<SUBMISSION>
<ACCESSION-NUMBER>0001104659-02-004103
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>8
<PERIOD>20020630
<FILING-DATE>20020814
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ALTERNATIVE RESOURCES CORP
<CIK>0000920521
<ASSIGNED-SIC>7363
<IRS-NUMBER>382791069
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-23940
<FILM-NUMBER>02736055
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>100 TRI STATE INTERNATIONAL
<STREET2>STE 300
<CITY>LINCOLNSHIRE
<STATE>IL
<ZIP>60069
<PHONE>8473171000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>75 TRI STATE INTERNATIONAL
<STREET2>STE 100
<CITY>LINCOLNSHIRE
<STATE>IL
<ZIP>60069
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>j4412_10q.htm
<DESCRIPTION>10-Q
<TEXT>
<html>



<head>



<title>SECURITIES AND EXCHANGE COMMISSION</title>



</head>



<body link="blue" vlink="purple">



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



<div style="border:none;border-top:double windowtext 9.0pt;padding:0in 0in 0in 0in;">



<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



</div>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>



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

D.C. 20549</font></b></p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM 10-Q</font></b></p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934</font></b></p>



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



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

quarterly period ended June 30, 2002</font></b></p>



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



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

file number 0-23940</font></b></p>



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



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



<div align="center">



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">ALTERNATIVE

  RESOURCES CORPORATION</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

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

  registrant as specified in its charter)</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.48%;">

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

  </td>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">38-2791069</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  jurisdiction of<br>

  incorporation or organization)</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>

  Identification No.)</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.48%;">

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

  </td>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">600 Hart Road, Suite 300,

  Barrington, IL</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">60010</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  executive offices)</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.26%;">

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

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

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

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(847) 381-6701</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone

  number, including area code)</font></p>

  </td>

 </tr>

</table>



</div>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate by check mark whether the registrant (1) has filed all reports

required to be filed by Section 13 or 15(d) of the Securities Exchange Act of

1934 during the preceding 12 months (or for such shorter period that the

registrant was required to file such reports), and (2) has been subject to such

filing requirements for the past 90 days.&#160;

YES&#160;&#160;&#160; </font><font face="Wingdings" style="font-family:Wingdings;">&#253;</font>&#160; NO&#160;&#160;&#160; <font face="Wingdings" style="font-family:Wingdings;">o</font>.</p>



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



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate the number of shares outstanding of each of the issuer&#146;s

classes of common stock, as of the latest practicable date:</font></p>



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



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17,702,819 shares of Common Stock outstanding as of

August 05, 2002.</font></p>



<div style="border:none;border-bottom:double windowtext 9.0pt;padding:0in 0in 0in 0in;">



<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



</div>



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORM 10-Q</font></b></p>



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



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



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="721" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#PartIFinancialInformation" title="Click to goto PART I - FINANCIAL INFORMATION">PART I. FINANCIAL

  INFORMATION</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

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

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

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

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item1_FinancialStatements" title="Click to goto Item 1. - Financial Statements">Item 1.</a></font></p>

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item1_FinancialStatements" title="Click to goto Item 1. - Financial Statements">Financial Statements</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

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

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

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

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ConsolidatedBalanceSheets" title="Click to goto CONSOLIDATED BALANCE SHEETS ">Consolidated Balance

  Sheets at June 30, 2002 (Unaudited) and December 31, 2001</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

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

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

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

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ConsolidatedStatementsOfOperations" title="Click to goto CONSOLIDATED STATEMENTS OF OPERATIONS ">Consolidated

  Statements of Operations for the three and six months ended June 30, 2002 and

  2001 (Unaudited)</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

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

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

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

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ConsolidatedStatementsOfComprehensive" title="Click to goto CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ">Consolidated

  Statements of Comprehensive Income (Loss) for the three and six months ended

  June 30, 2002 and 2001 (Unaudited)</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

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

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

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

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ConsolidatedStatementsOfCashFlows" title="Click to goto CONSOLIDATED STATEMENTS OF CASH FLOWS ">Consolidated

  Statements of Cash Flows for the six months ended&#160; June 30, 2002 and 2001 (Unaudited)</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

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

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

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

  </td>

 </tr>

 <tr>

  <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="694" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:520.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#NotesToConsolidatedFinancialStatemen" title="Click to goto NOTES TO CONSOLIDATED FINANCIAL STATEMENTS">Notes to

  Consolidated Financial Statements (Unaudited)</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

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

  </td>

 </tr>

 <tr>

  <td width="47" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:35.5pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item2_ManagementsDiscussionAndAn" title="Click to goto Item 2. - Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations">Item

  2.</a></font></p>

  </td>

  <td width="674" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:505.3pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item2_ManagementsDiscussionAndAn" title="Click to goto Item 2. - Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations">Management&#146;s

  Discussion and Analysis of Financial Condition and Results of Operations</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="47" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:35.5pt;">

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

  </td>

  <td width="674" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:505.3pt;">

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

  </td>

 </tr>

 <tr>

  <td width="47" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:35.5pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item3_QuantitativeAndQualitativeDi" title="Click to goto Item 3.&#150; Quantitative and Qualitative Disclosures About Market Risk">Item

  3.</a></font></p>

  </td>

  <td width="674" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:505.3pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item3_QuantitativeAndQualitativeDi" title="Click to goto Item 3.&#150; Quantitative and Qualitative Disclosures About Market Risk">Quantitative

  and Qualitative Disclosures About Market Risk.</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="47" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:35.5pt;">

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

  </td>

  <td width="674" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:505.3pt;">

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

  </td>

 </tr>

 <tr>

  <td width="721" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#PartIiOtherInformation" title="Click to goto PART II - OTHER INFORMATION">PART II. OTHER INFORMATION</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

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

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

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

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item4_SubmissionOfMattersToAVot" title="Click to goto Item 4. - Submission of Matters to a Vote of Security Holders">Item

  4.</a></font></p>

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item4_SubmissionOfMattersToAVot" title="Click to goto Item 4. - Submission of Matters to a Vote of Security Holders">Submission

  of Matters to a Vote of Security Holders</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

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

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

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

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item6_ExhibitsAndReportsOnForm8" title="Click to goto Item 6. - Exhibits and Reports on Form 8-K">Item 6.</a></font></p>

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Item6_ExhibitsAndReportsOnForm8" title="Click to goto Item 6. - Exhibits and Reports on Form 8-K">Exhibits and

  Reports on Form 8-K.</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="48" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:35.95pt;">

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

  </td>

  <td width="673" valign="top" style="padding:0in 0in 0in 0in;width:504.85pt;">

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

  </td>

 </tr>

 <tr>

  <td width="721" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Signatures" title="Click to goto SIGNATURES">SIGNATURES.</a></font></p>

  </td>

 </tr>

 <tr height="0">

  <td width="27" style="border:none;"></td>

  <td width="20" style="border:none;"></td>

  <td width="1" style="border:none;"></td>

  <td width="673" style="border:none;"></td>

 </tr>

</table>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><a name="PartIFinancialInformation"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PART I - FINANCIAL INFORMATION</font></b></a></p>



<p style="margin:0in 0in .0001pt;"><a name="Item1_FinancialStatements"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1. - Financial Statements</font></b></a></p>



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



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="ConsolidatedBalanceSheets"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONSOLIDATED

BALANCE SHEETS</font></b></a></p>



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

share data)</font></p>



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



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="70%" valign="bottom" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">December

  31,<br>

  2001</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">June 30,<br>

  2002</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="70%" valign="bottom" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">(Unaudited)</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="70%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Current assets:</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash and cash

  equivalents</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">127</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Trade accounts

  receivable, net of allowance for doubtful accounts</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36,489</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33,192</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prepaid expenses</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,091</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,080</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Income taxes

  receivable</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,497</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,103</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other

  receivables</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">234</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">320</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  assets</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40,438</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37,748</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Property and equipment:</font></b></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Office equipment</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,270</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,288</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Furniture and

  fixtures</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,389</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,389</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Software</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19,355</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19,487</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leasehold

  improvements</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,972</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,005</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31,986</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32,169</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Less accumulated

  depreciation and amortization</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(17,394</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(19,598</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net property and

  equipment</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,592</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12,571</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other assets:</font></b></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Goodwill, net of

  amortization</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,723</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,723</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other assets</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,639</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,581</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  assets</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,362</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,304</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59,392</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55,623</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p align="center" style="margin:0in 0in .0001pt 40.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LIABILITIES

  AND STOCKHOLDERS&#146; EQUITY</font></b></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Current liabilities:</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash overdraft</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,404</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,165</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounts payable</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12,883</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12,362</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payroll and

  related expenses</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,861</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,074</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accrued expenses</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,350</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,510</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

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

  liabilities</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27,498</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24,111</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26,877</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25,799</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

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

  liabilities</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">358</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">371</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  liabilities</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54,733</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50,281</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stockholders&#146; equity:</font></b></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred stock,

  $.01 par value, 1,000,000 shares authorized, none issued and outstanding</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common stock,

  $.01 par value, 50,000,000 shares authorized, 17,556,569 and 17,702,819

  shares issued at December 31, 2001 and June 30, 2002, respectively</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">176</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">178</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additional

  paid-in capital</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27,508</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30,458</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred

  compensation</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(97</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accumulated

  other comprehensive loss</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(44</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(55</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accumulated

  deficit</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(18,087</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(20,442</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9,456</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,139</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Less: Treasury

  stock, at cost, 585,000 shares</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4,797</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4,797</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" style="padding:0in 0in 0in 0in;width:70.34%;">

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

  stockholders&#146; equity</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,659</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:12.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,342</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

 <tr>

  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:70.34%;">

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

  liabilities and stockholders&#146; equity</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59,392</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.78%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.2%;">

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

  </td>

  <td width="11%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.34%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55,623</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.04%;">

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

  </td>

 </tr>

</table>



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



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

Consolidated Financial Statements</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="ConsolidatedStatementsOfOperations"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONSOLIDATED STATEMENTS OF OPERATIONS</font></b></a></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(In thousands, except per

share data)</font></p>



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



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.02%;">

 <tr>

  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="24%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:24.68%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Three

  Months<br>

  Ended June 30,</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="21%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:21.94%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Six Months<br>

  Ended June 30,</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2001</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2002</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2001</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:1.46%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2002</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="24%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:24.68%;">

  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">(Unaudited)</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="21%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:21.94%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">(Unaudited)</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="10%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54,833</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="10%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38,403</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="9%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">114,434</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.16%;">

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

  </td>

  <td width="8%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:8.78%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">79,162</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39,576</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27,830</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">82,326</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">57,166</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15,257</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,573</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32,108</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21,996</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

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

  expenses</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Selling, general

  and administrative expenses</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,376</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,452</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29,056</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21,362</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depreciation and

  amortization</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,370</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,058</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,838</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,204</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other charges</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,100</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,100</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total operating

  expenses</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15,746</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12,610</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31,894</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24,666</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Income (loss)

  from operations</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(489</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,037</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">214</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,670</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

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

  (expense), net</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,132</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(928</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,874</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,739</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

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

  income taxes</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,621</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,965</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,660</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4,409</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(615</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,275</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(583</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,225</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:10.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,006</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:10.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,690</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:9.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,077</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.16%;">

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

  </td>

  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:8.78%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,184</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net loss per

  share:</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Basic and

  diluted</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="10%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:10.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(0.06</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="10%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:10.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(0.10</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.0%;">

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

  </td>

  <td width="9%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:9.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(0.06</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.16%;">

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

  </td>

  <td width="8%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:8.78%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(0.13</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares used to

  compute net loss per share:</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Basic and

  diluted</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16,805</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.32%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:11.68%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17,117</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:10.54%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16,805</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.46%;">

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

  </td>

  <td width="9%" colspan="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:9.94%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17,072</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.72%;">

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

  </td>

 </tr>

</table>



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



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

Consolidated Financial Statements</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



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

RESOURCES CORPORATION</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="ConsolidatedStatementsOfComprehensive"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONSOLIDATED STATEMENTS OF<br>

COMPREHENSIVE INCOME (LOSS)</font></b></a></p>



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



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



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.04%;">

 <tr>

  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.9%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="22%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:22.94%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Three

  Months<br>

  Ended June 30,</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:23.0%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Six Months<br>

  Ended June 30,</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.9%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.8%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2001</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:1.28%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2002</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2001</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:1.28%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2002</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.9%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="22%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:22.94%;">

  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">(Unaudited)</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="23%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:23.0%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">(Unaudited)</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.9%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

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

  </td>

  <td width="22%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:22.94%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="23%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:23.0%;">

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

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.9%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.66%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,006</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,690</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,077</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:9.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,184</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.9%;">

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

  comprehensive income (loss):</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.8%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.9%;">

  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Foreign currency

  translation adjustment, net of&#160; tax</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.8%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(18</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.86%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(11</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.9%;">

  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unrealized

  holding gain on security, net of tax:</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.8%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.9%;">

  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Less

  reclassification adjustment for gain included in net loss</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.8%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(221</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.9%;">

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

  comprehensive loss</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.8%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(18</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(218</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(11</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.9%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.8%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="10%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.86%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.9%;">

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

  loss</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.66%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,012</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,708</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,295</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.14%;">

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

  </td>

  <td width="9%" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:9.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,195</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.6%;">

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

  </td>

 </tr>

</table>



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



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

Consolidated Financial Statements</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="ConsolidatedStatementsOfCashFlows"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONSOLIDATED STATEMENTS OF CASH FLOWS</font></b></a></p>



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



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



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="74%" valign="bottom" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="24%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:24.04%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Six Months

  Ended<br>

  June 30,</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="bottom" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2001</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:1.24%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2002</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="bottom" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="24%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:24.04%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">(Unaudited)</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Cash flows from operating

  activities:</font></b></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net loss</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.92%;">

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

  </td>

  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,077</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.92%;">

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

  </td>

  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.52%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,184</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adjustments to

  reconcile net loss to net cash provided by (used in) operating activities:</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depreciation and

  amortization</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,838</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,204</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred income

  taxes</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(149</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provision for

  doubtful accounts</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">82</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(192</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Realized net

  gain on sale of security</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(221</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred

  compensation on restricted shares</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">149</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">97</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Change in assets

  and liabilities:</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Trade accounts

  receivable</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11,601</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,489</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prepaid expenses</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(179</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other

  receivables</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(96</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(86</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other assets</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">114</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,148</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounts payable</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,322</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(521</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payroll and

  related expenses</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,759</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(787</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accrued expenses

  and other liabilities</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,070</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,173</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Income taxes</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,180</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(606</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

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

  provided by (used in) operating activities</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,091</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,450</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Cash flows from investing

  activities:</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Purchases of

  property and equipment</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,187</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(183</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Redemption of

  available-for-sale securities</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">639</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

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

  provided by (used in) investing activities</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(548</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(183</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Cash flows from financing

  activities:</font></b></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proceeds from

  long-term debt</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">168,704</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">118,150</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payments on

  long-term debt</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(175,546</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(126,501</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proceeds from

  issuance of debt and warrants</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,000</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash paid to

  shareholders for cancellation of redemption plan</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(171</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-cash

  interest expense of deferred financing costs</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">206</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-cash

  interest expense on accretion of warrants</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">173</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contributions to

  employee stock purchase plan</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(39</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proceeds from

  issuance of shares to the employee stock purchase plan</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash overdraft</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,730</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3,239</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

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

  provided by (used in) financing activities</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(9,611</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,327</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

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

  exchange rate changes on cash and cash equivalents</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(14</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

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

  (decrease) in cash and cash equivalents</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(65</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(74</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash and cash

  equivalents at beginning of period</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">114</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">127</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash and cash

  equivalents at end of period</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:.92%;">

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

  </td>

  <td width="10%" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">49</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="0%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:.92%;">

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

  </td>

  <td width="10%" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:10.52%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

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

  disclosures of cash flow information:</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash paid for

  interest</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.92%;">

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

  </td>

  <td width="10%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,604</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.92%;">

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

  </td>

  <td width="10%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.52%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">784</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash paid for

  income taxes</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">133</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.04%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash refunds

  received for income taxes</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.26%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.36%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,895</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.24%;">

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

  </td>

  <td width="11%" colspan="2" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:11.44%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,621</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.66%;">

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

  </td>

 </tr>

</table>



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



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

Consolidated Financial Statements</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="NotesToConsolidatedFinancialStatemen"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></b></a></p>



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



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Basis

of Presentation</b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The interim consolidated financial statements

presented are unaudited, but in the opinion of management, have been prepared

in conformity with accounting principles generally accepted in the United

States of America applied on a basis consistent with those of the annual

financial statements.&#160; Such interim

consolidated financial statements reflect all adjustments (consisting

principally of normal recurring accruals) necessary for a fair presentation of

the financial position and the results of operations for the interim periods

presented.&#160; The results of operations

for the interim periods presented are not necessarily indicative of the results

to be expected for the year ending December 31, 2002.&#160; The interim consolidated financial statements should be read in

connection with the audited consolidated financial statements for the year

ended December 31, 2001, included in the 2001 Form 10-K of Alternative

Resources Corporation (&#147;ARC&#148; or the &#147;Company&#148;).</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Computation

of Earnings (Loss) per Share</b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Basic earnings (loss) per share is based on the

weighted average number of common shares outstanding for the period.&#160; Diluted earnings (loss) per share is based

on the weighted average number of common shares outstanding and includes the

dilutive effect of unexercised stock options and warrants which are

in-the-money using the treasury stock method.&#160;&#160;

Dilutive securities have not been included in the weighted average

shares used for the calculation of earnings per share in periods of net loss

because the effect of such securities would be anti-dilutive. At June 30, 2002

and 2001, potentially dilutive securities consisted of options to purchase 2.5

million and 2.6 million shares of common stock, respectively.&#160; In addition, the Company issued 11,000,000

warrants in connection with its refinancing described in note 4.&#160; These warrants are also potentially dilutive

securities.</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Recently

Adopted Accounting Pronouncements</b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">In June </font>1999, the FASB issued SFAS No. 133, &#147;Accounting for

Derivative Instruments and Certain Hedging Activities.&#148;&#160; In June 2000, the FASB issued SFAS No. 138,

&#147;Accounting for Certain Derivative Instruments and Certain Hedging Activity, an

Amendment of SFAS No. 133.&#148;&#160; SFAS No.

