coverage that Landlord may carry. Insurance required to be maintained by Tenant may be
subject to a deductible up to five hundred dollars ($500.00).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Waiver of Subrogation</U>. Landlord and Tenant each waive any and all rights to
recover against each other except to the extent loss or damage is suffered as a result of
the acts, omissions, or negligence of Owner or its employees, agents, or servants.
Landlord and Tenant, from time to time, will cause their respective insurers to issue an
appropriate waiver of subrogation rights endorsements to all policies of insurance carried
in connection with the Project or the Premises or the contents of the Project or Premises.
Tenant agrees to cause all other occupants of the Premises claiming by, under, or through
Tenant to execute and deliver to Landlord such a waiver of claims and to obtain such a
waiver of subrogation rights endorsements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Adequacy of Coverage</U>. Landlord, its agents and employees make no
representation that the limits of liability specified to be carried by Tenant are adequate
to protect Tenant. If Tenant believes that any of such insurance coverage is inadequate,
Tenant will obtain, at Tenant&#146;s expense, such additional insurance coverage as Tenant deems
adequate.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RULES AND REGULATIONS</B>
</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">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The sidewalks, walks, entries, corridors, concourses, ramps, staircases, and elevators
shall not be obstructed or used for any purpose other than ingress and egress to and from
the respective premises.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Landlord shall not be responsible to any Tenant for loss of property from the
premises, however occurring, unless caused by the acts, omissions, or gross negligence or
willful act of the Landlord, its agents, servants, or employees, including its independent
contractors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No signs or advertisements shall be put in or upon any part of the building except on
the doors of the premises and on the Directory Boards, and then only of such color, size,
style and material as shall be approved in writing by Landlord. A Directory Board in a
conspicuous place will be provided by Landlord.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No awnings or other projections shall be attached to the outside walls of the building
without the prior written consent of the Landlord.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No persons shall disturb the occupants of the building by use of any musical
instruments, making unseemly noises, or by interference in any way. No dogs or other
animals will be allowed in the building.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No installations, including, without limitation, telegraph, telephone, television,
radio or other wires or instruments, shall be introduced into the building without
Landlord&#146;s prior written approval.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Tenant shall permit or allow any employee or other person to conduct any business
enterprises of any kind in or from the premises other than that specifically provided for
in the Lease.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Only workmen employed, designated or approved by Landlord may be employed by Tenants
for repairs, installations, alterations, painting, material moving or other similar work
that may be done on the Premises. Such approval shall not be unreasonably withheld.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Canvassing, soliciting, or peddling in the building are prohibited.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tenant acknowledges that this is a &#147;smoke free&#148; building and will obey all Owner&#146;s
rules and regulations in this regard.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No vending machines of any kind are permitted on the premises.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Tenant shall, with the exception of hot beverages, permit the sale or service of
food or beverages to its employees or to others, or cause or permit any odors of cooking or
other processes or any unusual or objectionable odors to emanate from the Premises.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Tenant shall install or permit installation or use of any machine dispensing goods for
sale, including, without limitation, foods, beverages, cigarettes or candy, without the
consent of the Landlord.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><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">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electrical appliances or equipment rated higher than 15 Amperes must have specific
authorization for use.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>5
<FILENAME>y01854exv23w1.htm
<DESCRIPTION>EX-23.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-23.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<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">



</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>EXHIBIT 23.1</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors<BR>
American Claims Evaluation, Inc.

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the incorporation by reference in the registration statements (No.&nbsp;333-147442, No.
333-39071 and No.&nbsp;333-136319) on Form S-8 of American Claims Evaluation, Inc. and subsidiary of our
report dated June&nbsp;24, 2009 on the consolidated balance sheet of American Claims Evaluation, Inc.
and subsidiary as of March&nbsp;31, 2009 and 2008, and the related consolidated statements of
operations, stockholders&#146; equity and cash flows for the years then ended, which report appears in
this March&nbsp;31, 2009 Annual Report on Form 10-K of American Claims Evaluation, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ Holtz Rubenstein Reminick LLP
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Melville, New York<BR>
June&nbsp;24, 2009