133 and SFAS No. 138 require that all derivative instruments be recorded on the

balance sheet at their respective fair values as either liability or equity

instruments, depending on certain criteria.&#160;

The Company adopted SFAS No. 133 and SFAS No. 138 on January 1, 2001,

which did not have an impact on its financial position or results of operations

given the Company did not have any derivative financial instruments at that

time.&#160; As described in note 4, the

Company issued warrants in conjunction with the issuance of Senior Subordinated

Convertible Notes on January 31, 2002.&#160;

Pursuant to SFAS 133 and interpretations by the Emerging Issues Task

Force covering derivative financial instruments, these warrants meet the

criteria for equity classification on the measurement date of January 31, 2002

and the Company is not required to remeasure the warrants on subsequent

dates.&#160; As such, the fair value of the

warrants of approximately $3.0 million was recorded in equity as additional

paid-in capital.&#160; There was no effect on

results of operations for the six months ended June 30, 2002 as a result of

these pronouncements.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In June 2001, the Financial Accounting Standards Board

(&#147;FASB&#148;) issued Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 142,

&#147;Goodwill and Other Intangible Assets&#148; (&#147;SFAS 142&#148;), which supersedes

Accounting Principles Board (&#147;APB&#148;) Opinion No. 17, &#147;Intangible Assets.&#148;&#160; SFAS 142 addresses how intangible assets

that are acquired individually or with a group of other assets should be

accounted for in financial statements upon their acquisition. SFAS 142 also

addresses how goodwill and other intangible assets should be accounted for

after they have been initially recognized in the financial statements. The

provisions of SFAS 142 are required to be applied starting with fiscal years

beginning after December 15, 2001.&#160; SFAS

142 is required to be applied at the beginning of an entity&#146;s fiscal year to

all goodwill and other intangible assets recognized in its financial statements

at that date. As of January 1, 2002, the date of adoption, the Company has

unamortized goodwill in the amount of approximately $2.7 million, which has

been subjected to the transition provisions, including the phase-in impairment

test, of SFAS 142 and will not be amortized going forward.&#160; In the six months ended June 30,2001, amortization

expense was approximately $38,000.&#160; Had

this</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='7',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">amortization not been recorded, the reported net loss of $1,077 would

have been $1,039 with no effect on the reported loss per share of $0.06 for the

six months ended June 30, 2001.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In July 2001, the FASB issued SFAS No. 141, &#147;Business

Combinations&#148; (&#147;SFAS 141&#148;), which supersedes APB Opinion No. 16, &#147;Business

Combinations,&#148; and SFAS No. 38, &#147;Accounting for Preacquisition Contingencies of

Purchased Enterprises.&#148;&#160; SFAS 141

addresses financial accounting and reporting for business combinations and

requires that all business combinations within the scope of SFAS 141 be

accounted for using only the purchase method. SFAS 141 is required to be

adopted for all business combinations initiated after June 30, 2001. As the

Company has not had any business combinations subsequent to June 30, 2001,

there is no impact to date of the adoption of SFAS 141 on the Company&#146;s

consolidated financial statements.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In October 2001, the FASB issued SFAS No. 144, &#147;Accounting

for the Impairment or Disposal of Long-Lived Assets&#148; (&#147;SFAS 144&#148;).&#160; SFAS 144 addresses financial accounting and

reporting for the impairment or disposal of long-lived assets.&#160; While SFAS No. 144 supercedes SFAS No. 121,

&#147;Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets

to Be Disposed Of,&#148; it retains many of the fundamental provisions of that

Statement.&#160; SFAS 144 also supersedes the

accounting and reporting provisions of APB Opinion No. 30, &#147;Reporting the

Results of Operations-Reporting the Effects of Disposal of a Segment of a

Business, and Extraordinary, Unusual and Infrequently Occuring Events and

Transactions,&#148; for the disposal of a segment of a business.&#160; However, it retains the requirement in

Opinion 30 to report separately discontinued operations and extends that

reporting to a component of an entity that either has been disposed of (by

sale, abandonment, or in a distribution to owners) or is classified as held for

sale.&#160; SFAS 144 is effective for the

fiscal years beginning after December 15, 2001 and interim periods within those

fiscal years.&#160; SFAS 144 was adopted on

January 1, 2002 and had no effect on the consolidated financial statements.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In December 2001, the FASB issued Topic No. D-103,

&#147;Income Statement Characterization of Reimbursements Received for

&#147;Out-of-Pocket&#148; Expenses Incurred&#148; (&#147;Topic D-103&#148;), subsequently

recharacterized as Emerging Issues Task Force &#147;EITF&#148; No. 01-14, which is

effective for fiscal years beginning after December 15, 2001.&#160; EITF No. 01-14 requires that certain

out-of-pocket expenses rebilled to customers be recorded as revenue versus an

offset to the related expense.&#160;

Comparative financial statements for prior periods must be conformed to

this presentation.&#160; The Company

historically recorded rebilled out-of-pocket expenses as an offset to the

related expense. Effective January 1, 2002, the Company changed its

presentation to reflect rebilled expenses as revenue and also conformed the

presentation for prior periods. The impact of adopting this pronouncement

resulted in the reclassification of $1.9 million and $1.6 million of expenses

to revenue, with a corresponding decrease of approximately 1.0% and 1.2% in

gross margin for the three months ended June 30, 2001 and 2002, respectively.&#160; The impact of adopting this pronouncement

resulted in the reclassification of $3.8 million and $2.9 million of expenses

to revenue, with a corresponding decrease of approximately 0.9% and 1.1%, in

gross margin for the six months ended June 30, 2001 and 2002, respectively.&#160; Cost of services were increased by an equal

amount with no impact on gross profit dollars.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.3in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Recent Accounting Pronouncements, Not Yet Adopted</font></b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In July 2002, the FASB issued SFAS No. 146,

&#147;Accounting for Costs Associated with an Exit or Disposal Activity,&#148; which

supercedes EITF No. 94-3 &#147;Liability Recognition for Certain Employee

Termination Benefits and Other Costs to Exit an Activity (Including Certain

Costs Incurred in a Restructuring),&#148; which is effective for exit or disposal

activities initiated after December 31, 2002.&#160;

SFAS No. 146 requires that a company record a liability when that

liability is incurred and can be measured at fair value.&#160; Incurred is defined as when an event

obligates the entity to transfer or use assets.&#160; The recognition of termination benefits to employees will depend

on whether additional service is required of the employee.&#160; If the employee must continue to provide

service for a period of at least a minimum of sixty days in order to be

eligible for the benefits (called a &#147;minimum retention period&#148;), the fair value

of the benefits should be accrued over the time the employee renders the

service.&#160; If future service beyond a

minimum retention period is not required, the liability for the fair value of

the benefits should be recognized at the time the company communicates the

arrangement to the employees.&#160; The

Company will adopt this statement in the year beginning January 1, 2003.</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='8',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Long-term

borrowings</b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During 1997, the Company entered into a $53.5 million

revolving credit facility. As of December 31, 2001, borrowings under the

revolving credit facility were $26.9 million. As part of this agreement, cash

receipts into the Company&#146;s bank accounts are directly applied against the

outstanding bank line of credit balance.&#160;

Advances from the line of credit are determined on a daily basis to

minimize the Company&#146;s average debt balance.&#160;

The revolving credit facility expired on January 31, 2002.&#160; The Company did not extend this credit

facility and successfully refinanced the debt on a long-term basis as described

below.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January 31, 2002, the Company entered into a Senior

Secured Revolving Credit facility with a lending institution, that provides for

up to $30 million of revolving credit based on the Company&#146;s available

collateral base.&#160; The credit facility

has a three-year term and bears interest at LIBOR plus 3.25% or the lenders&#146;

base rate plus 1.00%.&#160; As of June 30,

2002, the applicable rates are as follows: $15,000,000 at 5.15%, which

represents LIBOR plus 3.25%, with the remainder of the facility at 5.75%, which

represents the bank&#146;s base rate plus 100 basis points.&#160; The initial proceeds of this facility

together with the net proceeds from the sale of convertible subordinated notes

described below were used to repay the Company&#146;s existing credit facility.&#160; Advances from the revolving credit facility

are determined on a daily basis to minimize the Company's average debt balance.

As of June 30, 2002 the Company has $2.3 million in excess availability.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January 31, 2002, the Company also entered into a

Securities Purchase Agreement with a private equity investor, pursuant to which

the Company sold $10 million principal amount of 15% Senior Subordinated

Convertible Notes due January 31, 2009.&#160;

These notes are convertible into common stock of the Company at a

conversion price of $2.50 per share.&#160; At

the Company&#146;s election, one half of the interest may be deferred during the

first four years, subject to certain conditions.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In conjunction with the sale of these notes, the

Company issued 10,000,000 warrants (immediately exercisable) to the private

equity investor to purchase shares of the Company&#146;s common stock at $0.55 per

share and an additional 1,000,000 warrants to purchase its common stock at

$0.73 per share, the latter of which are not exercisable for one year contigent

upon the Company meeting certain performance measures, however, the warrants

expire if such performance measures are met. A fair value was required to be ascribed

to these warrants and recorded as a decrease in the debt and an increase to

additional-paid-in-capital.&#160; This value

is then amortized over the seven-year life of the debt by a non-cash interest

charge.&#160; The fair value of these

warrants was determined to be approximately $3.0 million and will result in a

non-cash quarterly interest charge of approximately $100 thousand ($70 thousand

for the three months ended March 31, 2002).&#160;

The valuation of the warrants was determined based on advice from

third-party valuation specialists who utilized a valuation model with the

following inputs: measurement date of Janaury 31, 2002; fair value of $0.80;

exercise price of $0.55 ($0.73 for contingent warrants); contractual term of 10

years; dividend rate of zero; volatility rate of 101%; risk-free rate of 5.49%;

and probability of 70% (for contingent warrants only).&#160; The value assigned to the warrants is

subject to the finalization of the valuation advice and review by management.&#160; Any changes, unless material, will be adjusted

in the financial statements prospectively.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In conjunction with the Securities Purchase Agreement

on January 31, 2002, the Company&#146;s Board of Directors redeemed all of the

rights issued under its stockholders rights plan.&#160; Each share of the Company&#146;s common stock carried with it one

right to purchase a fraction of a share of the Company&#146;s preferred stock in

certain circumstances described in the Stockholder Rights Plan.&#160; The rights were attached to, and could not

be separated from, shares of the Company&#146;s common stock.&#160; The Company paid a redemption payment of

$0.01 per right to stockholders on February 8, 2002, at a total cost of

approximately $171,000.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In August 2002, ARC and the lending institute executed

an amendment to the revolving credit agreement.&#160; ARC and the private equity investor executed a similar amendment

to the security purchase agreement.&#160; The

impact of these amendments was to reduce the borrowing limit subject to pledged

accounts receivable as collateral in consideration for waiver of existing

financial loan covenants and modification of certain loan covenants.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has two irrevocable standby letters of

credit for $1,268,000, which expire on December 31, 2002.</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Other

Charges</b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the second quarter of 2002 the Company recorded

a charge of $1.1 million which represents the severance pay associated with the

departure of the Company's former Chief Executive Officer.</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='9',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><a name="Item2_ManagementsDiscussionAndAn"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2. - Management&#146;s Discussion and

Analysis of Financial Condition and Results of Operations</font></b></a></p>



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



<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Results of Operations</font></u></b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Essentially all of the Company&#146;s revenue is generated

from information technology services that offer the benefits of outsourcing,

while allowing information services operations managers to retain strategic

control of their operations. Revenues are recognized as services are performed,

utilizing four different billing methodologies as follows:&#160; (1) time and material billing, whereby the

client is billed by the hour on a weekly basis for past services performed; (2)

project-based billing, for which fees are fixed and are based on specific

contracts; (3) per-incident billing, whereby the Company charges a fee for each

specific task related to certain services; (4) and fee-based billing, which is used

for candidate placement/recruiting fees and vendor management fees.&#160;&#160; The Company typically provides discounts on

staffing services to its largest clients in exchange for the opportunity to

sell more volume, as well as the opportunity to sell its higher-margin,

value-added services.&#160; All revenues are

recognized net of such discounts and after services have been completed.</font></p>



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



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Second Quarter Fiscal 2002 Compared

to Second Quarter Fiscal 2001</font></b></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Revenue.</font></b>&#160;

Revenues consist of fees earned from the Company&#146;s IT Staffing business

and its&#146; IT Solutions business. Revenue for the second quarter of 2002 was

$38.4 million, which was down from $54.8 million in the second quarter of 2001.

The IT Staffing revenue was $20.4 million, down from $38.4 million last year

and the IT Solutions revenue was $18.0 million, up from $16.4 million last

year.&#160; The Solutions revenue includes a

reclassification of $1.3 million in the second quarter of 2002 and a similar

reclassification of $1.6 million in the second quarter of 2001. This reclassification

represents out-of-pocket expenses that were rebilled to customers and

previously recorded as an offset to the related expense and now included in

revenue as required by the recent EITF No. 01-14, &#147;Income Statement

Characterization of Reimbursements for &#147;Out-of-Pocket&#148; Expenses

Incurred.&quot;&#160; Cost of services were

increased by an equal amount with no impact on the dollar value of gross

profit.&#160; The IT Staffing revenues

dropped by about 47% from the prior year. This decrease was driven by significant

declines in outsourced staffing requirements from IBM and EDS, two of our

largest staff augmentation customers. IT Staffing revenue was also reclassified

for EITF No. 01-14 by $0.2 million in the second quarter of 2002 and by a $0.3

million in the second quarter of 2001.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Gross margin.</font></b> Gross margin for the quarter

was 27.5%, down slightly from 27.8% in the second quarter of last year.&#160; The decrease in margin from the second

quarter of 2002 is due to the very competitive staffing environment, which is causing

some margin pressure in our staffing business. This is partially offset by the

margins in IT Solutions business, which have shown some improvement over the

second quarter of last year.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Operating expenses.</font></b>&#160; Operating expenses consist of sales and marketing

costs, recruiting, retention and training costs, management and administrative

costs, and depreciation and amortization.&#160;

Operating expenses decreased by $4.2 million or 26.9% from $15.7 million

in 2001 to $11.5 million in 2002.&#160; The

operating expense decrease was attributable to the restructuring actions the

Company has taken in the past, which is reflected in reduced office space and

lower headcount.&#160; As a percentage of

revenues, operating expenses increased by 1.3% from 28.7% in 2001 to 30.0% in 2002,

primarily as a result of the sharp decline in revenue.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other charges.</font></b>&#160; During the second quarter of 2002 the Company recorded a charge

of $1.1 million which represents the severance pay associated with the

departure of the Company&#146;s former Chief Executive Officer.&#160; There was no similar charge in the prior

year.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other (income) expense, net.&#160;

</font></b>Other (income) expense consists primarily of interest

expense on the Company&#146;s outstanding debt. Other (income) expense, net

decreased by $0.2 million in the second quarter of 2002 from $1.1 million in

2001 to $0.9 million in 2002.&#160; The

decrease in other expense is primarily the result of a decrease in interest

expense related to decreased debt levels and lower interest rates.</p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='10',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">First Six Months Fiscal 2002 Compared

to First Six Months Fiscal 2001</font></b></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Revenue.</font></b>&#160; Revenues consist of fees earned

from the Company&#146;s IT Staffing business and its&#146; IT Solutions business. Revenue

decreased by $35.2 million from $114.4 million in 2001 to $79.2 in 2002. The IT

Staffing revenue was $43.1 million, down from $80.5 million last year and the

IT Solutions revenue was $36.1 million, up from $33.9 million last year.&#160; The Solutions revenue includes a

reclassification of $2.5 million in the six months of 2002 and a similar

reclassification of $3.3 million in the six months of 2001. This

reclassification represents out-of-pocket expenses that were rebilled to

customers and previously recorded as an offset to the related expense and now

included in revenue as required by the recent EITF No. 01-14, &#147;Income Statement

Characterization of Reimbursements for &#147;Out-of-Pocket&#148; Expenses Incurred.&#148; Cost

of services were increased by an equal amount with no impact on the dollar

value of gross profit.&#160; The IT Staffing

revenues dropped by about 46% from the prior year. This decrease was driven by

significant declines in outsourced staffing requirements from IBM and EDS, two

of our largest staff augmentation customers. IT Staffing revenue was also

reclassified for EITF No. 01-14 by $0.4 million in the six months of 2002 and

by a $0.5 million in the six months of 2001.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Gross margin.</font></b>&#160; Gross margin decreased by $10.1 million or 31.5% from $32.1

million in 2001 to $22.0 million in 2002. The decrease in margin in 2002 is due

to the very competitive staffing environment, which is causing some margin

pressure in our staffing business. This is partially offset by the margins in

IT Solutions business, which have shown some improvement over the six months of

last year.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Operating expenses.</font></b>&#160; Operating expenses consist of sales and

marketing costs, recruiting, retention and training costs, management and

administrative costs, and depreciation and amortization.&#160; Operating expenses decreased by $8.3 million

or 26.1% from $31.9 million in 2001 to $23.6 million in 2002.&#160; The operating expense decrease was

attributable to the restructuring actions taken in 2000, which is reflected in

reduced office space and lower headcount.&#160;

As a percentage of revenues, operating expenses increased by 1.9% from

27.9% in 2001 to 29.8% in 2002, primarily as a result of the sharp decline in

revenue.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other charges.</font></b>&#160; During the second quarter of 2002 the Company recorded a charge

of $1.1 million which represents the severance pay associated with the

departure of the Company&#146;s former Chief Executive Officer.&#160; There was no similar charge in the prior

year.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other (income) expense, net.&#160;

</font></b>In 2002, Other (income) expense consists primarily of

interest expense on the Company&#146;s outstanding debt. In 2001, Other (income)

expense, net consisted of interest expense of $2.6 million on the Company&#146;s

revolving credit facility offset by interest income on the Company&#146;s tax refund

and a $0.4 million pre-tax gain on the sale of stock that was distributed to

ARC from its health care provider, MetLife, as it transitioned from a mutual

company to a public company.</p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='11',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Liquidity and Capital Resources</font></b></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January 31, 2002, the Company replaced its existing

bank line with a $30.0 million senior secured revolving credit facility with

Fleet Capital, a subsidiary of the FleetBoston Financial Corporation and $10.0

million principal amount of Senior Subordinated Convertible Notes sold to

Wynnchurch Capital Partners, a private equity investor. The $30.0 million

revolving credit facility is secured by the assets of the Company, principally

consisting of accounts receivable. The agreement has a three-year term and

bears interest at LIBOR plus 325 basis points or the bank&#146;s base rate plus 100

basis points.&#160; As of June 30, 2002, the

applicable rates are as follows: $15,000,000 at 5.15%, which represents LIBOR

plus 3.25%, with the remainder of the facility at 5.75%, which represents the

bank&#146;s base rate plus 100 basis points.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Senior Subordinated Convertible Notes bear

interest at 15% and are due January 31, 2009. These notes are convertible into

common stock at a conversion price of $2.50 per share. At the Company&#146;s

election, one-half of the interest may be deferred during the first four years,

subject to certain conditions.&#160; In

conjunction with the sale of these notes, the Company issued 10,000,000

warrants to purchase shares of the Company&#146;s common stock at $0.55 per share

and an additional 1,000,000 warrants to purchase its common stock at $0.73 per

share, the latter of which are not exercisable for one year and expire on the

occurrence of certain events.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Current assets exceed current liabilities by $13.6

million at June 30, 2002.&#160; Net cash

provided by operations was $1.5 million in the first six months of 2002.&#160; The Company utilized the net cash provided

by operations to reduce its overall debt by $2.6 million during the second

quarter of 2002.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capital spending was approximately $0.2 million in

2002 and $1.2 million in 2001. The Company does not anticipate that its capital

spending going forward will be significantly greater than $2.0 million to $3.0

million per annum.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company reported a tax benefit of $1.3 million in

the second quarter of 2002 and $950 thousand in the first quarter of 2002 due

to recently enacted Federal tax legislation.&#160;

The new legislation provides for a five-year carry back of the Company&#146;s

2001 operating loss rather than the two years permitted under the prior legislation.&#160; The Company intends to use the cash

generated from the anticipated income tax refund for general operating

purposes, including the reduction of debt.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, pursuant to the January 31, 2002

Securities Purchase Agreement with a private equity investor, the Company was

required to determine if it was subject to Section 382 limitations for federal

income tax purposes.&#160; A company that has

a Section 382 ownership change faces an annual limitation on its ability to use

net operating loss carryovers and certain other tax attributes arising on or

before the ownership change to offset taxable income arising after the

ownership change date.&#160; Based on the

results of the analysis performed by a third party, the Company did not

experience an ownership change as defined in Section 382, and was allowed to

record a $1.3 million tax benefit for the six months ended June 30, 2002.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company believes its cash balances and funds from

operations together with funds available under its new credit facility will be

sufficient to meet all of its anticipated cash requirements for at least the

next 12 months.&#160; However, general

economic and industry conditions could impact the Company's ability to meet

anticipated cash requirements.&#160; Since

the existing credit facility is secured by the assets of the Company, principally

consisting of accounts receivable, these uncertainties may directly impact the

availability of this credit facility.</font></p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='12',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><a name="Item3_QuantitativeAndQualitativeDi"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 3. - Quantitative and

Qualitative Disclosures About Market Risk</font></b></a></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The market risk that the Company is exposed to

primarily relates to changes in interest rates on its borrowings. At June 30,

2002, the Company had $18.2 million in floating-rate debt. An adverse change in

interest rates during any period that the loan is outstanding would cause an

increase in interest expense. A 100 basis point increase in the bank&#146;s base

rate would increase the annual amount of interest paid by $0.2 million.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company issued warrants on January 31, 2002 which

are classified as derivative financial instruments pursuant to SFAS 133, which

was adopted by the Company on January 1, 2001.&#160;

Pursuant to SFAS 133 and interpretations by the Emerging Issues Task

Force covering derivative financial instruments, these warrants meet the

criteria for equity classification on the measurement date of January 31, 2002

and the Company is not required to remeasure the warrants on subsequent

dates.&#160; As such, there is no

mark-to-market adjustment which will be reflected in the statement of

operations as unrealized gains or losses as a result of changes in fair value

of these warrants in periods subsequent to the measurement date.&#160; Additionally, there is no equity price risk

associated with changes in fair value of the warrants.&#160; The Company does not have any derivative

financial instruments other than the warrants.</font></p>



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



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORWARD-LOOKING

STATEMENTS</font></b></p>



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



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company makes forward-looking statements from time to time and

desires to take advantage of the &#147;safe harbor,&#148; which is afforded such

statements under the Private Securities Litigation Reform Act of 1995, when

they are accompanied by meaningful cautionary statements identifying important

factors that could cause actual results to differ materially from those in the

forward-looking statements. The statements contained in this Form 10-Q,

including those under &#147;Management&#146;s Discussion and Analysis of Financial

Condition and Results of Operations,&#148; statements contained in future filings

with the Securities and Exchange Commission and publicly disseminated press

releases, and statements which may be made from time-to-time in the future by

management of the Company in presentations to shareholders, prospective

investors, and others interested in the business and financial affairs of the

Company, which are not historical facts, are forward-looking statements that

involve risks and uncertainties that could cause actual results to differ

materially from those set forth in the forward-looking statements. Any

projections of financial performance or statements concerning expectations as to

future developments should not be construed in any manner as a guarantee that

such results or developments will, in fact, occur. There can be no assurance

any forward-looking statement will be realized or that actual results will not

be significantly different from that set forth in such forward-looking

statement.</font></p>



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



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to the risks and uncertainties of ordinary business

operations, the forward-looking statements of the Company referred to above are

also subject to the following risks and uncertainties:</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company&#146;s ability to attract and retain qualified information technology

professionals;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&#149;</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company&#146;s ability to recruit, train, integrate and retain qualified sales

directors, account managers, recruiters and client staffing managers;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&#149;</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Competition

in the information technology services marketplace;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&#149;</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company&#146;s continued ability to initiate and develop client relationships;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&#149;</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company&#146;s ability to identify and respond to trends in information technology;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&#149;</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unforeseen

business trends in the Company&#146;s national accounts or other large clients;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&#149;</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Pricing

pressures and/or wage inflation and the resulting impact on gross profit and

net operating margins;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The ability

to successfully enter new geographic markets; and</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .3in;text-indent:-.3in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The effect

of changes in general economic conditions.</p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='13',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;"><a name="PartIiOtherInformation"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PART II - OTHER INFORMATION</font></b></a></p>



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



<p style="margin:0in 0in .0001pt;"><a name="Item4_SubmissionOfMattersToAVot"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 4. - Submission of Matters to a

Vote of Security Holders</font></b></a></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The annual meeting of

stockholders of Alternative Resources Corporation was held on June 13, 2002</p>



<p style="margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The individuals specified

in (c) below were elected as directors at the meeting and the terms of office

of JoAnne Brandes and Charles W. Sweet as directors continued after the

meeting.</p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Set forth below is the

tabulation of the votes with respect to the election of Frank Hayes and Richard

J. Renaud as Class I Directors; Syd N. Heaton, Steven Purcell, and John A.

Hatherly as Class II Directors; and Michael J. Hering as a Class III Director.</p>



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



<table border="0" cellspacing="0" cellpadding="0" width="72%" style="border-collapse:collapse;margin-left:.5in;width:72.0%;">

 <tr>

  <td width="60%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:60.34%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Director</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:13.82%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">For</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:21.82%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Withhold Authority</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.44%;">

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

  </td>

  <td width="13%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:13.82%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.3%;">

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

  </td>

  <td width="21%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

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

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,106,375</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.3%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">312,014</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,105,675</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.3%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">312,714</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,130,447</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.3%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">287,942</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,040,688</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.3%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">377,701</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13,902,735</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.3%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">515,654</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.28%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.34%;">

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

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,190,585</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.3%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.82%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">227,804</font></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.28%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

</table>



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



<p style="margin:0in 0in .0001pt;"><a name="Item6_ExhibitsAndReportsOnForm8"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 6. - Exhibits and Reports on

Form 8-K</font></b></a></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The following documents

are furnished as an exhibit and numbered pursuant to Item 601 of Regulation

S-K:</p>



<p style="margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="85%" style="border-collapse:collapse;margin-left:.7in;width:85.0%;">

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

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

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">First Amendment to Credit Agreement and Waiver</font></p>

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

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

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">First Amendment to Securities Purchase Agreement and

  Waiver</font></p>

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

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

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Employment Agreement between

  Alternative&#160; Resources Corporation and

  George W. Watts dated July 1, 2002.</font></p>

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

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

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Separation Agreement between Alternative&#160; Resources Corporation and Raymond R. Hipp

  dated June 13, 2002.</font></p>

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

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

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director Agreement between Alternative Resources

  Corporation and Robert Stanojev dated August 5, 2002.</font></p>

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

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

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

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

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

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

  </td>

 </tr>

 <tr>

  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.7%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="77%" valign="top" style="padding:0in 0in 0in 0in;width:77.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certification Pursuant to 18 U.S.C. Section 1350, as

  Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></p>

  </td>

 </tr>

</table>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No Current Reports on

Form 8-K were filed during the three-month period ended June 30, 2002. A

Current Report on Form 8-K was filed on July 2, 2002, reporting under Item 5.

&#147;Other Events&#148;, the departure of Ray R. Hipp as Chairman and Chief Executive

Officer and the appointment of George W. Watts as President and Chief Executive

Officer.</p>



<p style="margin:0in 0in .0001pt .65in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='14',FILE='C:\C2\tstreeter\4412_7\t_782968\j4412_10q.htm',USER='tstreet',CD='Aug 14 13:16 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Signatures"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></a></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant has duly caused this report to be signed

on its behalf by the undersigned thereunto duly authorized.</font></p>



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



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.9%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:38.1%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.9%;">

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

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:38.1%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.9%;">

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

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:38.1%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:&#160; August

  14, 2002</font></p>

  </td>

  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:25.8%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Steven

  Purcell</font></p>

  </td>

  <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.9%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:38.1%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.9%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:38.1%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President, Chief Financial Officer,<br>

  Treasurer and Secretary</font></p>

  </td>

 </tr>

</table>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>3
<FILENAME>j4412_ex3d1.htm
<DESCRIPTION>EX-3.1
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body link="blue" vlink="purple">



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



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit

3.1</font></b></p>



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



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

BY-LAWS</font></p>



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



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



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



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



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A DELAWARE CORPORATION)</font></p>



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



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



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

November 21, 1996</font></i></p>



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



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.6

amended on June 12, 2002</font></p>



<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="background:white;margin:0in 0in .0001pt 5.5pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TABLE OF CONTENTS</font></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 5.5pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article1CertificateOfIncorporation" title="Click to goto ARTICLE 1  CERTIFICATE OF INCORPORATION">ARTICLE 1 -

  CERTIFICATE OF INCORPORATION</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section1_1Contents_" title="Click to goto Section 1.1  Contents.">Section 1.1.&#160; Contents </a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section1_2_CertificateInEffect_" title="Click to goto Section 1.2.  Certificate in Effect.">Section 1.2.&#160; Certificate in Effect</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article2MeetingsOfStockholders" title="Click to goto ARTICLE 2  MEETINGS OF STOCKHOLDERS">ARTICLE 2 -

  MEETINGS OF STOCKHOLDERS</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_1_Place_" title="Click to goto Section 2.1.  Place.">Section 2.1.&#160; Place</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_2_AnnualMeeting_" title="Click to goto Section 2.2.  Annual Meeting.">Section 2.2.&#160; Annual Meeting</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_3_SpecialMeetings_" title="Click to goto Section 2.3.  Special Meetings.">Section 2.3.&#160; Special Meetings</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_4_NoticeOfMeetings_" title="Click to goto Section 2.4.  Notice of Meetings.">Section 2.4.&#160; Notice of Meetings</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_5_AffidavitOfNotice_" title="Click to goto Section 2.5.  Affidavit of Notice.">Section 2.5.&#160; Affidavit of Notice</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_6_Quorum_" title="Click to goto Section 2.6.  Quorum.">Section 2.6.&#160; Quorum</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_7_VotingRequirements_" title="Click to goto Section 2.7.  Voting Requirements.">Section 2.7.&#160; Voting Requirements</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_8_ProxiesAndVoting_" title="Click to goto Section 2.8.  Proxies and Voting.">Section 2.8.&#160; Proxies and Voting</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_9_DirectorNominations_" title="Click to goto Section 2.9.  Director Nominations.">Section 2.9.&#160; Director Nominations</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_10_NewBusiness_" title="Click to goto Section 2.10.  New Business.">Section 2.10.&#160; New Business</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_11_ActionWithoutMeeting_" title="Click to goto Section 2.11.  Action Without Meeting.">Section

  2.11.&#160; Action Without Meeting</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_12_StockholderList" title="Click to goto Section 2.12.  Stockholder List">Section 2.12.&#160; Stockholder List</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_13_RecordDate_" title="Click to goto Section 2.13.  Record Date.">Section 2.13.&#160; Record Date</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article3Directors" title="Click to goto ARTICLE 3  DIRECTORS">ARTICLE 3 - DIRECTORS</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_1_Duties_" title="Click to goto Section 3.1.  Duties.">Section 3.1.&#160; Duties</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_2_NumberElectionAndTerm" title="Click to goto Section 3.2.  Number; Election and Term of Office.">Section

  3.2.&#160; Number; Election and Term of

  Office</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_3_Compensation_" title="Click to goto Section 3.3.  Compensation.">Section 3.3.&#160; Compensation</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_4_RelianceOnBooks_" title="Click to goto Section 3.4.  Reliance on Books.">Section 3.4.&#160; Reliance on Books</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article4MeetingsOfTheBoardOfDir" title="Click to goto ARTICLE 4   MEETINGS OF THE BOARD OF DIRECTORS">ARTICLE

  4 - MEETINGS OF THE BOARD OF DIRECTORS</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_1_Place_" title="Click to goto Section 4.1.  Place.">Section

  4.1.&#160; Place</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_2_AnnualMeeting_" title="Click to goto Section 4.2.  Annual Meeting.">Section 4.2.&#160; Annual Meeting</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_3_RegularMeetings_" title="Click to goto Section 4.3.  Regular Meetings.">Section 4.3.&#160; Regular Meetings</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_4_SpecialMeetings_" title="Click to goto Section 4.4.  Special Meetings.">Section 4.4.&#160; Special Meetings</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_5_Quorum_" title="Click to goto Section 4.5.  Quorum.">Section 4.5.&#160; Quorum</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_6_ActionWithoutMeeting_" title="Click to goto Section 4.6.  Action Without Meeting.">Section 4.6.&#160; Action Without Meeting</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_7_TelephoneMeetings_" title="Click to goto Section 4.7.  Telephone Meetings.">Section 4.7.&#160; Telephone Meetings</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:5.8%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="94%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:94.2%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_8_InterestedDirectors_" title="Click to goto Section 4.8.  Interested Directors.">Section 4.8.&#160; Interested Directors</a></font></p>

  </td>

 </tr>

</table>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='i',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<table border="0" cellspacing="0" cellpadding="0" width="92%" style="border-collapse:collapse;width:92.02%;">

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article5CommitteesOfDirectors" title="Click to goto ARTICLE 5  COMMITTEES OF DIRECTORS">ARTICLE 5 -

  COMMITTEES OF DIRECTORS</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section5_1_Designation_" title="Click to goto Section 5.1.  Designation.">Section 5.1.&#160; Designation</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section5_2_RecordsOfMeetings_" title="Click to goto Section 5.2.  Records of Meetings.">Section 5.2.&#160; Records of Meetings</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article6Notices" title="Click to goto ARTICLE 6   NOTICES">ARTICLE 6 - NOTICES</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section6_1_MethodOfGivingNotice_" title="Click to goto Section 6.1.  Method of Giving Notice.">Section

  6.1.&#160; Method of Giving Notice</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section6_2_Waiver_" title="Click to goto Section 6.2.  Waiver.">Section

  6.2.&#160; Waiver</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article7Officers" title="Click to goto ARTICLE 7  OFFICERS">ARTICLE 7 - OFFICERS</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_1_InGeneral_" title="Click to goto Section 7.1.  In General.">Section

  7.1.&#160; In General</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_2_ElectionOfChairmanOfTh" title="Click to goto Section 7.2.  Election of Chairman of the Board, President, Secretary and Treasurer.">Section

  7.2.&#160; Election of Chairman of the

  Board, President, Secretary and Treasurer</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_3_ElectionOfOtherOfficers" title="Click to goto Section 7.3.  Election of Other Officers.">Section

  7.3.&#160; Election of Other Officers</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_4_Salaries_" title="Click to goto Section 7.4.  Salaries.">Section

  7.4.&#160; Salaries</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_5_TermOfOffice_" title="Click to goto Section 7.5.  Term of Office.">Section 7.5. Term of

  Office</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_6_DutiesOfChairmanOfThe" title="Click to goto Section 7.6.  Duties of Chairman of the Board.">Section

  7.6.&#160; Duties of Chairman of the Board</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_7_DutiesOfPresident_" title="Click to goto Section 7.7.  Duties of President.">Section 7.7.&#160; Duties of President</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_8_DutiesOfVicePresident_" title="Click to goto Section 7.8.  Duties of Vice President.">Section

  7.8.&#160; Duties of Vice President</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_9_DutiesOfSecretary_" title="Click to goto Section 7.9.  Duties of Secretary.">Section 7.9.&#160; Duties of Secretary</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_10_DutiesOfAssistantSecre" title="Click to goto Section 7.10.  Duties of Assistant Secretary.">Section

  7.10.&#160; Duties of Assistant Secretary</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_11_DutiesOfTreasurer_" title="Click to goto Section 7.11.  Duties of Treasurer.">Section 7.11.&#160; Duties of Treasurer</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_12_DutiesOfAssistantTreas" title="Click to goto Section 7.12.  Duties of Assistant Treasurer.">Section

  7.12.&#160; Duties of Assistant Treasurer</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article8" title="Click to goto ARTICLE 8">ARTICLE 8 - RESIGNATIONS, REMOVALS AND

  VACANCIES</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section8_1_Directors_" title="Click to goto Section 8.1.  Directors.">Section

  8.1.&#160; Directors</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section8_2_Officers_" title="Click to goto Section 8.2.  Officers.">Section

  8.2.&#160; Officers</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article9CertificateOfStock" title="Click to goto ARTICLE 9  CERTIFICATE OF STOCK">ARTICLE 9 - CERTIFICATE

  OF STOCK</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_1_IssuanceOfStock_" title="Click to goto Section 9.1.  Issuance of Stock.">Section 9.1.&#160; Issuance of Stock </a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_2_RightToCertificateForm" title="Click to goto Section 9.2.  Right to Certificate; Form.">Section

  9.2.&#160; Right to Certificate; Form</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_3_FacsimileSignature_" title="Click to goto Section 9.3.  Facsimile Signature.">Section 9.3.&#160; Facsimile Signature</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_4_LostCertificates_" title="Click to goto Section 9.4.  Lost Certificates.">Section 9.4.&#160; Lost Certificates</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_5_TransferOfStock_" title="Click to goto Section 9.5.  Transfer of Stock.">Section 9.5.&#160; Transfer of Stock</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_6_RegisteredStockholders_" title="Click to goto Section 9.6.  Registered Stockholders.">Section

  9.6.&#160; Registered Stockholders</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article10Indemnification" title="Click to goto ARTICLE 10  INDEMNIFICATION">ARTICLE 10 -

  INDEMNIFICATION</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_1_ThirdPartyActions_" title="Click to goto Section 10.1.  Third Party Actions.">Section 10.1.&#160; Third Party Actions</a></font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="93%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:93.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_2_DerivativeActions_" title="Click to goto Section 10.2.  Derivative Actions.">Section 10.2.&#160; Derivative Actions</a></font></p>

  </td>

 </tr>

</table>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='ii',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<table border="0" cellspacing="0" cellpadding="0" width="92%" style="border-collapse:collapse;width:92.14%;">

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_3_Expenses_" title="Click to goto Section 10.3.  Expenses.">Section 10.3.&#160; Expenses</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_4_Authorization_" title="Click to goto Section 10.4.  Authorization.">Section 10.4.&#160; Authorization</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_5_AdvancePaymentOfExpens" title="Click to goto Section 10.5.  Advance Payment of Expenses.">Section

  10.5.&#160; Advance Payment of Expenses</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_6_Nonexclusiveness_" title="Click to goto Section 10.6.  Non-Exclusiveness.">Section 10.6.&#160; Non-Exclusiveness</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_7_Insurance_" title="Click to goto Section 10.7.  Insurance.">Section 10.7.&#160; Insurance</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_8_ConstituentCorporations_" title="Click to goto Section 10.8.  Constituent Corporations.">Section

  10.8.&#160; Constituent Corporations</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_9_AdditionalIndemnificatio" title="Click to goto Section 10.9.  Additional Indemnification.">Section

  10.9.&#160; Additional Indemnification</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article11DividendsAndReserves" title="Click to goto ARTICLE 11  DIVIDENDS AND RESERVES">ARTICLE 11 -

  DIVIDENDS AND RESERVES</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section11_1_Dividends_" title="Click to goto Section 11.1.  Dividends.">Section 11.1.&#160; Dividends</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section11_2_Reserves_" title="Click to goto Section 11.2.  Reserves.">Section

  11.2.&#160; Reserves</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article12ExecutionOfPapers" title="Click to goto ARTICLE 12   EXECUTION OF PAPERS">ARTICLE 12 - EXECUTION

  OF PAPERS</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article13FiscalYear" title="Click to goto ARTICLE 13   FISCAL YEAR">ARTICLE 13 - FISCAL YEAR</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article14Depositories" title="Click to goto ARTICLE 14  DEPOSITORIES">ARTICLE 14 - DEPOSITORIES </a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article15Seal" title="Click to goto ARTICLE 15  SEAL">ARTICLE 15 - SEAL</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Art1cle6Offices" title="Click to goto ART1CLE 6  OFFICES">ARTICLE 16 - OFFICES</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.32%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section16_1_RegisteredOffice_" title="Click to goto Section 16.1.  Registered Office.">Section 16.1.&#160; Registered Office</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.32%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section16_2_PrincipalOffice_" title="Click to goto Section 16.2.  Principal Office.">Section 16.2.&#160; Principal Office</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:6.3%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:55.32%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:61.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article17Amendments" title="Click to goto ARTICLE 17   AMENDMENTS">ARTICLE 17 - AMENDMENTS</a></font></p>

  </td>

  <td width="38%" valign="top" bgcolor="white" style="background:white;padding:0in .7pt 0in .7pt;width:38.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='iii',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



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

RESOURCES CORPORATION </font></u></p>



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



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

RESTATED BY - LAWS</font></u></p>



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



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article1CertificateOfIncorporation"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 1</font></u></a></p>



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



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

INCORPORATION</font></u></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section1_1Contents_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.1</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Contents</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

These By-laws, the powers of the corporation and of its Directors and

stockholders, and all matters concerning the conduct and regulation of the

business of the corporation shall be subject to such provisions in regard

thereto, if any, as are set forth in said Certificate of Incorporation.&#160; The Certificate of Incorporation is hereby

made a part of these By-laws.</font></p>



<p style="background:white;margin:0in 0in .0001pt 1.9pt;text-indent:74.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section1_2_CertificateInEffect_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Certificate

in Effect</u>.</font><font size="2" style="font-size:10.0pt;">&#160; All references in these By-laws to the

Certificate of Incorporation shall be construed to mean the Certificate of

Incorporation of the corporation as from time to time amended and restated,

including (unless the context shall otherwise require) all certificates and any

agreement of consolidation or merger filed pursuant to the Delaware General

Corporation Law, as amended.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article2MeetingsOfStockholders"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 2</font></u></a></p>



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



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

STOCKHOLDERS</font></u></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_1_Place_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Place</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

All meetings of the stockholders may be held at such place either within

or without the State of Delaware as shall be designated from time to time by

the Board of Directors, the Chairman of the Board or the President and stated

in the notice of the meeting or in any duly executed waiver of notice thereof.</font></p>



<p style="background:white;margin:0in 0in .0001pt .25pt;text-indent:74.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_2_AnnualMeeting_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Annual

Meeting</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The annual meeting of the stockholders,

commencing in 1995, shall be held each year within 180 days after the close of

the immediately preceding fiscal year of the corporation, at such date and time

as shall be designated from time to time by the Board of Directors, and stated

in the notice or waiver of notice of the meeting.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_3_SpecialMeetings_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.3.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Special

Meetings</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Special meetings of the stockholders, for

any purpose or purposes, unless otherwise prescribed by the General Corporation

Law of the State of Delaware, the Certificate of Incorporation or these

By-laws, may only be called by the President, the Chairman of the Board or a

majority of the Board of Directors then in office.&#160; Such request shall state the purpose or purposes of the proposed

meeting.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='1',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_4_NoticeOfMeetings_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.4.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Notice of

Meetings</u>.</font><font size="2" style="font-size:10.0pt;">&#160; A written notice of all meetings of

stockholders stating the place, date and hour of the meeting and, in the case

of a special meeting, the purpose or purposes for which the special meeting is

called, shall be given to each stockholder entitled to vote at such

meeting.&#160; Except as otherwise provided

by law, such notice shall be given not less than ten nor more than sixty (60)

days before the date of the meeting.&#160; If

mailed, notice is given when deposited in the United States mail, postage

prepaid, directed to the stockholder at his address as it appears on the

records of the corporation.&#160; Business

transacted at any special meeting of stockholders shall be limited to the

purposes stated in the notice.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_5_AffidavitOfNotice_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.5.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Affidavit

of Notice</u>.</font><font size="2" style="font-size:10.0pt;">&#160; An affidavit of the Secretary or an

Assistant Secretary or the transfer agent of the corporation that notice of a

stockholders meeting has been given shall, in the absence of fraud, be prima

facie evidence of the facts stated herein.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_6_Quorum_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.6.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Quorum</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The holders of a majority of the stock issued and outstanding and

entitled to vote thereat, present in person or represented by proxy, shall

constitute a quorum at all meetings of the stockholders for the transaction of

business except as otherwise provided by statute or by the Certificate of

Incorporation or by these By-laws.&#160; If,

however, such quorum shall not be present or represented by proxy at any meeting

of the stockholders, the stockholders entitled to vote thereat, present in

person or represented by proxy, the Chairman of the Board or the President,

shall have power to adjourn the meeting from time to time, without notice other

than announcement at the meeting, except as hereinafter provided, until a

quorum shall be present or represented.&#160;