</DIV>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>y01854exv31w1.htm
<DESCRIPTION>EX-31.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-31.1</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 31.1</B>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">I, Gary Gelman, certify that:
</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>I have reviewed this annual report on Form 10-K of American Claims Evaluation, Inc.;</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>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</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">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the small business issuer as of, and for, the periods presented
in this report;</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">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The small business issuer&#146;s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in
Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f)) for the small business issuer and have:</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the small business issuer, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this
report is being prepared;</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>Designed such internal controls over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles;</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>Evaluated the effectiveness of the small business issuer&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; 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">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disclosed in this report any change in the small business issuer&#146;s internal control
over financial reporting that occurred during the small business issuer&#146;s most recent
fiscal quarter (the small business issuer&#146;s fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the
small business issuer&#146;s internal control over financial reporting; and</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The small business issuer&#146;s other certifying officer(s) and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the small business
issuer&#146;s auditors and the audit committee of the small business issuer&#146;s board of directors
(or persons performing the equivalent functions):</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the small business issuer&#146;s ability to record, process, summarize and report financial
information; 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">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees who
have a significant role in the small business issuer&#146;s internal control over financial
reporting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: June&nbsp;24, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Gary Gelman

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gary Gelman<BR>
Chief Executive Officer

</DIV>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>y01854exv31w2.htm
<DESCRIPTION>EX-31.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-31.2</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 31.2</B>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">I, Gary J. Knauer, certify that:
</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>I have reviewed this annual report on Form 10-K of American Claims Evaluation, Inc.;</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>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</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">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the small business issuer as of, and for, the periods presented
in this report;</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">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The small business issuer&#146;s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in
Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f)) for the small business issuer and have:</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the small business issuer, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this
report is being prepared;</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>Designed such internal controls over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles;</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>Evaluated the effectiveness of the small business issuer&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; 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">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disclosed in this report any change in the small business issuer&#146;s internal control
over financial reporting that occurred during the small business issuer&#146;s most recent
fiscal quarter (the small business issuer&#146;s fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the
small business issuer&#146;s internal control over financial reporting; and</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The small business issuer&#146;s other certifying officer(s) and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the small business
issuer&#146;s auditors and the audit committee of the small business issuer&#146;s board of directors
(or persons performing the equivalent functions):</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the small business issuer&#146;s ability to record, process, summarize and report financial
information; 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">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees who
have a significant role in the small business issuer&#146;s internal control over financial
reporting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: June&nbsp;24, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Gary J. Knauer

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gary J. Knauer<BR>
Chief Financial Officer

</DIV>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>8
<FILENAME>y01854exv32w1.htm
<DESCRIPTION>EX-32.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-32.1</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 32.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report of American Claims Evaluation, Inc. (the &#147;Company&#148;) on
Form 10-K for the year ended March&nbsp;31, 2009 as filed with the Securities and Exchange Commission on
the date hereof (the &#147;Report&#148;), I, Gary Gelman, Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002,
that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;The Report fully complies with the requirements of section 13(a) or 15(d)
of
the Securities Exchange Act of 1934; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;The information contained in the Report fairly presents, in all material
respects,
the financial condition and result of operations of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ Gary Gelman
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gary Gelman<BR>
Chief Executive Officer<BR>
June&nbsp;24, 2009

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A signed original of this written statement required by Section&nbsp;906, or other document
authenticating, acknowledging, or otherwise adopting the signature that appears in typed form
within the electronic version of this written statement required by Section&nbsp;906, has been provided
to American Claims Evaluation, Inc. and will be retained by American Claims Evaluation, Inc. and
furnished to the Securities and Exchange Commission or its staff upon request.
</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>9
<FILENAME>y01854exv32w2.htm
<DESCRIPTION>EX-32.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-32.2</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 32.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report of American Claims Evaluation, Inc. (the &#147;Company&#148;) on
Form 10-K for the year ended March&nbsp;31, 2009, as filed with the Securities and Exchange Commission
on the date hereof (the &#147;Report&#148;), I, Gary J. Knauer, Chief Financial Officer of the Company,
certify pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of
2002, that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;The Report fully complies with the requirements of section 13(a) or
15(d) of
the Securities Exchange Act of 1934; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;The information contained in the Report fairly represents, in all
material
respects, the financial condition and result of operations of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ Gary J. Knauer
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gary J. Knauer<BR>
Chief Financial Officer<BR>
June&nbsp;24, 2009

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A signed original of this written statement required by Section&nbsp;906, or other document
authenticating, acknowledging, or otherwise adopting the signature that appears in typed form
within the electronic version of this written statement required by Section&nbsp;906, has been provided
to American Claims Evaluation, Inc. and will be retained by American Claims Evaluation, Inc. and
furnished to the Securities and Exchange Commission or its staff upon request.
</DIV>



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