At such adjourned meeting at which a quorum shall be present or

represented any business may be transacted which might have been transacted at

the original meeting.&#160; If the

adjournment is for more than thirty (30) days, or if after the adjournment a

new record date is fixed for the adjourned meeting, a notice of the adjourned

meeting shall be given to each stockholder of record entitled to vote at the

meeting.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_7_VotingRequirements_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.7.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Voting

Requirements</u>.</font><font size="2" style="font-size:10.0pt;">&#160; When a quorum is present at any meeting, the

vote of the holders of a majority of the stock having voting power present in

person or represented by proxy shall decide any question brought before such

meeting, unless the question is one upon which by express provision of any

applicable statute, the Certificate of Incorporation or these By-laws, a

different vote is required, in which case such express provision shall govern

and control the decision of such question.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_8_ProxiesAndVoting_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.8.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Proxies

and Voting</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Unless otherwise provided by the General

Corporation Law of the State of Delaware, the Certificate of Incorporation or

these By-laws, each stockholder shall at every meeting of the stockholders be

entitled to one vote in person or by proxy for each share of the capital stock

having voting power held by such stockholder, but no proxy shall be voted on

after three years from its date, unless the proxy provides for a longer

period.&#160; Persons holding stock in a

fiduciary capacity shall be entitled to vote the shares so held, and persons

whose stock is pledged shall be entitled to vote the pledged shares, unless in

the transfer by the pledgor on the books of the corporation he shall have</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">expressly empowered the pledgee to vote said shares,

in which case only the pledgee, or his proxy, may represent and vote such

shares.&#160; Shares of the capital stock of

the corporation owned by the corporation shall not be voted, directly or

indirectly.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If shares or other

securities having voting power stand of record in the names of two or more

persons, whether fiduciaries, members of a partnership, joint tenants, tenants

in common, tenants by the entirety or otherwise, or if two or more persons have

the same fiduciary relationship respecting the same shares, unless the

Secretary of the corporation is given written notice to the contrary and is

furnished with a copy of the instrument or order appointing them or creating

the relationship wherein it is so provided, their acts with respect to voting

shall have the following effect;</font></p>



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



<p style="background:white;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160; If only one votes, his

act binds all;</font></p>



<p style="background:white;margin:0in 0in .0001pt 77.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160; If more than one vote,

the act of the majority so voting binds all;</font></p>



<p style="background:white;margin:0in 0in .0001pt 77.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160; If more than one vote,

but the vote is evenly split on any particular matter, each faction may vote

the securities in question proportionally, or any person voting the shares, or

a beneficiary, if any, may apply to the Court of Chancery or such other court

as may have jurisdiction to appoint an additional person to act with the

persons so voting the shares, which shall then be voted as determined by a

majority of such persons and the person appointed by the Court.&#160; If the instrument so filed shows that any

such tenancy is held in unequal interests, a majority or even split for the

purpose of this subsection shall be a majority or even split in interest.</font></p>



<p style="background:white;margin:0in 0in .0001pt 39.1pt;text-indent:38.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_9_DirectorNominations_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.9.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Director

Nominations</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Nominations for the election of Directors

may be made by the Board of Directors or by any stockholder entitled to vote

for the election of Directors.&#160;

Nominations by stockholders shall be made in writing and delivered or

mailed by first class United States mail, postage prepaid, to the Secretary of

the corporation not less than sixty (60) nor more than ninety (90) days prior

to the date of the annual meeting or if the corporation mails its notice and

proxy to the stockholders less than sixty (60) days prior to the annual

meeting, within ten (10) days after the notice and proxy is mailed.&#160; Each stockholder nomination shall set forth (i)

the name, age, business address and, if known, residence address of each

nominee proposed in such nomination, (ii) the principal occupation or

employment of each such nominee, and (iii) the number of shares of capital

stock of the corporation which are beneficially owned by each nominee; and in

addition, evidence of the nominee&#146;s willingness to serve as a Director shall

also be provided.&#160; Upon delivery, such

nominations shall be posted in a conspicuous place in the principal office and

other offices, if any, of the corporation.&#160;

Ballots bearing the names of all persons nominated by the stockholders

shall be provided for use at the annual meeting.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The

chairman of the meeting of stockholders at which any election of Directors is

to occur may, if the facts warrant, determine and declare to the meeting that a

nomination</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">was not made in accordance with the foregoing

procedure, and if he should so determine, he shall so declare to the meeting

and the defective nomination shall be disregarded.</font></p>



<p style="background:white;margin:0in 0in .0001pt 8.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_10_NewBusiness_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.10.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>New

Business</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Any new business to be taken up at any

meeting of the stockholders shall be stated in writing and delivered or mailed

by first class United States mail, postage prepaid, to the Secretary of the

corporation not less than sixty (60) nor more than ninety (90) days before the

date of the annual meeting, or if the corporation mails its notice and proxy to

the stockholders less than sixty (60) days prior to the annual meeting, within

ten (10) days after the notice and proxy is mailed (the &#147;New Business Due

Date&#148;), and all business so stated, proposed, and delivered or mailed shall be

considered at the annual meeting; but no other proposal shall be acted upon at

the annual meeting.&#160; This provision shall

not prevent the consideration and approval or disapproval at the annual meeting

of reports of officers, Directors, and committees; but in connection with such

reports, no new business shall be acted upon at such annual meeting unless

stated and filed as herein provided.&#160; If

the chairman of the annual meeting determines that business was not properly

brought before the annual meeting in accordance with the foregoing procedures,

the chairman shall declare to the meeting that the business was not properly

brought before the meeting and such business shall not be transacted.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_11_ActionWithoutMeeting_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.11.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Action

Without Meeting</u>.</font><font size="2" style="font-size:10.0pt;">&#160; No action required or

permitted to be taken at any annual or special meeting of stockholders of the

corporation may be taken by written consent without a meeting of such

stockholders.</font></p>



<p style="background:white;margin:0in 0in .0001pt .05in;text-indent:76.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_12_StockholderList"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.12.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Stockholder

List</u></font><font size="2" style="font-size:10.0pt;">.&#160; The officer who has charge of the stock

ledger of the corporation shall prepare and make, at least ten (10) days before

every meeting of stockholders, a complete list of the stockholders entitled to

vote at the meeting, arranged in alphabetical order, and showing the address of

each stockholder and the number of shares registered in the name of each

stockholder.&#160; Such list shall be open to

the examination of any stockholder, for any purpose germane to the meeting,

during ordinary business hours, for a period of at least ten (10) days prior to

the meeting either at a place within the city where the meeting is to be held,

which place shall be specified in the notice of the meeting, or, if not so

specified, at the place where the meeting is to be held.&#160; The list shall also be produced and kept at

the time and place of the meeting during the whole time thereof, and may be

inspected by any stockholder who is present.&#160;

The original or duplicate stock ledger shall be the only evidence as to

who are the stockholders entitled to examine such list, the stock ledger or the

books of the corporation, or to vote in person or by proxy at any meeting of

stockholders.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section2_13_RecordDate_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.13.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Record

Date</u>.</font><font size="2" style="font-size:10.0pt;">&#160; In order that the corporation may determine

the stockholders entitled to notice of or to vote at any meeting of

stockholders or any adjournment thereof, or to express consent to corporate

action in writing without a meeting, or entitled to receive payment of any

dividend or other distribution or allotment of any rights or entitled to

exercise any rights in respect of any change, conversion or exchange of stock

or for the purpose of any other lawful action, the Board of Directors may fix,

in advance, a record date, which shall not be more than sixty (60) nor less

than ten (10) days before the</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="background:white;font-size:12.0pt;margin:0in 0in .0001pt 2.65pt;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt 2.65pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">date of such meeting, nor

more than sixty (60) days prior to any other action.&#160; A determination of stockholders of record entitled to notice of

or to vote at a meeting of stockholders shall apply to any adjournment of the

meeting; provided, however, that the Board of Directors may fix a new record

date for the adjourned meeting.</font></p>



<p style="background:white;margin:0in 0in .0001pt 76.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt 76.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If no record date is

fixed by the Board of Directors:</font></p>



<p style="background:white;margin:0in 0in .0001pt 38.9pt;text-indent:36.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt 38.9pt;text-indent:36.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160; The record date for

determining stockholders entitled to notice of or to vote at a meeting of

stockholders shall be at the close of business on the day next preceding the

day on which notice is given, or, if notice is waived, at the close of business

on the day next preceding the day on which the meeting is </font><font size="2" style="font-size:10.0pt;">held.</font></p>



<p style="background:white;margin:0in 0in .0001pt 38.9pt;text-indent:36.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt 38.9pt;text-indent:36.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160; The record date for

determining stockholders for any other purpose shall be at the close of

business on the day on which the Board of Directors adopts the resolution

relating thereto.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article3Directors"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 3</font></u></a></p>



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



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



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section3_1_Duties_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The business and affairs of the corporation shall be managed by or under

the direction of its Board of Directors which may exercise all such powers of

the corporation and do all such lawful acts and things as are not by the

General Corporation Law of the State of Delaware, nor by the Certificate of

Incorporation nor by these By-laws directed or required to be exercised or done

by the stockholders.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section3_2_NumberElectionAndTerm"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Number;

Election and Term of Office</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The number of

Directors which shall constitute the whole Board of the corporation shall be as

determined from time to time exclusively by the Board of Directors and set

forth in a resolution of the Board of Directors.&#160; The Board of Directors shall be divided into three classes as

nearly equal in number as possible.&#160;

Subject to any limitation which may be contained within the Certificate

of Incorporation, the number of the Board of Directors may be increased at any

time by vote of a majority of the Directors then in office.&#160; The members of each class shall be elected

for a term of three years and each Director elected shall hold office until his

successor is elected and qualified or until his earlier resignation or removal.&#160; One class shall be elected annually beginning

in 1995 and the terms of the Class I, Class II and Class III Directors shall

expire upon the election and qualification of successor Directors at the annual

meetings of stockholders held in 1995, 1996 and 1997, respectively.&#160; Directors need not be stockholders.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section3_3_Compensation_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.3.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Compensation</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

Unless otherwise restricted by the Certificate of Incorporation or these

By-laws, the Board of Directors shall have the authority to fix the

compensation of Directors.&#160; The Directors

may be paid their expenses, if any, of attendance at</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">each meeting of the Board of Directors and may be paid

a fixed sum for attendance at each meeting of the Board of Directors or a

stated salary as Directors.&#160; No such

payment shall preclude any Director from serving the corporation in any other

capacity and receiving compensation therefor.&#160;

Members of special or standing committees may be allowed like

compensation for attending committee meetings.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section3_4_RelianceOnBooks_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.4.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Reliance

on Books</u>.</font><font size="2" style="font-size:10.0pt;">&#160; A member of the Board of Directors or a

member of any committee designated by the Board of Directors shall, in the

performance of his duties, be fully protected in relying in good faith upon the

books of account or reports made to the corporation by any of its officers, or

by an independent certified public accountant, or by an appraiser selected with

reasonable care by the Board of Directors or by any committee, or in relying in

good faith upon other records of the corporation.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article4MeetingsOfTheBoardOfDir"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 4 </font></u></a></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">MEETINGS OF THE BOARD

OF DIRECTORS</font></u></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_1_Place_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Place</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The Board of Directors of the corporation may hold meetings, both

regular and special, at such place or places within or without the State of

Delaware as the Board of Directors may from time to time determine, or as may

be specified or fixed in the respective notices or waivers of notice of such

meeting.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_2_AnnualMeeting_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Annual

Meeting</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The annual meeting of the Board of Directors

shall be held immediately following the annual meeting of stockholders each

year or any special meeting held in lieu thereof, or at such other time as the

Board of Directors may from time to time determine or as may be specified or

fixed in the notices or waivers of notice of such meeting.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_3_RegularMeetings_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.3.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Regular

Meetings</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Regular meetings of the Board of Directors

may be held without notice at such time and at such place as shall from time to

time be determined by the Board.</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:74.65pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_4_SpecialMeetings_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.4.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Special

Meetings</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Special meetings of the Board may be called

by the Chairman of the Board or the President on two (2) days&#146; notice to each

Director either personally, by mail, by telegram or by facsimile.&#160; Special meetings shall be called by the

Chairman of the Board, the President or the Secretary in like manner and on

like notice on the written request of any two Directors unless the Board

consists of only one Director, in which case special meetings shall be called

by the Chairman of the Board, the President or the Secretary in like manner and

on like notice on the written request of the sole Director.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_5_Quorum_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.5.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Quorum</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

At all meetings of the Board, a majority of the Directors then in office

shall constitute a quorum for the transaction of business and the act of a

majority of the Directors present at any meeting at which there is a quorum

shall be the act</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the Board of Directors, except as may be otherwise

specifically provided by statute or by the Certificate of Incorporation or by

these By-laws.&#160; Common or interested

Directors may be counted in determining the presence of a quorum at a meeting

of the Board of Directors.&#160; If a quorum

shall not be present at any meeting of the Board of Directors, the Directors

present thereat may adjourn the meeting from time to time, without notice other

than announcement at the meeting, until a quorum shall be present.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_6_ActionWithoutMeeting_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.6.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Action

Without Meeting</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Unless otherwise restricted by

the Certificate of Incorporation or these By-laws, any action required or

permitted to be taken at any meeting of the Board of Directors or of any

committee thereof may be taken without a meeting, if all members of the Board

or committee, as the case may be, consent thereto in writing, and the writing

or writings are filed with the minutes of proceedings of the Board or committee.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_7_TelephoneMeetings_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.7.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Telephone

Meetings</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Unless otherwise restricted by the

Certificate of Incorporation or these By-laws, members of the Board of

Directors, or any committee designated by the Board of Directors, may

participate in a meeting of the Board of Directors, or any committee, by means

of conference telephone or similar communications equipment by means of which

all persons participating in the meeting can hear each other, and such

participation in a meeting shall constitute presence in person at the meeting.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section4_8_InterestedDirectors_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.8.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Interested

Directors</u>.</font></p>



<p style="background:white;margin:0in 0in .0001pt 1.05in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a) No contract or

transaction between a corporation and one or more of its Directors or officers,

or between a corporation and any other corporation, partnership, association,

or other organization in which one or more of its Directors or officers are

Directors or officers, or have a financial interest, shall be void or voidable

solely for this reason, or solely because the Director or officer is present at

or participates in the meeting of the Board or committee which authorizes the

contract or transaction, or solely because his or their votes are counted for

such purpose, if:</font></p>



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



<p style="background:white;margin:0in 0in .0001pt 37.45pt;text-indent:37.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)

the material facts as to his relationship or interest and as to the contract or

transaction are disclosed or are known to the Board of Directors or the

committee, and the Board or committee in good faith authorizes the contract or

transaction by the affirmative vote of a majority of the disinterested

Directors, even though the disinterested Directors be less than a quorum; or</font></p>



<p style="background:white;margin:0in 0in .0001pt 37.45pt;text-indent:37.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt 37.45pt;text-indent:36.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii) the

material facts as to his relationship or interest and as to the contract or

transaction are disclosed or are known to the stockholders entitled to vote

thereon, and the contract or transaction is specifically approved in good faith

by vote of the stockholders; or</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='7',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt 9.6pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt 37.45pt;text-indent:36.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160; the contract or transaction is fair as to

the corporation as of the time it is authorized, approved or ratified by the

Board of Directors, a committee or the stockholders.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt 2.65pt;text-indent:74.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)

Common or interested Directors may be counted in determining the presence of a

quorum at a meeting of the Board of Directors or of a committee which

authorizes the contract or transaction.</font></p>



<p style="background:white;margin:0in 0in .0001pt 2.65pt;text-indent:74.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article5CommitteesOfDirectors"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 5</font></u></a></p>



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



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

DIRECTORS</font></u></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:78.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section5_1_Designation_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Designation</u>.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The Board of Directors may by resolution

passed by a majority of the whole Board, designate one or more committees, each

committee to consist of one or more of the Directors of the corporation.&#160; The Board may designate one or more

Directors as alternate members of any committee, who may replace any absent or

disqualified member at any meeting of the committee.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; In the absence or disqualification of a

member of a committee, the member or members thereof present at any meeting and

not disqualified from voting, whether or not he or they constitute a quorum,

may unanimously appoint another member of the Board of Directors to act at the

meeting in the place of any such absent or disqualified member.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; Any such committee, to the extent provided

in the resolution of the Board of Directors designating the committee, shall

have and may exercise all the powers and authority of the Board of Directors in

the management of the business and affairs of the corporation, and may

authorize the seal of the corporation to be affixed to all papers which may

require it; but no such committee shall have the power or authority in

reference to amending the Certificate of Incorporation, (except that a

committee may, to the extent authorized in the resolution or resolutions providing

for the issuance of shares of stock adopted by the Board of Directors, fix the

designations and any of the preferences or rights of such shares relating to

dividends, redemption, dissolution, any distribution of assets of the

corporation or the conversion into, or the exchange of such shares for, shares

of any other class or the classes or any other series of the same or any other

class or classes of stock of the corporation or fix the number of shares of any

series of stock or authorize the increase or decrease of the shares of any

series), adopting an agreement of merger or consolidation, recommending to the

stockholders the sale, lease or exchange of all or substantially all of the

corporation&#146;s property and assets, recommending to the stockholders a dissolution

of the corporation or a revocation of a dissolution, or amending the By-laws of

the corporation; and, unless the resolution, these By-laws or the Certificate

of Incorporation expressly so provide, no such committee shall have the power

or authority to declare a dividend, to authorize the</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='8',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt 6.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">issuance of stock or to

adopt a certificate of ownership and merger.&#160;

Such committee or committees shall have such name or names as may be

determined from time to time by resolution adopted by the Board of Directors.</font></p>



<p style="background:white;margin:0in 0in .0001pt 6.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section5_2_RecordsOfMeetings_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Records of

Meetings</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Each committee shall keep regular minutes of

its meetings and report the same to the Board of Directors when required.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt 4.3pt;text-align:center;text-indent:-4.3pt;"><a name="Article6Notices"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 6 </font></u></a></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 4.3pt;text-align:center;text-indent:-4.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 4.3pt;text-align:center;text-indent:-4.3pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOTICES</font></u></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 4.3pt;text-align:center;text-indent:-4.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section6_1_MethodOfGivingNotice_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Method of

Giving Notice</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Whenever, under any provision

of the General Corporation Law of the State of Delaware or of the Certificate

of Incorporation or of these By-laws, notice is required to be given to any

Director or stockholder, such notice shall be given in writing by the Secretary

or the person or persons calling the meeting by leaving such notice with such

Director or stockholder at his residence or usual place of business or by

mailing it addressed to such Director or stockholder, at his address as it appears

on the records of the corporation, with postage thereon prepaid, and such

notice shall be deemed to be given at the time when the same shall be

personally delivered or deposited in the United States mail.&#160; Notice to Directors may also be given by telegram

or facsimile.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section6_2_Waiver_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Waiver</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

Whenever any notice is required to be given under any provision of the

General Corporation Law of the State of Delaware or of the Certificate of

Incorporation or of these By-laws, a waiver thereof in writing, signed by the

person or persons entitled to said notice, whether before or after the time

stated therein, shall be deemed equivalent to notice.&#160; Attendance of a person at a meeting shall constitute a waiver of

notice of such meeting, except when the person attends the meeting for the

express purpose of objecting at the beginning of the meeting to the transaction

of any business because the meeting is not lawfully called or convened.&#160; Neither the business to be transacted at,

nor the purpose of, any regular or special meeting of the stockholders,

Directors or members of a committee of Directors need be specified in any

written waiver of notice.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article7Officers"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 7</font></u></a></p>



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



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



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_1_InGeneral_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>In General</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The officers of the corporation shall be chosen by the Board of Directors

and shall include a Chairman of the Board, a President, a Secretary and a

Treasurer.&#160; The Board of Directors may

also choose one or more Vice Presidents, Assistant Secretaries and Assistant

Treasurers.&#160; Any number of offices may

be held by the same person, unless the Certificate of Incorporation or these

By-laws otherwise provide.</font></p>



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



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





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='9',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_2_ElectionOfChairmanOfTh"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Election

of Chairman of the Board, President, Secretary and Treasurer</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The Board of Directors at its first meeting after each annual meeting of

stockholders shall choose a Chairman of the Board, a President, a Secretary and

a Treasurer.&#160; In addition, the Board

shall designate the Chairman or the President as the Chief Executive Officer of

the Corporation, who shall have executive authority to see that all orders and

resolutions of the Board of Directors are carried into effect, and, subject to

the control vested in the Board of Directors by statute, by the Certificate of

Incorporation or by these By-Laws, shall administer and be responsible for the

overall management of the business and affairs of the Corporation.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_3_ElectionOfOtherOfficers"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.3.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Election

of Other Officers</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Board of Directors may

appoint such other officers and agents as<i><font style="font-style:italic;">  </font></i>it

shall deem appropriate who shall hold their offices for such terms and shall

exercise such powers and perform such duties as shall be determined from time

to time by the Board.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_4_Salaries_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.4.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Salaries</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The salaries of all officers and agents of the corporation may be fixed

by the Board of Directors.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_5_TermOfOffice_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.5.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Term of

Office</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The officers of the corporation shall hold

office until their successors are elected and qualified or until their earlier

resignation or removal.&#160; Any officer

elected or appointed by the Board of Directors may be removed at any time in

the manner specified in Section 8.2<i><font style="font-style:italic;">.</font></i></font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_6_DutiesOfChairmanOfThe"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.6.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

Chairman of the Board</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Chairman

of the Board shall preside at all meetings of the stockholders and of the Board

of Directors, shall advise and counsel with the President shall assume such

other duties as from time to time may be assigned to him by the Board of

Directors.&#160; Notwithstanding the

succession otherwise specified in these bylaws for fulfilling the

responsibilities and duties of the Chairman, the Board may designate any

officer or director to fulfill the Chairman's duties in the event of his or her

absence, inability or refusal to act, and the succession provisions provided

for in these bylaws shall apply in the absence of any specific Board

designation.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_7_DutiesOfPresident_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.7.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

President</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The President shall perform all duties

incident to the office of the President and such other duties as may from time

to time be assigned by the Board of Directors or the Chairman of the Board.&#160; In the absence or disability of the Chairman

of the Board, he shall perform the duties of the Chairman of the Board.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_8_DutiesOfVicePresident_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.8.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

Vice President</u>.</font><font size="2" style="font-size:10.0pt;">&#160; In the absence of the Chairman

of the Board, the President or in the event of their inability or refusal to

act, the Vice President (or in the event there be more than one Vice President,

the Vice Presidents in the order designated by the Directors, or in the absence

of any designation, then in the order of their election) shall perform the

duties of the President, and when so acting, shall have all the powers of and

be subject to all the restrictions upon the President.&#160; The Vice President shall perform such other

duties and have such other powers as the Board of Directors, the Chairman of the

Board or the President may from time to time prescribe.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_9_DutiesOfSecretary_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.9.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

Secretary</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Secretary shall attend all meetings of

the Board of Directors and all meetings of the stockholders and record all the

proceedings of</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='10',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the meetings of the corporation and of the Board of

Directors in a book to be kept for that purpose and shall perform like duties

for the standing committees when required.&#160;

He shall give, or cause to be given, notice of all meetings of the

stockholders and special meetings of the Board of Directors, except as

otherwise provided in these By-laws, and shall perform such other duties as may

be prescribed by the Board of Directors, the Chairman of the Board or the

President, under whose supervision he shall be.&#160; He shall have charge of the stock ledger (which may, however, be

kept by any transfer agent or agents of the corporation under his direction)

and of the corporate seal of the corporation.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_10_DutiesOfAssistantSecre"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.10.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

Assistant Secretary</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Assistant

Secretary, or if there be more than one, the Assistant Secretaries in the order

determined by the Board of Directors (or if there be no such determination,

then in the order of their election) shall, in the absence of the Secretary or

in the event of his inability or refusal to act, perform the duties and

exercise the powers of the Secretary and shall perform such other duties and

have such other powers as the Board of Directors or the Chairman of the Board

may from time to time prescribe.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_11_DutiesOfTreasurer_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.11.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

Treasurer</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Treasurer shall have the custody of the

corporate funds and securities and shall keep full and accurate accounts of

receipts and disbursements in books belonging to the corporation and shall

deposit all moneys and other valuable effects in the name and to the credit of

the corporation in such depositories as may be designated by the Board of

Directors.&#160; The Treasurer shall disburse

or supervise the disbursement of the funds of the corporation as may be ordered

by the Board of Directors, taking proper vouchers for such disbursements, and

shall render to the Board of Directors, at its regular meetings, or when the

Board of Directors so requires, an account of all of his transactions as

Treasurer and of the financial condition of the corporation.&#160; If required by the Board of Directors, he

shall give the corporation a bond in such sum and with such surety or sureties

as shall be satisfactory to the Board of Directors for the faithful performance

of the duties of this office and for the restoration to the corporation, in

case of his death, resignation, retirement or removal from office, of all

books, papers, vouchers, money and other property of whatever kind in his

possession or under his control belonging to the corporation.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section7_12_DutiesOfAssistantTreas"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.12.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Duties of

Assistant Treasurer</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Assistant

Treasurer, or if there shall be more than one, the Assistant Treasurers in the

order determined by the Board of Directors (or if there be no such

determination, then in the order of their election), shall, in the absence of

the Treasurer or in the event of his inability or refusal to act, perform the

duties and exercise the powers of the Treasurer and shall perform such other

duties and have such other powers as the Board of Directors or the Chairman of

the Board may from time to time prescribe.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='11',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;text-indent:6.5pt;"><a name="Article8"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 8</font></u></a></p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;text-indent:6.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;text-indent:6.5pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">RESIGNATIONS, REMOVALS AND VACANCIES</font></u></p>



<p style="background:white;margin:0in 0in .0001pt 79.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section8_1_Directors_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Directors</u>.</font></p>



<p style="background:white;margin:0in 0in .0001pt .25pt;text-indent:77.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Resignations</u>.&#160; Any Director may resign at any time by

giving written notice to the Board of Directors, the Chairman of the Board, the

President or the Secretary.&#160; Such

resignation shall take effect at the time specified therein; and unless

otherwise specified therein, the acceptance of such resignation shall not be

necessary to make it effective.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Removals</u>.&#160; Subject to any provisions of the Certificate of Incorporation,

the holders of stock entitled to vote for the election of Directors may, at any

meeting called for that purpose, by the affirmative vote of not less than

two-thirds (66 2/3%) of the shares of such stock outstanding and entitled to

vote thereat, remove any Director or the entire Board of Directors, but only

for cause.</font></p>



<p style="background:white;margin:0in 0in .0001pt 1.2pt;text-indent:76.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever the holders of

any class or series are entitled to elect one or more Directors by the

Certificate of Incorporation, this subsection shall apply, in respect to the

removal of a Director or Directors so elected, to the vote of the holders of

the outstanding shares of that class or series and not to the vote of the

outstanding shares as a whole.</font></p>



<p style="background:white;margin:0in 0in .0001pt .25pt;text-indent:77.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; <u>Vacancies</u>. &#160;Vacancies occurring in the office of Director and newly created

Directorships resulting from any increase in the authorized number of Directors

shall be filled by a majority of the Directors then in office, though less than

a quorum,&#160; and the Directors so chosen

shall hold office, subject to the By-laws, until the next election of the class

for which such Directors shall have been chosen, and until their successors are

duly elected and qualified or until their earlier resignation or removal.&#160; Whenever the holders of any class or classes

of stock or series thereof are entitled to elect one or more Directors by the

Certificate of Incorporation, vacancies and newly created Directorships of such

class or classes or series may be filled by a majority of the Directors elected

by such class or classes or series thereof then in office, or by a sole

remaining Director so elected.</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:76.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If there are no Directors

in office, then an election of Directors may be held in the manner provided by

statute.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise provided

in the Certificate of Incorporation or these By-laws, when one or more

Directors shall resign from the Board, effective at a future date, a majority

of the Directors then in office, including those who have so resigned, shall

have power to fill such vacancy or vacancies, the vote thereon to take effect

when such resignation or resignations shall become effective, and each Director

so chosen shall hold office as provided in this section in the filling of other

vacancies.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='12',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section8_2_Officers_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Officers</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

Any officer may resign at any time by giving written notice to the Board

of Directors, the Chairman of the Board, the President or the Secretary.&#160; Such resignation shall take effect at the

time specified therein; and unless otherwise specified therein, the acceptance

of such resignation shall not be necessary to make it effective.&#160; The Board of Directors may, at any meeting

called for that purpose, by vote of a majority of their entire number, remove

from office any officer of the corporation or any member of a committee, with

or without cause.&#160; Any vacancy occurring

in the office of Chairman of the Board, President, Secretary or Treasurer shall

be filled by the Board of Directors and the officers so chosen shall hold

office subject to the By-laws for the unexpired term in respect of which the

vacancy occurred and until their successors shall be elected and qualify or

until their earlier resignation or removal.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article9CertificateOfStock"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 9</font></u></a></p>



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



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

STOCK</font></u></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section9_1_IssuanceOfStock_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Issuance

of Stock</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Directors may, at any time and from time

to time, if all of the shares of capital stock which the corporation is

authorized by its Certificate of Incorporation to issue have not been issued,

subscribed for, or otherwise committed to be issued, issue or take

subscriptions for additional shares of its capital stock up to the amount

authorized in its Certificate of Incorporation.&#160; Such stock shall be issued and the consideration paid therefor in

the manner prescribed by law.&#160; Shares of

stock with par value may be issued for such consideration, having a value not

less than par value thereof.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section9_2_RightToCertificateForm"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Right to

Certificate; Form</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Every holder of stock in the

corporation shall be entitled to have a certificate, signed by, or in the name

of the corporation by,<i><font style="font-style:italic;">  </font></i>the

Chairman of the Board, the President or a Vice President and the Treasurer or

an Assistant Treasurer, or the Secretary or an Assistant Secretary of the

corporation, certifying the number of shares owned by him in the corporation;

provided that the Directors may provide by one or more resolutions that some or

all of any or all classes or series of the corporation&#146;s stock shall be

uncertificated shares.&#160; Certificates may

be issued for partly paid shares and in such case upon the face or back of the

certificates issued to represent any such partly paid shares, the total amount

of the consideration to be paid therefor, and the amount paid thereon, shall be

specified.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section9_3_FacsimileSignature_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section

9.3.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Facsimile Signature</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Any of or all the signatures on the </font><font size="2" style="font-size:10.0pt;">certificate may be facsimile.&#160; In case any officer, transfer agent or

registrar who has signed or whose facsimile signature has been placed upon a

certificate shall have ceased to be such officer, transfer agent or registrar

before such certificate is issued, it may be issued by the corporation with the

same effect as if he were such officer, transfer agent or registrar at the date

of issue.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='13',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section9_4_LostCertificates_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.4.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Lost

Certificates</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The Board of Directors may direct a new

certificate or certificates to be issued in place of any certificate or

certificates theretofore issued by the corporation alleged to have been lost,

stolen or destroyed, upon the making of an affidavit of that fact by the person

claiming the certificate of stock to be lost, stolen or destroyed.&#160; When authorizing such issue of a new

certificate or certificates, the Board of Directors may, in its discretion and

as a condition precedent to the issuance thereof, require the owner of such

lost, stolen or destroyed certificate or certificates, or his legal

representative, to advertise the same in such manner as it shall require and/or

to give the corporation a bond in such sum as it may direct as indemnity

against any claim that may be made against the corporation with respect to the

certificate alleged to have been lost, stolen or destroyed.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section9_5_TransferOfStock_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.5.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Transfer

of Stock</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Upon surrender to the corporation or the

transfer agent of the corporation of a certificate for shares duly endorsed or

accompanied by proper evidence of succession, assignation or authority to

transfer, it shall be the duty of the corporation to issue a new certificate to

the person entitled thereto, cancel the old certificate and record the

transaction upon its books.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section9_6_RegisteredStockholders_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.6.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Registered

Stockholders</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The corporation shall be entitled to

recognize the exclusive right of a person registered on its books as the owner

of shares to receive dividends, and to vote as such owner, and to hold liable

for calls and assessments a person registered on its books as the owner of

shares, and shall not be bound to recognize any equitable or other claim to or

interest in such share or shares on the part of any other person, whether or

not it shall have express or other notice thereof, except as otherwise provided

by the General Corporation Law of the State of Delaware.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article10Indemnification"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 10</font></u></a></p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;text-indent:20.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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



<p style="background:white;margin:0in 0in .0001pt 121.45pt;text-indent:20.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_1_ThirdPartyActions_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Third

Party Actions</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The corporation shall

indemnify any person who was or is a party or is threatened to be made a party

to any threatened, pending or completed action, suit or proceeding, whether

civil, criminal, administrative or investigative (other than an action by or in

the right of the corporation) by reason of the fact that he is or was a

Director, officer, employee or agent of the corporation, or is or was serving

at the request of the corporation as a Director, officer, employee or agent of

another corporation, partnership, joint venture, trust or other enterprise,

against expenses (including attorneys&#146; fees), judgments, fines and amounts paid

in settlement actually and reasonably incurred by him in connection with such

action, suit or proceeding if he acted in good faith and in a manner he

reasonably believed to be in or not opposed to the best interests of the

corporation, and, with respect to any criminal action or proceeding, had no

reasonable cause to believe his conduct was unlawful.&#160; The termination of any action, suit or proceeding by judgment,

order, settlement, conviction, or upon plea of nolo contendere or its equivalent,

shall not, of itself,</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='14',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">create a presumption that the person did not act in

good faith and in a manner which he reasonably believed to be in or not opposed

to the best interests of the corporation, and, with respect to any criminal

action or proceeding, had reasonable cause to believe that his conduct was

unlawful.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_2_DerivativeActions_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Derivative

Actions</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The corporation shall indemnify any person

who was or is a party or is threatened to be made a party to any threatened,

pending or completed action or suit by or in the right of the corporation to

procure a judgment in its favor by reason of the fact that he is or was a

Director, officer, employee or agent of the corporation, or is or was serving

at the request of the corporation as a Director, officer, employee or agent of

another corporation, partnership, joint venture, trust or other enterprise

against expenses (including attorneys&#146; fees) actually and reasonably incurred

by him in connection with the defense or settlement of such action or suit if

he acted in good faith and in a manner he reasonably believed to be in or not

opposed to the best interests of the corporation and except that no

indemnification shall be made in respect of any claim, issue or matter as to

which such person shall have been adjudged to be liable to the corporation

unless and only to the extent that the Court of Chancery or the court in which

such action or suit was brought shall determine upon application that, despite

the adjudication of liability but in view of all the circumstances of the case,

such person is fairly and reasonably entitled to indemnity for such expenses

which the Court of Chancery or such other court shall deem proper.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_3_Expenses_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.3.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Expenses</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

To the extent that a Director, officer, employee or agent of the

corporation has been successful on the merits or otherwise in defense of any

action, suit or proceeding referred to in Sections 10.1 and 10.2, or in defense

of any claim, issue or matter therein, he shall be indemnified against expenses

(including attorneys&#146; fees) actually and reasonably incurred by him in

connection therewith.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_4_Authorization_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.4.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Authorization</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

Any indemnification under Sections 10.1 and 10.2 (unless ordered by a

court) shall be made by the corporation only as authorized in the specific case

upon a determination that indemnification of the Director, officer, employee or

agent is proper in the circumstances because he has met the applicable standard

of conduct set forth in Sections 10.1 and 10.2.&#160; Such determination shall be made by (a) the Board of Directors by

a majority vote of a quorum consisting of Directors who were not parties to

such action, suit or proceeding, or (b) if such a quorum is not obtainable, or,

even if obtainable, a quorum of disinterested Directors so directs, by

independent legal counsel in a written opinion, or (c) by the stockholders.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_5_AdvancePaymentOfExpens"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.5.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Advance

Payment of Expenses</u>.</font><font size="2" style="font-size:10.0pt;">&#160; Expenses

(including attorneys&#146; fees) incurred by an officer or Director in defending any

civil, criminal, administrative or investigative action, suit or proceeding may

be paid by the corporation in advance of the final disposition of such action,

suit or proceeding upon receipt of an undertaking by or on behalf of such

officer or Director to repay such amount if it shall ultimately be determined

that he is not entitled to be indemnified by the corporation as authorized in

this Article 10.&#160; Such</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='15',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">expenses (including attorneys&#146; fees) incurred by other

employees and agents may be so paid upon such terms and conditions, if any, as

the Board of Directors deems appropriate.</font></p>



<p style="background:white;margin:0in 0in .0001pt 6.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_6_Nonexclusiveness_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.6.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Non-Exclusiveness</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The indemnification and advancement of expenses provided by this Article

10 shall not be deemed exclusive of any other rights to which those seeking

indemnification or advancement of expenses may be entitled under any By-Law,

agreement, vote of stockholders or disinterested Directors or otherwise, both

as to action in his official capacity and as to action in another capacity

while holding such office.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The indemnification and

advancement of expenses provided by, or granted pursuant to, this Article 10

shall, unless otherwise provided when authorized or ratified, continue as to a

person who has ceased to be a Director, officer, employee or agent and shall

inure to the benefit of the heirs, executors and administrators of such a

person.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_7_Insurance_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.7.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Insurance</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The corporation shall have power to purchase and maintain insurance on

behalf of any person who is or was a Director, officer, employee or agent of

the corporation, or is or was serving at the request of the corporation as a

Director, officer, employee or agent of another corporation, partnership, joint

venture, trust or other enterprise against any liability asserted against him

and incurred by him in any such capacity, or arising out of his status as such,

whether or not the corporation would have the power to indemnify him against

such liability under the provisions of this Article 10.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this

Article 10, references to &#147;other enterprises&#148; shall include employee benefit

plans; references to &#147;fines&#148; shall include any excise taxes assessed on a

person with respect to any employee benefit plan; and references to &#147;serving at

the request of the corporation&#148; shall include any quotes service as a Director,

officer, employee or agent of the corporation which imposes duties on, or

involves services by, such Director, officer, employee or agent with respect to

an employee benefit plan, its participants or beneficiaries; and a person who

acted in good faith and in a manner he reasonably believed to be in the

interest of the participants and beneficiaries of an employee benefit plan

shall be deemed to have acted in a manner &#147;not opposed to the best interests of

the corporation&#148; as referred to in this section.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_8_ConstituentCorporations_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.8.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Constituent

Corporations</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The corporation shall have power to

indemnify any person who is or was a Director, officer, employee or agent of a

constituent corporation absorbed in a consolidation or merger with this

corporation or is or was serving at the request of such constituent corporation

as a Director, officer, employee or agent of another corporation, partnership,

joint venture, trust or other enterprise, in the same manner as hereinabove

provided if such constituent corporation&#146;s separate existence had continued,

would have had power and authority to indemnify its Directors, officers, and

employees or agents.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section10_9_AdditionalIndemnificatio"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.9.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Additional

Indemnification</u>.</font><font size="2" style="font-size:10.0pt;">&#160; In addition to the foregoing

provisions of this Article 10, the corporation shall have the power, to the

full extent provided</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='16',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by law, to indemnify any person for any act or

omission of such person against all loss, cost, damage and expense (including

attorneys&#146; fees) if such person is determined (in the manner prescribed in

Section 10.4 hereof) to have acted in good faith and in a manner he reasonably

believed to be in, or not opposed to, the best interest of the corporation.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article11DividendsAndReserves"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 11</font></u></a></p>



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



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

RESERVES</font></u></p>



<p style="background:white;margin:0in 0in .0001pt .5pt;text-indent:76.1pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></u></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section11_1_Dividends_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Dividends</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The Board of Directors of the corporation, subject to any restrictions

contained in the Certificate of Incorporation and other lawful commitments of

the corporation, may declare and pay dividends upon the shares of its capital

stock either out of the surplus of the corporation, as defined in and computed

in accordance with the General Corporation Law of the State of Delaware, or in

case there shall be no such surplus, out of the net profits of the corporation

for the fiscal year in which the dividend is declared and/or the preceding

fiscal year.&#160; If the capital of the

corporation, computed in accordance with the General Corporation Law of the State

of Delaware, shall have been diminished by depreciation in the value of its

property, or by losses, or otherwise, to an amount less than the aggregate

amount of the capital represented by the issued and outstanding stock of all

classes having a preference upon the distribution of assets, the Board of

Directors of the corporation shall not declare and pay out of such net profits

any dividends upon any shares of any classes of its capital stock until the

deficiency in the amount of capital represented by the issued and outstanding

stock of all classes having a preference upon the distribution of assets shall

have been repaired.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section11_2_Reserves_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Reserves</u>.</font><font size="2" style="font-size:10.0pt;">&#160;

The Board of Directors of the corporation may set apart, out of any of

the funds of the corporation available for dividends, a reserve or reserves for

any proper purpose and may abolish any such reserve.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article12ExecutionOfPapers"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 12 </font></u></a></p>



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



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

PAPERS</font></u></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise

provided in these By-laws or as the Board of Directors may generally or in

particular cases otherwise determine, all deeds, leases, transfers, contracts,

bonds, notes, checks, drafts and other instruments authorized to be executed on

behalf of the corporation shall be executed by any officer, agent or agents as

may be authorized by the Board of Directors from time to time.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='17',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article13FiscalYear"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 13 </font></u></a></p>



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



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



<p style="background:white;margin:0in 0in .0001pt 2.15pt;text-indent:73.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The fiscal year of the

corporation shall end on the 31st day of December of each year.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article14Depositories"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 14</font></u></a></p>



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



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



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board of Directors or

an officer designated by the Board shall appoint banks, trust companies, or

other depositories in which shall be deposited from time to time the money or

securities of the corporation.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt 3.35pt;text-align:center;"><a name="Article15Seal"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 15</font></u></a></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 3.35pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 3.35pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SEAL</font></u></p>



<p align="center" style="background:white;margin:0in 0in .0001pt 3.35pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Corporate seal shall

have inscribed thereon the name of the corporation, the year of its

organization and the word &#147;Delaware.&#148;&#160;

The seal may be used by causing it or a facsimile thereof to be

impressed or affixed or reproduced or otherwise.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Art1cle6Offices"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ART1CLE 16</font></u></a></p>



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



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:73.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section16_1_RegisteredOffice_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.1.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Registered

Office</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The registered office in the State of

Delaware shall be located at 1209 Orange Street, in the City of Wilmington,

County of New Castle.&#160; The name of the

corporation&#146;s registered agent at such address shall be The Corporation Trust

Corporation.</font></p>



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><a name="Section16_2_PrincipalOffice_"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.2.</font></u></a><font size="2" style="font-size:10.0pt;">&#160; <u>Principal

Office</u>.</font><font size="2" style="font-size:10.0pt;">&#160; The corporation may also have offices within

and without the State of Delaware as the Board of Directors may from time to

time determine or the business of the corporation may require.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='18',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex3d1.htm',USER='chendri',CD='Aug 14 08:39 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="background:white;font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><a name="Article17Amendments"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 17 </font></u></a></p>



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



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



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



<p style="background:white;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These By-laws may be

amended or repealed by the vote of a majority of the directors present at any

meeting at which a quorum is present or by the vote of the holders of

two-thirds of the total outstanding voting stock of the corporation, present in

person or represented by proxy, at any meeting of stockholders at which a

quorum is present.</font></p>



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



<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>





<div style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>4
<FILENAME>j4412_ex4d1.htm
<DESCRIPTION>EX-4.1
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body link="blue" vlink="purple">



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



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT 4.1</font></b></p>



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



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

dated as of August 7, 2002 (this &#147;<u>Amendment</u>&#148;), among Alternative

Resources Corporation (&#147;<u>ARC</u>&#148;), ARC Service, Inc., ARC Solutions, Inc.,

ARC Midholding, Inc., and Writers Inc. (collectively, the &#147;<u>Borrowers</u>&#148;),

and Fleet Capital Corporation (the &#147;<u>Lender</u>&#148;), amends the Credit and

Security Agreement dated as of January 31, 2002 (the &#147;<u>Credit Agreement</u>&#148;),

between the Borrowers and the Lender.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, ARC and its Subsidiaries failed to satisfy

the Fixed Charge Coverage Ratio set forth in Section 8.10(b) of the Credit

Agreement for the period of two fiscal quarters ended June 30, 2002 and such

failure constitutes an Event of Default under Section 9.1(c) of the Credit

Agreement (the &#147;<u>June 30, 2002 Event of Default</u>&#148;);</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Credit Parties have requested that the

Lender waive the June 30, 2002 Event of Default as provided herein, and amend

certain provisions of the Credit Agreement; and</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Lender has agreed to waive the June 30,

2002 Event of Default and to amend certain provisions of the Credit Agreement,

all subject to the terms, conditions and limitations set forth herein;</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the foregoing and

the agreements contained herein, the parties hereby agree as follows:</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Capitalized

Terms</u>.</p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capitalized terms used herein which are defined in the

Credit Agreement have the same meanings herein as therein, except to the extent

that such meanings are amended hereby.</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Waiver

of June 30, 2002 Event of Default.</u></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the satisfaction of the terms and

conditions set forth in Section 5 hereof, the Lender hereby waives the June 30,

2002 Event of Default.&#160; The parties

agree that the foregoing waiver is limited solely to the Event of Default

arising out of the failure of ARC and its Subsidiaries to satisfy the Fixed

Charge Coverage Ratio covenant set forth in Section 8.10(b) of the Credit

Agreement for the period of two fiscal quarters ended June 30, 2002, and nothing

herein shall be construed as a waiver of any other presently existing or future

Event of Default (including without limitation, any Event of Default caused by

reason of the failure of the Borrowers to comply with Section 8.10(b) of the

Credit Agreement, as amended hereby, on any other occasion or for any other

period) or any failure of the Borrowers to comply with any other provision,

term or condition of the Loan Documents.</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Amendments</u>.</p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the satisfaction of the terms and

conditions set forth in Section 7 hereof, the Borrowers and the Lender agree

that the Credit Agreement is hereby amended, effective as of the date hereof,

as follows:</font></p>



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d1.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)<i><font style="font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Amendments

to Section 1.1 of the Credit Agreement.&#160;

</font></i>Section 1.1 of the Credit Agreement is hereby amended as

follows:</font></p>



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



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The definition of <i><font style="font-style:italic;">&#147;Borrowing

Base&#148;</font></i> set forth in Section 1.1 of the Credit Agreement is hereby

amended by replacing clause (c) in the definition of &#147;<i><font style="font-style:italic;">Borrowing Base&#148;</font></i> in its

entirety with the following new clause (c):</font></p>



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



<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;(c)&#160; the lesser of:</font></p>



<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>70%

of the aggregate of (x) Billed Restricted Product Line Accounts and (y)

Unbilled Restricted Product Line Accounts, and</p>



<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>$<font style="color:windowtext;font-weight:bold;letter-spacing:0pt;text-decoration:none;"><b><font color="black" style="font-weight:normal;">5,500,000,</font></b></font>

<u>minus</u>&#148;</p>



<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The definition of <i><font style="font-style:italic;">&#147;Change of

Control&#148;</font></i> set forth in Section 1.1 of the Credit Agreement is hereby

amended by replacing clause (e) in the definition of &#147;<i><font style="font-style:italic;">Change of Control&#148;</font></i> in its

entirety with the following new clause (e):</font></p>



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



<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;(e) any two of (i) George Watts, (ii) Steven Purcell or (iii) Vic

Fricas shall for any reason cease to serve in their present capacities as

officers of ARC, and ARC shall fail, within ninety (90) days of the date that

the last of any two such Persons cease to serve in such capacities, to retain a

replacement for at least one of such persons who has comparable industry

experience.&#148;</font></p>



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



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The following new defined term <i><font style="font-style:italic;">&#147;Fixed

Charges&#148;</font></i> shall be added to Section 1.1 of the Credit Agreement

immediately preceding the definition of <i><font style="font-style:italic;">&#147;Fixed Charge Coverage Ratio&#148;</font></i>:</font></p>



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



<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;&#145;<u>Fixed Charges</u>&#146;

means, for any period, the sum for the Borrowers and all Subsidiaries

(determined on a consolidated basis without duplication in accordance with

GAAP), of (i) the aggregate amount of Interest Expense for such period

(excluding, for the purpose of computing Fixed Charges, that certain amendment

fee required to be paid by the Borrowers to the Lender in connection with that

certain First Amendment to Credit Agreement and Waiver dated as of August 7,

2002 among the Borrowers and the Lender) <u>plus</u> (ii) the aggregate amount

of regularly scheduled payments of principal in respect of Indebtedness for

borrowed money (including the principal component of any payments in respect of

Capital Lease Obligations) paid or required to be paid during such period, <u>plus</u>

(c) the aggregate amount of cash disbursements made by the Borrowers after June

30, 2002, pursuant to that certain severance agreement between ARC and its

former Chief Executive Officer.&#148;</font></p>



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



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

definition of <i><font style="font-style:italic;">&#147;Fixed Charge Coverage Ratio&#148;</font></i> set forth in Section 1.1 of

the Credit Agreement is hereby amended and restated in its entirety to read as

follows:</font></p>



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



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;&#145;<u>Fixed Charge

Coverage Ratio</u>&#146; means, for any period, the ratio of (a) (i) EBITDA of the

Borrowers and all Subsidiaries for such period (determined on a consolidated

basis without duplication in accordance with GAAP) <u>minus</u> (ii) the

aggregate amount of all Non-Financed Capital Expenditures during such period <u>minus</u>

(iii) the aggregate amount paid, or required to be paid (without duplication),

in cash in respect of the current portion of all income taxes for such period <u>minus</u>

(iv) the aggregate amount of dividends and distributions permitted to be paid

under Section 8.6 and actually paid in cash during such period to (b) the

aggregate amount of Fixed Charges for such period.&#148;</font></p>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d1.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The definition of <i><font style="font-style:italic;">&#147;Revolving

Credit Commitment&#148;</font></i> set forth in Section 1.1 of the Credit Agreement

is hereby amended by deleting the amount &#147;$30,000,000&#148; contained therein, and

replacing it with the amount &#147;$28,000,000&#148;.</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Amendment to Section 7.1 of the Credit Agreement</font></i>.&#160; Section 7.1 of the Credit Agreement is

hereby amended by: (i) deleting the term &#147;and&#148; at the end of subsection (h)

thereof, (ii) deleting the period at the end of subsection (i) thereof and

replacing it with a semi-colon, and (iii) adding the following to the end

thereof as a new subsection (j):</font></p>



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



<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; not later than 2:00 p.m. (Boston time)

on each Business Day, a Collateral Update Certificate.&#148;</font></p>



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



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Amendment to Section 8.10 of the Credit Agreement</font></i>.&#160; Section 8.10 of the Credit Agreement is

hereby amended and restated in its entirety to read as follows:</font></p>



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



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;8.10</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font style="font-weight:bold;">Certain Financial Covenants</font></b>.</p>



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



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Tangible Capital Base</u>.&#160; ARC and its Subsidiaries shall not (i) as of

June&nbsp;30, 2002, have a consolidated Tangible Capital Base of less than

$8,000,000 or (ii)&nbsp;as of the end of any fiscal quarter commencing with the

fiscal quarter ending September 30, 2002, have a consolidated Tangible Capital

Base of less than the sum of (x) $8,000,000 <u>plus</u> (y) on a cumulative

basis, 50% of positive consolidated net income (without reduction for losses)

for each fiscal quarter ending after June 30, 2002.</font></p>



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



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fixed Charge Coverage Ratio</u>.&#160; The Fixed Charge Coverage Ratio of ARC and

its Subsidiaries shall not at any time during any period set forth below to be less

than the ratio set opposite such period:</font></p>



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



<table border="0" cellspacing="0" cellpadding="0" width="60%" style="border-collapse:collapse;margin-left:1.0in;width:60.0%;">

 <tr>

  <td width="61%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Period</font></b></p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Minimum Fixed Charge<br>

  Coverage Ratio</font></b></p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">

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

  </td>

  <td width="32%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through December 31, 2002</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.00x</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">

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

  </td>

  <td width="32%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through

  March 31, 2003</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.00x</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">

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

  </td>

  <td width="32%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through

  June 30, 2003</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.00x</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">

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

  </td>

  <td width="32%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through

  September 30, 2003</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.00x</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">

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

  </td>

  <td width="32%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.16%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thereafter (on a

  rolling four quarters basis)</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:32.32%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.00x</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.44%;">

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

  </td>

 </tr>

</table>



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



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





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



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d1.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



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



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fixed Charge Coverage Shortfall</u>.&#160; The amount by which (i) the aggregate Fixed

Charges of ARC and its Subsidiaries, exceeds (ii) the consolidated EBITDA of

ARC and its Subsidiaries, for each fiscal <font style="color:windowtext;font-weight:bold;letter-spacing:0pt;text-decoration:none;"><b><font color="black" style="font-weight:normal;">period</font></b></font><b><font style="font-weight:bold;">  </font></b>set forth below shall not be greater than

the maximum shortfall amount set opposite such fiscal <font style="color:windowtext;font-weight:bold;letter-spacing:0pt;text-decoration:none;"><b><font color="black" style="font-weight:normal;">period</font></b></font><b><font style="font-weight:bold;">:</font></b></font></p>



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



<table border="0" cellspacing="0" cellpadding="0" width="55%" style="border-collapse:collapse;margin-left:1.5in;width:55.0%;">

 <tr>

  <td width="61%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:61.72%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Fiscal Period</font></b></p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="31%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:31.78%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Maximum

  Shortfall<br>

  Amount</font></b></p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:61.72%;">

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

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.5%;">

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

  </td>

  <td width="31%" colspan="2" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:31.78%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.72%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1 through

  July 31, 2002</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>

  </td>

  <td width="29%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:29.4%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">250,000</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in .7pt 0in .7pt;width:61.72%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.5%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="31%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:31.78%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.72%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1 through

  August 31, 2002</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>

  </td>

  <td width="29%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:29.4%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">150,000</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" style="padding:0in .7pt 0in .7pt;width:61.72%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.5%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="31%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:31.78%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:61.72%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1 through

  September 30, 2002</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>

  </td>

  <td width="29%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:29.42%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">250,000</font></p>

  </td>

  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Capital Expenditures</u>.&#160; The Credit Parties shall not make any

Capital Expenditures (including, without limitation, incurring any Capital

Lease Obligations) which, in the aggregate exceed (i) $600,000 at any time

during the fiscal quarter ending March&nbsp;31, 2002, and (ii) $2,500,000 at

any time during any fiscal year, commencing with the fiscal year ending

December&nbsp;31, 2002.&#148;</font></p>



<p style="margin:0in .5in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Amendment of

Exhibit D to the Credit Agreement</font></i>.&#160;

Exhibit D to the Credit Agreement is hereby replaced with the new form

of Exhibit D attached thereto.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No

Default; Representations and Warranties, etc</u>.</p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Borrowers hereby

represent, warrant and confirm that: (a) the representations and warranties of

the Credit Parties contained in Article 5 of the Credit Agreement are true and

correct on and as of the date hereof as if made on such date (except to the extent

that such representations and warranties expressly relate to an earlier date);

(b) after giving effect to this Amendment, the Borrowers are in compliance with

all of the terms and provisions set forth in the Credit Agreement and the other

Loan Documents; (c) after giving effect to this Amendment, no Default has

occurred and is continuing; and (d)&nbsp;the execution, delivery and

performance by the Borrowers of this Amendment (i) have been duly authorized by

all necessary action on the part of the Borrowers, (ii) will not violate any

applicable law or regulation or the organizational documents of any Borrower,

(iii) will not violate or result in a default under any indenture, agreement or

other instrument binding on any Borrower or any of its assets, including without

limitation, any Subordinated Debt Document, and (iv) do not require any

consent, waiver or approval of or by any Person (other than the Lender) which

has not been obtained.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conditions

to Effectiveness</u>.</p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The

effectiveness of this Amendment shall be subject to the satisfaction of the

following conditions precedent:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Lender shall have received

counterparts of this Amendment duly executed by each of the Borrowers;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Lender shall have received a

Certificate of the Secretary of ARC, certifying that this Amendment has been

duly authorized by the Boards of Directors of ARC and each of its Subsidiaries;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d1.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Borrowers shall have delivered to

the Lender evidence that Wynnchurch has executed and delivered to the Borrowers

a written amendment and waiver with respect to the Subordinated Debt Documents

in form and substance reasonably acceptable to the Lender, pursuant to which

Wynnchurch shall have waived all existing defaults of the Borrowers under the

Subordinated Debt Documents and amended the financial covenant provisions of

the Subordinated Debt Documents in a manner consistent with the financial

covenant amendments set forth in this Amendment;</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Lender shall have received a written

acknowledgement from Wynnchurch with respect to the existence of the June 30,

2002 Event of Default and the modifications to the Credit Agreement

contemplated by this Amendment;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Borrowers shall have reimbursed

the Lender for all reasonable costs and expenses, including reasonable legal

fees and disbursements, incurred by the Lender in connection with this

Amendment and the transactions contemplated hereby; and</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Lender shall have received from

the Borrowers, an amendment fee in an amount equal to $50,000.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Miscellaneous</u>.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as specifically amended

hereby, all of the terms and provisions of the Credit Agreement, the other Loan

Documents and all related documents, shall remain in full force and

effect.&#160; Nothing contained herein shall

constitute a waiver of any provision of the Credit Agreement or the Other Loan

Documents, except for the waiver of the June 30, 2002 Event of Default

expressly set forth herein.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Amendment may be executed in any

number of counterparts, each of which, when executed and delivered, shall be an

original, but all counterparts shall together constitute one instrument.&#160; Delivery of an executed signature page

hereto by facsimile transmission shall be effective as delivery of a manually

executed counterpart hereof.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Amendment shall be governed by

the laws of The Commonwealth of Massachusetts and shall be binding upon and

inure to the benefit of the parties hereto and their respective successors and

assigns.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Remainder of Page Left Intentionally Blank]</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d1.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be

duly executed by their respective authorized officers as of the day and year

first above written.</font></p>



<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<div align="center">



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt 6.5in;text-indent:-6.5in;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt 6.5in;text-indent:-6.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">BORROWERS</font></u></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 6.5in;text-indent:-6.5in;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 6.5in;text-indent:-6.5in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALTERNATIVE

  RESOURCES CORPORATION</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARC SERVICE,

  INC.</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARC SOLUTIONS,

  INC.</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARC MIDHOLDING,

  INC.</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WRITERS

  INC.</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

</table>



</div>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d1.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<div align="center">



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">LENDER</font></u></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FLEET

  CAPITAL CORPORATION, as Lender</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ISSUING

  LENDER</font></u></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FLEET

  NATIONAL BANK, as Issuing Lender</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">CASH

  MANAGEMENT BANK</font></u></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FLEET

  NATIONAL BANK, as Cash Management Bank</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:31.42%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.62%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.4%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:40.6%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

 </tr>

</table>



</div>



<p style="margin:0in 0in .0001pt 2.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>5
<FILENAME>j4412_ex4d2.htm
<DESCRIPTION>EX-4.2
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body link="blue" vlink="purple">



<div style="font-family:'Times New Roman';">



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT 4.2</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FIRST AMENDMENT TO SECURITIES

PURCHASE AGREEMENT AND WAIVER</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENT

AND WAIVER dated as of August 7, 2002 (this &#147;<u>Amendment</u>&#148;), among

Alternative Resources Corporation, a Delaware corporation&#160; (the &#147;<u>Company</u>&#148;), with headquarters

located at 600 Hart Road, Suite 300, Barrington, Illinois 60010,&#160; Wynnchurch Capital Partners, L.P., a

Delaware limited partnership and Wynnchurch Capital Partners Canada, L.P., an

Alberta, Canada limited partnership (each a &#147;<u>Purchaser</u>,&#148; and

collectively, the &#147;<u>Purchasers</u>&#148;), amends the Securities Purchase

Agreement dated as of January 31, 2002 (the &#147;<u>Securities Purchase Agreement</u>&#148;),

between the Company and the Purchasers.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Company failed to satisfy the Fixed

Charge Coverage Ratio set forth in Section 7.5(h)(ii) of the Securities

Purchase Agreement for the period of two fiscal quarters ended June 30, 2002

and such failure constitutes an Event of Default under the Section 5.2 of the

Notes (the &#147;<u>June 30, 2002 Event of Default</u>&#148;);</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Company and Fleet Capital Corporation, as

Lender pursuant to that certain Credit and Security Agreement dated as of

January 31, 2002 (the &#147;<u>Credit Agreement</u>&#148;) have requested that the

Purchasers waive the June 30, 2002 Event of Default&#160; and any other existing defaults by the Company as provided

herein, and amend certain provisions of the Securities Purchase Agreement; and</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Purchasers has agreed to waive the June

30, 2002 Event of Default and any other existing defaults under the Securities

Purchase Agreement and to amend certain provisions of the Securities Purchase

Agreement, all subject to the terms, conditions and limitations set forth

herein;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the foregoing and

the agreements contained herein, the parties hereby agree as follows:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Capitalized Terms</u>.</p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capitalized terms used herein which are defined in the

Securities Purchase Agreement have the same meanings herein as therein, except

to the extent that such meanings are amended hereby.&#160; The Securities Purchase Agreement, together with the Notes, the

Warrants, the Subordination Agreement and any other related documents are

referred to herein as the &#147;<u>Subordinated Debt Documents</u>.&#148;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Waiver of June 30,

2002 Event of Default.</u></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the satisfaction of the terms and

conditions set forth in Section 5 hereof, the Purchasers hereby waive the June

30, 2002 Event of Default and any other existing defaults by the Company

pursuant to the Securities Purchase Agreement and the other Subordinated Debt

Documents.&#160; The parties agree that

nothing herein shall be construed as a waiver of any future Event of Default

(including without limitation, any Event of Default caused by reason of the

failure of the Company to comply with Section 7.5(h) of the Securities Purchase

Agreement, as amended hereby, on any other occasion or for any other period).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Amendments</u>.</p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the satisfaction of the terms and

conditions set forth in Section 5 hereof, the Company and the Purchasers agree

that the Securities Purchase Agreement is hereby amended, effective as of the

date hereof, as follows:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d2.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)<i><font style="font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Amendments

to Section 7.2 of the Securities Purchase Agreement.&#160; </font></i>Section 7.2(j) of the Securities Purchase Agreement is

hereby amended as follows:</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

following new defined term <i><font style="font-style:italic;">&#147;Fixed Charges&#148;</font></i> shall be added to Section

7.2 of the Securities Purchase Agreement immediately preceding the definition

of <i><font style="font-style:italic;">&#147;Fixed

Charge Coverage Ratio&#148;</font></i>:</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in .5in .0001pt 1.0in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;(j1)&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#145;<u>Fixed Charges</u>&#146;

means, for any period, the sum for the Company and all subsidiaries (determined

on a consolidated basis without duplication in accordance with GAAP), of (i)

the aggregate amount of Interest Expense for such period (excluding, for the

purpose of computing Fixed Charges, that certain amendment fee required to be paid

by the Company and its subsidiaries to the Lender in connection with that

certain First Amendment to Credit Agreement and Waiver dated as of August 7,

2002 among the Company and its subsidiaries and the Lender) <u>plus</u> (ii)

the aggregate amount of regularly scheduled payments of principal in respect of

Indebtedness for borrowed money (including the principal component of any

payments in respect of Capital Lease Obligations) paid or required to be paid

during such period, <u>plus</u> (c) the aggregate amount of cash disbursements

made by the Company after June 30, 2002, pursuant to that certain severance

agreement between the Company and its former Chief Executive Officer.&#148;</font></p>



<p align="left" style="margin:0in 0in .0001pt 76.5pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

definition of <i><font style="font-style:italic;">&#147;Fixed Charge Coverage Ratio&#148;</font></i> set forth in Section 7.2 of

the Securities Purchase Agreement is hereby amended and restated in its

entirety to read as follows:</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;(j2)&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#145;<u>Fixed Charge Coverage Ratio</u>&#146;

means, for any period, the ratio of (a) (i) EBITDA of the Borrowers (as defined

in the Credit Agreement) and all subsidiaries for such period (determined on a

consolidated basis without duplication in accordance with GAAP) <u>minus</u>

(ii) the aggregate amount of all Non-Financed Capital Expenditures during such

period <u>minus</u> (iii) the aggregate amount paid, or required to be paid

(without duplication), in cash in respect of the current portion of all income

taxes for such period <u>minus</u> (iv) the aggregate amount of dividends and

distributions permitted to be paid under Section 8.6 of the Credit Agreement

and actually paid in cash during such period to (b) the aggregate amount of

Fixed Charges for such period.&#148;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Amendment to

Section 7.5(h) of the Securities Purchase Agreement</font></i>.&#160; Section 7.5(h) of the Securities Purchase

Agreement is hereby amended and restated in its entirety to read as follows:</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Certain

Financial Covenants</u>.</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Tangible Capital Base</font></i>.&#160; The Company shall not (i) as of

June&nbsp;30, 2002, have a consolidated Tangible Capital Base of less than

$7,600,000 or (ii)&nbsp;as of the end of any fiscal quarter commencing with the

fiscal quarter ending September 30, 2002, have a consolidated Tangible Capital

Base of less than the sum of (x) $7,600,000 <u>plus</u> (y) on a cumulative

basis, 45% of positive consolidated net income (without reduction for losses)

for each fiscal quarter ending after June 30, 2002.</font></p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d2.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Fixed Charge Coverage Ratio</font></i>.&#160; The Fixed Charge Coverage Ratio of the

Company shall not at any time during any period set forth below to be less than

the ratio set opposite such period:</font></p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="70%" style="border-collapse:collapse;margin-left:1.0in;width:70.06%;">

 <tr>

  <td width="73%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Period</font></b></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Minimum Fixed Charge<br>

  Coverage Ratio</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through December 31, 2002</font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">.95x</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="bottom" style="padding:0in 0in 0in 0in;width:73.48%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" style="padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through

  March 31, 2003</font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">.95x</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.64%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" style="padding:0in 0in 0in 0in;width:73.48%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" style="padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through

  June 30, 2003</font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">.95x</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.64%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" style="padding:0in 0in 0in 0in;width:73.48%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" style="padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 1, 2002 through

  September 30, 2003</font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">.95x</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.64%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" style="padding:0in 0in 0in 0in;width:73.48%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" style="padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.64%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="73%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:73.48%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thereafter (on a

  rolling four quarters basis)</font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.14%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:23.74%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">.95x</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.64%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Fixed Charge

Coverage Shortfall</font></i>.&#160; The

amount by which (i) the aggregate Fixed Charges of the Company and its

subsidiaries, exceeds (ii) the consolidated EBITDA of the Company its

subsidiaries, for each fiscal period set forth below shall not be greater than

the maximum shortfall amount set opposite such fiscal period:</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="70%" style="border-collapse:collapse;margin-left:1.0in;width:70.02%;">

 <tr>

  <td width="74%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:74.84%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Fiscal

  Period</font></b></p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="22%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:22.72%;">

  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Maximum Shortfall<br>

  Amount</font></b></p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.94%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:74.84%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="21%" valign="bottom" style="border:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:21.3%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.94%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.84%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1 through July 31, 2002</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.4%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>

  </td>

  <td width="21%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.3%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">262,500</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.94%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="bottom" style="padding:0in 0in 0in 0in;width:74.84%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="21%" valign="bottom" style="padding:0in 0in 0in 0in;width:21.3%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.94%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.84%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1 through August

  31, 2002</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.4%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>

  </td>

  <td width="21%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.3%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">157,500</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.94%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.84%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.4%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="21%" valign="bottom" style="padding:0in 0in 0in 0in;width:21.3%;">

  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.94%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="74%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:74.84%;">

  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1 through

  September 30, 2002</font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.5%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.4%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>

  </td>

  <td width="21%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.3%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">262,500</font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:.94%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#148;</font></p>

  </td>

 </tr>

</table>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No

Default; Representations and Warranties, etc</u>.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company hereby represents, warrants and confirms

that: (a) the representations and warranties of the Company contained in

Article 3 of the Securities Purchase Agreement are true and correct on and as

of the date hereof as if made on such date (except to the extent that such

representations and warranties expressly relate to an earlier date); (b) after

giving effect to this Amendment, the Company is in compliance with all of the

terms and provisions set forth in the Securities Purchase Agreement and the

other Subordinated Debt Documents; (c) after giving effect to this Amendment,

no Event of Default (as defined in the Notes) has occurred and is continuing;

and (d)&nbsp;the execution, delivery and performance by the Company of this

Amendment (i) have been duly authorized by all necessary action on the part of

the Company, (ii) will not violate any applicable law or regulation or the

organizational documents of the Company or any of its subsidiaries, (iii) will

not violate or result in a default under any indenture, agreement or other

instrument binding on the Company or any of its assets, including without

limitation, the Credit Agreement or any other Loan Document (as defined in the

Credit Agreement), and (iv) do not</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d2.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">require

any consent, waiver or approval of or by any person (other than the Purchasers)

which has not been obtained.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conditions

to Effectiveness</u>.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The

effectiveness of this Amendment shall be subject to the satisfaction of the

following conditions precedent:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Purchasers shall have received

counterparts of this Amendment duly executed by the Company;</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Purchasers shall have received a

Certificate of the Secretary of the Company, certifying that this Amendment has

been duly authorized by the Boards of Directors of the Company;</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall have delivered to

the Purchasers evidence that Lender has executed and delivered to the Company a

written amendment and waiver with respect to the Loan Documents (as defined in

the Credit Agreement, in form and substance reasonably acceptable to the

Purchasers; and</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall have reimbursed the

Purchasers for all reasonable costs and expenses, including reasonable legal

fees and disbursements, incurred by the Purchasers in connection with this

Amendment and the issuance by Purchasers of that certain Warrant to Robert

Stanojev dated August 5, 2002 and the transactions contemplated hereby.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Miscellaneous</u>.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as specifically amended

hereby, all of the terms and provisions of the Securities Purchase Agreement,

the other Subordinated Debt Documents and all related documents, shall remain in

full force and effect.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Amendment may be executed in any

number of counterparts, each of which, when executed and delivered, shall be an

original, but all counterparts shall together constitute one instrument.&#160; Delivery of an executed signature page

hereto by facsimile transmission shall be effective as delivery of a manually

executed counterpart hereof.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Amendment shall be governed by

the laws of the State of Illinois and shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and assigns.</font></p>



<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Remainder of Page Left Intentionally Blank]</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex4d2.htm',USER='chendri',CD='Aug 14 08:40 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have caused

this Amendment to be duly executed by their respective authorized officers as

of the day and year first above written.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPANY:</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALTERNATIVE

  RESOURCES CORPORATION</font></p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="300" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:225.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.0pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

  <td width="260" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:195.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="33" valign="top" style="padding:0in 0in 0in 0in;width:25.0pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="267" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:200.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p align="left" style="font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PURCHASERS:</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WYNNCHURCH

  CAPITAL PARTNERS, L.P.</font></p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Wynnchurch

  Management Inc., its general partner</font></p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="300" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:225.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.0pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

  <td width="260" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:195.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="33" valign="top" style="padding:0in 0in 0in 0in;width:25.0pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="267" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:200.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p align="left" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="721" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:540.8pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WYNNCHURCH

  CAPITAL PARTNERS CANADA, L.P.</font></p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Wynnchurch GP

  Canada, Inc., its general partner</font></p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="687" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:515.4pt;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="300" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:225.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.0pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

  <td width="260" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in 0in 0in 0in;width:195.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="34" valign="top" style="padding:0in 0in 0in 0in;width:25.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="33" valign="top" style="padding:0in 0in 0in 0in;width:25.0pt;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="267" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:200.0pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="387" valign="top" style="padding:0in 0in 0in 0in;width:290.4pt;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="0">

  <td width="34" style="border:none;"></td>

  <td width="33" style="border:none;"></td>

  <td width="7" style="border:none;"></td>

  <td width="260" style="border:none;"></td>

  <td width="387" style="border:none;"></td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>6
<FILENAME>j4412_ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body>



<div style="font-family:'Times New Roman';">



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT

10.1</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EMPLOYMENT

AGREEMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This EMPLOYMENT

AGREEMENT (&#147;Agreement&#148;) made effective as of July 1, 2002 by and between

Alternative Resources Corporation, and its successors and assigns, (the

&#147;Company&#148;) and George W. Watts (the &#147;Executive&#148;).</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration

of the mutual covenants contained in this Agreement, the parties hereby agree

as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

I</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EMPLOYMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company agrees

to employ the Executive, and the Executive agrees to be employed by the Company

for the Period of Employment as provided in Section III A. below upon the terms

and conditions provided in the Agreement.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

II</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">POSITION

AND RESPONSIBILITIES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Period

of Employment, the Executive agrees to serve as President and Chief Executive

Officer of&#160; the Company in accordance

with the By-laws and at the request of the Company&#146;s Board of Directors, as a

director of the Company and&#160; as a

director and officer of such subsidiaries of the Company as the Company&#146;s Board

may designate, to be the principal Company officer responsible to implement

Board decisions, rules directives and procedures, and to assume both the

management responsibilities expected of an officer holding such positions in

accordance with the By-laws and such other responsibilities consistent with

such positions as may be assigned to the Executive from time to time by the

Company&#146;s Board of Directors; provided that in all cases Executive shall be

subject to the direction , control, rules and procedures imposed by the Board

of Directors.&#160; Executive acknowledges

that in exercise of the Board&#146;s right of direction and control, the Board may

designate any committee of directors or any single director, acting on behalf

of the whole Board, to communicate with Executive between meetings of the

Board.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

III</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TERMS

AND DUTIES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Period of Employment</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The term of

Executive&#146;s employment under this Agreement will commence as of the effective

date hereof, and shall continue for an initial term of through June 30, 2004

and continue</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">year to year

thereafter,&#160; subject, however, to

termination at any time as provided in this Agreement (the &#147;Period of

Employment&#148;).</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Duties</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<h2 align="left" style="font-weight:normal;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Period of Employment, the Executive shall devote all of his

business time, attention and skill to the business and affairs of the Company

and its subsidiaries and not engage in any other activities (whether or not for

gain, profit or other pecuniary advantage), except as provided below with the

Company&#146;s consent..&#160; Executive shall

perform faithfully the duties assigned to him hereunder to the best of his&#160; abilities and agrees to carry out the duties

of his position and offices in the best interests of the Company.&#160; Executive covenants, warrants and represents

that he shall:&#160; (i) devote his full and

best efforts to the fulfillment of his employment obligation; (ii) exercise the

highest ethical standards, the highest degree of loyalty, and the highest

standards of conduct in the performance of his duties; and (iii) do

nothing&#160; which he knows or should know

will harm or could harm the business or reputation of the Company.&#160; Executive shall at all times abide by all

policies and procedures of the Company as in effect or amended from time to

time in the sole discretion of such entity, Executive may (i) participate in

the affairs of any governmental, educational or other charitable institution,

or engage in professional speaking and writing activities, so long as the Board

of Directors of the Company does not determine, in good faith, that such

activities unreasonably interfere with the business of the Company or diminish

the Executive&#146;s obligations under the Agreement; or (ii) serve as a member of

the board of directors of other corporations, so long as the Board of Directors

of the Company, specifically approves such service in its sole and absolute

discretion, and in either case, the Executive shall be entitled to retain all

fees, royalties and other compensation derived from such activities in addition

to the compensation and other benefits payable to him under the Agreement; and

provided further, that the Executive may invest his personal or family funds in

any form or manner he may choose that will not require any services on his part

in the operation of or the affairs of the companies in which such investments

are made.</font></h2>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

IV</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPENSATION

AND BENEFITS</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Base Salary</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Period

of Employment, the Company agrees to pay the Executive a base salary at the

annual rate (&#147;Base Salary&#148;) of Two Hundred Seventy- Five Thousand Dollars

($275,000). Such Base Salary shall be payable according to the customary

payroll practices of the Company, but in no event less frequently than

bi-weekly installments.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Annual Incentive Awards</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the 2002

calendar year, the Executive shall be eligible to earn incentive compensation

of up to 100% of his pro-rated Base Salary, based upon performance targets to

be determined by</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Board.&#160; For subsequent years, the Executive shall be

eligible to earn incentive compensation of up to 100% of his&#160; Base Salary (pro-rated in the case of

partial years), based upon performance targets to be determined by the Board.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Options</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will

take all actions necessary to grant to Executive stock options to purchase

500,000 shares of common stock of the Company with an exercise price equal to

fair market value per share on the date hereof (&#147;FMV Options&#148;) and 500,000

shares of common stock of the Company with an exercise price of $2.50 per

share(&#147;$2.50 Options&#148;), the FMV Options and the $2.50 Options each vesting, so

long as Executive remains employed by the Company on the vesting dates, in four

equal annual installments on the first, second, third and fourth annual

anniversaries of the date hereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding

the foregoing:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if Executive is terminated Without

Cause or resigns for Good Reason prior to July 1, 2003, no options shall vest,

and they shall terminate.&#160; If Executive

is terminated Without Cause or resigns for Good Reason on or after July 1, 2003

but prior to July 1, 2004, 50% of the FMV Options and 50% of the $2.50 Options

(in each case less the number of such options already vested) shall become

fully vested and exercisable for the designated post-termination period

specified in those options; and</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if there is a change in control of

the Company, all of the FMV Options and all of the $2.50 Options shall become

fully vested and shall remain exercisable both during employment and, if

Executive is terminated or resigns on or after the change in control, for the

designated post-termination period specified in those options.&#160; For purposes of this Agreement, a &#147;change in

control&#148; of the Company shall be deemed to occur at the effective time of (i) a

merger or consolidation of the Company with one or more other corporations as a

result of which the holders of the outstanding voting stock of the Company

immediately prior to such merger or consolidation (other than the surviving or

resulting corporation or any affiliate thereof) hold less than 50% of the

voting stock of the surviving or resulting corporation, or (ii) a transfer of

more than 50% (in value) of the assets of the Company other than to a

transferee in which the Company owns at least 50% of the voting stock

immediately prior to the consummation of such transaction.<b><font style="font-weight:bold;">&#160;

</font></b>Solely for the purposes of this definition, the Wynnchurch

Capital entities shall always be deemed to hold the shares into or for which

any convertible securities and warrants held by them are convertible or

exercisable, and such shares shall be deemed outstanding,</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Additional Benefits</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive shall be

entitled to receive a paid vacation of four (4) weeks during each twelve (12)

month period during the Period of Employment, which may be used in accordance

with</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company policy.&#160; The Executive will also be entitled to

participate in all group hospitalization, health, dental care, life or other

insurance, tax qualified pension, savings, thrift and profit sharing plans,

sick leave plans, travel or accident insurance and short and long term

disability insurance plans or programs for which salaried executive employees

generally are eligible under any existing or future plan or program established

by the Company.&#160; Nothing in this

Agreement will preclude the Company from amending or terminating any of the

plans or programs applicable to salaried executive employees of the

Company.&#160; This Agreement is otherwise in

lieu of entitlement to any other generally available benefits, perquisites of

matters of compensation.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Period

of Employment, the Company shall pay Executive&#146;s private life insurance

premiums (not to exceed $1,1440 per annum) and his private disability insurance

premiums (not to exceed $4,653.45 per annum).&#160;

The Company may pay those premiums in installments, if permitted by the

terms of the policies.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

V</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BUSINESS

EXPENSES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will

reimburse the Executive for all reasonable travel and other expenses incurred

by the Executive in connection with the performance of his duties and

responsibilities under this Agreement.&#160;

Executive must support all expenditures with customary receipts and

expense reports subject to review by the Company&#146;s Chief Financial Officer.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

VI</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DISABILITY</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payments</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive&#146;s

employment hereunder may be terminated by the Company if (i) Executive becomes

physically or mentally incapacitated, (ii) is unable for a period of one

hundred eighty (180) consecutive days to perform his material duties and

responsibilities and (iii) a determination is made regarding Executive&#146;s

continued incapacity by a physician appointed by the Company (such continued

incapacity is hereinafter referred to as &#147;disability&#148;).&#160; Upon any such termination for disability,

Executive shall be entitled to receive (i) his Base Salary pro-rated through

the date that he becomes eligible for long term disability; (ii) any earned

annual incentive award, prorated through the date on which the Executive is

first determined to be disabled, payable when such award would normally be

determined to be earned and payable and (iii) his accrued benefits under the

terms of the plans and policies of the Company in which he participates.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Assistance to the Company</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the period

the Executive is receiving payments of either regular compensation, severance

or disability insurance benefits described in this Agreement and as long as he

is physically and mentally able to do so, the Executive will furnish

information and assistance to the Company and from time to time will make himself

available to the Company with respect to areas and matters in which he was

involved during his employment with the Company.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

VII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEATH</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of

the death of the Executive during the Period of Employment, (i) Executive&#146;s

estate shall be entitled to receive his Base Salary, pro-rated through the date

of death&#160; plus any earned annual

incentive award, prorated through the date of death and payable when such award

would normally be determined to be earned and payable and (ii) Executive&#146;s designated

beneficiary or estate, as the case may be, shall be entitled to his accrued

benefits, under the terms of the plans and policies of the Company in which he

participates.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

VIII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EFFECT

OF TERMINATION OF EMPLOYMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination Without

Cause or for Good Reason</u></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall

have the right to terminate Executive&#146;s employment at any time Without Cause,

upon written notice.&#160; Executive shall

have the right to terminate his employment for Good Reason upon written notice.&#160; If the Company terminates Executive&#146;s

employment Without Cause or the Executive terminates such employment for Good

Reason,&#160; then upon execution of a

resignation as director of the Company , execution of a general release in

favor of the Company and its officers, directors employees, agent and attorneys

, and conditional upon both expiration of all statutory revocation periods

without revocation and continued compliance with the post-termination

obligations of this Agreement, Company will pay to the Executive severance at the

then current annual rate of Base Salary for a period of&#160; twelve months, payable in accordance with

normal payroll practices.&#160; Earned but

unpaid Base Salary will be paid in a lump sum at the time of such

termination.&#160; The Company also will pay

the Executive a prorated portion of any earned annual incentive award for the

year in which the termination occurred, payable at the time such award would

normally be determined earned and payable.&#160;

Executive shall be entitled to continue his current group health plan

coverage, at the same cost (subject to generally imposed increases), in

accordance with his current group health plan elections for the term of

severance payments</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination With

Cause</u></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall

have the right to terminate Executive&#146;s employment With Cause upon written

notice. If the Company terminates Executive With Cause, Executive shall deliver

a resignation as director of the Company and shall be entitled to receive

solely his Base Salary prorated through the date of Executive&#146;s termination,

and his accrued benefits (excluding incentive award) under the terms of the

plans, policies and procedures of the Company.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Resignation</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive shall

have the right to voluntarily resign his employment without Good Reason&#160; at any time (including by reason of

retirement) upon two weeks&#146; prior notice to the Company so long as he delivers,

upon request of the Company, a resignation as a Company&#146;s director.&#160; If Executive voluntarily terminates his employment

with the Company other than for Good Reason (which is governed by Paragraph A.

of this Section) at any time, Executive shall be entitled to receive solely his

Base Salary prorated through the date of Executive&#146;s voluntary termination, and

his accrued benefits under the terms of the plans, policies and procedures of

the Company (other than incentive awards).</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For this

Agreement, the following terms have the following meanings:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Termination &#147;With Cause&#148; means

termination of the Executive&#146;s employment by the Company&#146;s Board of Directors

acting in good faith by written notice by the Company to the Executive

specifying the event relied upon for such termination, due to (i) breach of

Executive&#146;s obligation to utilize his best efforts in performance of his duties

or any other material term of this Agreement which is not cured (but only if

the circumstances would permit a cure) to the Board&#146;s satisfaction within ten

business days (or such shorter period as circumstances reasonably require)

following written notice specifying the breach and the cure required (ii) the

Executive&#146;s breach of his fiduciary duties to the Company or his gross

negligence or willful misconduct, including, but not limited to, conviction for

a felony or perpetration of a common law fraud, or&#160; (iii) failure to follow specific directions and orders of the

Board of Directors.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Termination &#147;Without Cause&#148; means

termination by the Company of the Executive&#146;s employment other than due to

death, disability, or termination With Cause.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Termination for &#147;Good Reason&#148; means

termination of the Executive&#146;s employment by the Executive within twelve (12)

months after (i) the Company fails to elect or maintain the Executive as Chief

Executive Officer (ii) the Executive&#146;s duties, responsibilities or authority

under this Agreement are materially reduced or diminished other than pursuant

to the</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Board&#146;s exercise of its

absolute rights of direction and control (iv) the compensation received by the

Executive is reduced in the aggregate (other than as a result of adjustments

applied uniformly to all executive employees), and such reduction is not

remedied within thirty (30) days of the Executive&#146;s notice to the Company

thereof, (v) the Company violates any other material terms of the Agreement

which is not cured within 30 days following written notice to the Company

specifying the violation and the required cure, or (vii) there is a

liquidation, dissolution, consolidation or merger of the Company or transfer of

all or a significant portion of its assets unless a successor or successors (by

merger, consolidation or otherwise) to which all or a significant portion of

its business and assets have been transferred shall have assumed all duties and

obligations of the Company under this Agreement.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

IX</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OTHER

DUTIES OF THE EXECUTIVE DURING</font></u></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AND

AFTER THE PERIOD OF EMPLOYMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Cooperation During and After

Employment</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Executive

will, with reasonable notice during or after the Period of Employment, furnish

information as may be in his possession and cooperate with the Company as may

reasonably be requested in connection with any claims or legal actions in which

the Company is or may become a party.&#160;

During any severance period, Executive agrees to be reasonably available

to assist in transition.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Confidential Information</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Executive

recognizes and acknowledges that all information pertaining to the affairs,

business, clients, customers or other relationships of the Company, as hereinafter

defined, is confidential and is a unique and valuable asset of the

Company.&#160; Access to and knowledge of

this information are essential to the performance of the Executive&#146;s duties

under this Agreement.&#160; The Executive

will not during the Period of Employment or after, except to the extent

reasonably necessary in performance of the duties under this Agreement, give to

any person, firm, association, corporation or governmental agency any

information concerning the affairs, business, clients, customers or other

relationships of the Company, except as required by law.&#160; The Executive will not make use of this type

of information for his own purposes or for the benefit of any person or

organization other than the Company.&#160;

The Executive will also use his best efforts to prevent the disclosure

of this information by others.&#160; All

records, memoranda, etc., relating to the business of the Company, whether made

by the Executive or otherwise coming into his possession, are confidential and

will remain the property of the Company.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='7',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Certain Restricted Activities</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Period

of Employment and for a one (1) year period thereafter, the Executive will not

use his status with the Company to obtain goods or services from another

organization other than in the ordinary course of business.&#160; During the Period of Employment and for a

one (1) year period following termination of the Period of Employment:&#160; the Executive will not make any statements

or perform any acts intended to advance the interest of any existing or

prospective competitors of the Company or its subsidiaries in any way that will

injure the interest of the Company or its subsidiaries; the Executive, without

prior express written approval by the Board of Directors of the Company, will

not directly or indirectly own or hold any proprietary interest in or be

employed by or receive compensation from any party engaged in the same or any

similar business in the same geographic areas the Company or its subsidiaries

do business; and the Executive, without express prior written approval from the

Board of Directors, will not solicit any members of the then current customers,

clients or suppliers of the Company or its subsidiaries or discuss with any

employee of the Company or its subsidiaries information or operation of any

business intended to compete with the Company or its subsidiaries.&#160; For the purposes of the Agreement,

proprietary interest means legal or equitable ownership, whether through stock

holdings or otherwise, of a debt or equity interest (including options,

warrants, rights and convertible interest) in a business firm or entity, or

ownership of more than 2% of any class of equity interest in a publicly-held

company.&#160; The Executive acknowledges

that the covenants contained herein are reasonable as to geographic and

temporal scope.&#160; For a twelve (12) month

period after termination of the Period of Employment for any reason, the

Executive will not hire any employee of the Company or its subsidiaries or solicit,

other than by means of a general solicitation to the public such as a newspaper

advertisement, or encourage any such employee to leave the employ of the

Company or its subsidiaries.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Remedies</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Executive

acknowledges that his breach or threatened or attempted breach of any provision

of Section IX would cause irreparable harm to the Company not compensable in

monetary damages and that the Company shall be entitled, in addition to all

other applicable remedies, to a temporary and permanent injunction and a decree

for specific performance of the terms of Section IX without being required to

prove damages or furnish any bond or other security.&#160; The Executive hereby acknowledges the necessity of protection against

the competition of, and certain other possible adverse actions by, the

Executive and that the nature and scope of such protection has been carefully

considered by the parties.&#160; The period

provided and the area covered are expressly represented and agreed to be fair,

reasonable and necessary.&#160; If, however,

any court or arbitrator determines that the restrictions described herein are

not reasonable, the court or arbitration panel may modify, rewrite or interpret

such restrictions to include as much of their nature and scope as will render

them enforceable.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='8',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

X</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INDEMNIFICATION,

LITIGATION</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to

such bylaw provisions as may from time to time be in effect, the Company will

execute with Executive the current form of Indemnification Agreement granted to

directors.&#160; The foregoing

indemnification shall continue to apply following termination of the Period of

Employment for actions or omissions during the Period of Employment.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XI</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WITHHOLDING

TAXES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company may

directly or indirectly withhold from any payments under this Agreement all

federal, state, city or other taxes that shall be required pursuant to any law

or governmental regulation.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EFFECT

OF PRIOR AGREEMENTS</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement

contains the entire understanding between the Company and the Executive with

respect to the subject matter and supersedes any prior employment, or

consulting agreements&#160; or letters of

understanding between the Company, its predecessors and its affiliates, and the

Executive.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XIII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MODIFICATION</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may

not be modified or amended except in writing signed by the parties.&#160; No term or condition of this Agreement will

be deemed to have been waived, except in writing by the party charged with

waiver.&#160; A waiver shall operate only as

to the specific term or condition waived and will not constitute a waiver for

the future or act on anything other than that which is specifically waived.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XIV</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GOVERNING

LAW; ARBITRATION</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement and

its validity, interpretation, performance and enforcement shall be governed by

the laws of the State of Illinois, without giving effect to the choice of law

provisions thereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<h3 align="left" style="font-weight:normal;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event there should be any controversy or dispute arising with

respect to this Employment Agreement between the Executive and the Company, the

parties agree properly and in good faith to attempt to settle such dispute

amicably.&#160; In the event that the parties

are unable to do so, any such controversy or dispute shall be settled by

arbitration held in Chicago, Illinois in accordance with the rules of the

American Arbitration Association for the resolution of Employment Disputes then

in effect, except as otherwise provided herein.&#160; Any and all awards rendered by the arbitration shall be final and</font></h3>



<h3 align="left" style="font-weight:normal;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='9',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<h3 align="left" style="font-weight:normal;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">binding upon the

parties.&#160; In no event may an arbitrator

allow any party to join claims of any other employee in a single arbitration

proceeding without both parties&#146; written consent.&#160; Executive and the Company agree that, without regard to the

amount at stake, all claims submitted to arbitration shall be decided by a

single arbitrator.&#160; Executive and the

Company further acknowledge and agree that any dispute or claim arising under

the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of

1964 as amended by the Civil Rights Act of 1991, the Americans With

Disabilities Act, the Employee Retirement Income Security Act of 1974, Illinois

Human Rights Act, the Cook County and Chicago Human Rights Ordinances, and any

other federal, state or local statute or ordinance, rule and/or regulation,

public policy or tort law (regardless of whether statutory or common law

origin), shall be subject to, and must be resolved by, arbitration as provided

in this Section. &#160;&#160;Judgment may be

entered on the arbitrator&#146;s award in any court of competent jurisdiction.</font></h3>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XV</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOTICES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices,

requests, consents and other communications hereunder shall be in writing and

shall be deemed to have been made when delivered or mailed first-class postage

prepaid by registered mail, return receipt requested, or when delivered if by

hand, overnight delivery services or confirmed facsimile transmission, to the

following:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If to the Company, at:</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alternative

Resources Corporation</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">600 Hart Road, Suite 300, Barrington,</font></b></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Illinois&#160; 60010</font></b></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:

Chairman</font></p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or at such other address

as may have been furnished to the Executive by the Company in writing, or</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If to the Executive, at

the address he has furnished to the Company in writing.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XVI</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BINDING

AGREEMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement

shall be binding on the parties&#146; successors, heirs and assigns.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='10',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d1.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

XVII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MISCELLANEOUS</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Multiple Counterparts</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may

be executed simultaneously in multiple counterparts each of the same force and

effect.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any phrase,

clause or provision of this Agreement is declared invalid or unenforceable by

an arbitrator or court of competent jurisdiction, such phrase, clause or

provision shall be deemed severed from this Agreement, but will not affect any

other provisions of this Agreement, which shall otherwise remain in full force

and effect.&#160; In addition, there will be

automatically substituted herein for such severed phrase, clause or provision a

phrase, clause or provision as similar as possible which is valid and

enforceable.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Headings</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The headings and

subheadings of this Agreement are inserted for convenience of reference only

and are not to be considered in construction of the provisions hereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Construction</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company and

the Executive acknowledge that this Agreement was the result of arm&#146;s-length

negotiations between sophisticated parties each represented by legal

counsel.&#160; Each and every provision of

this Agreement shall be construed as though both parties participated equally

in the drafting of same, and any rule of construction that a document shall be

construed against the drafting party shall not be applicable to this Agreement.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Survivorship</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The provisions of

Sections IV-XVII shall survive the termination or expiration of this Agreement.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS

WHEREOF, the undersigned have executed this Agreement as of the date first

above written.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPANY</font></u></b></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALTERNATIVE RESOURCES

  CORPORATION</font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:37.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTIVE</font></u></b></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.76%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:40.76%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="padding:0in 0in 0in 0in;width:59.24%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:40.76%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">George Watts</font></p>

  </td>

 </tr>

</table>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>7
<FILENAME>j4412_ex10d2.htm
<DESCRIPTION>EX-10.2
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body>



<div style="font-family:'Times New Roman';">



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT

10.2</font></b></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">SEPARATION AGREEMENT AND RELEASE</font></u></b></p>



<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alternative Resources

Corporation, a Delaware corporation (&#147;ARC&#148;), and Raymond R. Hipp, on behalf of

himself, his heirs and assigns (&#147;Hipp&#148;), hereby enter into this Separation

Agreement and Release (&#147;Agreement&#148;) this 13th day of June, 2002</font></p>



<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, ARC has

requested that Hipp resign his employment and officer positions with ARC and

its subsidiaries and his director position with subsidiaries of ARC, effective

the date hereof (the &#147;Termination Date&#148;) and resign his director position with

ARC at the directors meeting following the 2002 annual meeting of stockholders;</font></p>



<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, ARC is willing

to provide certain benefits to Hipp in exchange for the covenants and releases

set forth herein;</font></p>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp hereby resigns his employment and all officer

positions with ARC and subsidiaries. He also hereby resigns all director

positions with ARC subsidiaries and all positions as trustee of all ARC

retirement or welfare plans.&#160; Hipp shall

execute any additional documents required to reflect such resignations.&#160; Hipp agrees that he shall submit his

resignation as director of ARC at the directors meeting following the 2002

annual meeting of stockholders. These resignations and commitment to resign are

not conditional or subject to revocation, notwithstanding the right to revoke

the agreements set forth in the remainder of this Agreement.&#160; For six months after the Termination Date,

Hipp shall be reasonably available to consult with ARC on and make transitional

introductions to key customers.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In full and final satisfaction of all claims by Hipp

against ARC and the other Released Parties (as defined in Section 4), in lieu

of any other payments, covenants or obligations of ARC under the Employment

Agreement effective July 23, 1998 (&#147;Employment Agreement&#148;) and in consideration

for and subject to the undertakings described in this Agreement and conditional

upon Hipp&#146;s compliance with and not revoking this Agreement, ARC agrees to make

the following payments and to provide the following benefits to Hipp:</font></h1>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">ARC shall pay Hipp no later than the next

regularly scheduled pay period following Hipp&#146;s Termination Date, the amount of

all accrued base salary and unused vacation through the Termination Date, less

normal withholding as required by law.</font></h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">ARC shall pay to Hipp a total severance

payment of&#160; Seven Hundred Twenty

Thousand Dollars ($720,000.00), payable in equal, installments according to

ARC&#146;s customary payroll practices over the twenty-four month period beginning

on the next regular pay day following the Termination Date (but not earlier

than the day that this Agreement becomes irrevocable, assuming it is not

previously revoked (the &#147;Effective Date&#148;)), less normal withholding as required

by law.</font></h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Conditional upon Fleet Capital

Corporation waiving any potential default under the net worth and fixed charge

covenants of ARC&#146;s Credit and Security Agreement dated January 31, 2002 for

the&#160; second quarter of 2002 (&#147;Credit

Agreement&#148;), ARC shall pay Hipp&#146;s remaining unpaid </font></h2>





<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></h2>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d2.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<h2 align="center" style="font-size:12.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">portion of stay-bonus as

follows, less normal withholding as required by law:</font></h2>



<p style="margin:0in 0in 12.0pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $200,0000 on the Effective Date; and</font></p>



<p style="margin:0in 0in 12.0pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $28,000

on January 1, 2003.</font></p>



<p align="left" style="margin:0in 0in 12.0pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARC shall use reasonable

efforts (but without guaranty) to obtain the Fleet&#160; Capital Corporation waiver.</font></p>



<p align="left" style="margin:0in 0in 12.0pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Fleet Capital Corporation

does not waive any potential default under the fixed charge and net worth

covenants of the Credit Agreement, ARC shall pay Hipp&#146;s remaining unpaid

portion of stay-bonus as follows, less normal withholding as required by law:</font></p>



<p style="margin:0in 0in 12.0pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $57,000

on June 30, 2002;</font></p>



<p style="margin:0in 0in 12.0pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $57,000

on September 30, 2002; and</font></p>



<p style="margin:0in 0in 12.0pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $114,000

on December 31, 2002.</font></p>



<p style="margin:0in 0in 12.0pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<h3 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Hipp shall be

entitled to continue his current group health plan coverage, without premium

charge, in accordance with his current group health plan elections&#160; for the term of severance payments as

provided in Section 2(b) of this Agreement.&#160;

Thereafter, ARC shall provide Hipp and any &#147;qualified beneficiary&#148; as

defined in Section 4980B(g)(1) of the Internal Revenue Code (&#147;Code&#146;)&#160; with &#147;continuation coverage&#148; as defined in

Section 4980B(f)(2) of the Code, without premium charge, until the period of

coverage ends as provided in Section 4980B(f)(2)(B) of the Code.&#160; Prior to the end of the COBRA continuation

period, Hipp will apply for an individual insurance policy with an insurance

company of his choice, said individual insurance policy to be effective once

COBRA continuation has been exhausted in full.&#160;

ARC will pay the premium cost of individual insurance coverage (not to

exceed $25,000 per year) until the date Hipp reaches age 65 (August ,

2007).&#160; In the event Hipp is determined

to be uninsurable, and is issued written notice of such by the insurance

company, Hipp must enroll in the state alternative coverage program established

under the federal Health Insurance Portability and Accountability Act of 1996

(HIPAA), and ARC will pay the premium for HIPAA alternative state coverage (not

to exceed $25,000 per year) until Hipp reaches age 65.&#160; Hipp is required to enroll in either

individual coverage, if available, or in HIPAA alternative state coverage prior

to incurring a 63 day break in coverage, as specified under HIPAA.&#160; The 63 day period begins on the day

following the last day of COBRA continuation coverage under this Agreement.</font></h3>



<h2 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></h2>





<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></h2>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d2.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<h2 align="center" style="font-size:12.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">ARC shall pay to Hipp in accordance with

ARC policy, all reimbursements for business expenses&#160; incurred through the Termination Date, upon submission of reports

in accordance with ARC procedures; and</font></h2>



<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Hipp should die while

any amounts are payable under this Agreement,&#160;

such amounts shall be payable to Hipp&#146;s estate.</font></p>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp agrees that (except in connection with tax

reporting, or pursuant to legal process or any legal action to enforce the

terms of this Agreement), he shall keep confidential the terms of this

Agreement, except for disclosure to immediate family members under condition of

confidentiality, and except for information which ARC has first disclosed

pursuant to SEC rules.&#160; Truthful

testimony pursuant to legal process shall not be considered a violation of the

first sentence of this Section 3.&#160; In

the event that Hipp will be required pursuant to law or legal process to

disclose any information described in the first sentence of this Section 3,

Hipp shall provide ARC with notice within 48 hours of receipt of the order or

process compelling such disclosure and shall cooperate with ARC in any efforts

it undertakes to seek a protective order or other limitations on such

disclosure.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp on behalf of himself, his heirs, executors,

attorneys, administrators, successors and assigns, hereby fully and forever, to

the full extent permitted by law, releases and discharges ARC and each of ARC&#146;s

subsidiaries and each of their directors, officers, employees, accountants,

agents and attorneys, past, present and future, and all predecessors,

successors and assigns thereof (collectively &#147;Released Parties&#148;) from any and

all claims, demands, agreements, actions, suits, causes of action, damages,

injunctions, restraints and liabilities, of whatever kind or nature, in law,

equity or otherwise, whether now known or unknown, which have ever existed or

which may now exist (except to enforce the terms of this Agreement or his

vested retirement benefits), including, but not limited to, any and all claims,

liabilities, demands or causes of action relating to or arising out of Hipp&#146;s

employment, or separation from ARC including, without limitation, claims under

Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. &#167;&nbsp;2000e <u>et</u>

<u>seq</u>., 42 U.S.C. &#167;&nbsp;1981, the Civil Rights Act of 1991, the Age

Discrimination in Employment Act, the Older Workers Benefit Protection Act, the

Americans with Disabilities Act, the Family and Medical Leave Act, the Illinois

Human Rights Act, the Illinois Wage Payment and Collection Act, the Worker

Adjustment and Retraining Notification Act, the anti-trust and restraint of

trade statutes and common law, the federal and state (including, without

limitation, Illinois) statutes or common law, or claims for breach of contract,

for misrepresentation, for violation of any other federal, state or local

statute, ordinance or regulation or common law dealing in any respect with

discrimination in employment or otherwise, defamation, retaliatory or wrongful

discharge under the common law of any state, infliction of emotional distress

or any other tort under the common law of any state or for attorney&#146;s

fees.&#160; Hipp acknowledges and agrees that

this release and the covenant not to sue set forth in this Agreement are

essential and material terms of this Agreement and that without such release

and covenant not to sue, the parties would not have reached an agreement.&#160; Hipp understands and acknowledges the

significance and consequences of this release and this Agreement.</font></h1>



<h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></h1>





<h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></h1>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d2.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<h1 align="center" style="font-size:12.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</h1>



<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the

foregoing, nothing herein shall be deemed to release (i) ARC from any

indemnification obligations to Hipp it has under law, ARC&#146;s certificate of

incorporation or bylaws or Hipp&#146;s existing indemnification agreement, (ii) Hipp

from any rights he may have with respect to any ARC stock of which he is the

record owner, or (iii) Hipp with respect to any rights that Hipp may have in

connection with any employee benefit plan as defined in Section 3(3) of the

Employee Retirement Security Income Act of 1974, as amended.</font></p>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The following provisions are applicable to and made a

part of this Agreement and the foregoing general release and waiver:</font></h1>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Hipp acknowledges that this Agreement

includes a waiver of rights and claims under the Age Discrimination in

Employment Act and understands that he is not waiving rights or claims that may

arise after the date the parties execute this Agreement (Hipp hereby

acknowledging that any claims arising out his resignation arose prior to the

date hereof);</font></h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In exchange for this general release and

waiver hereunder, Hipp hereby acknowledges that he has received separate

consideration beyond that to which he is otherwise entitled under ARC policy or

applicable law;</font></h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Hipp acknowledges that he has entered into

this Agreement knowingly and voluntarily with full understanding of its terms;</font></h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Hipp acknowledges that he has waived his

right to consider this Agreement for at least twenty-one (21) days; and</font></h2>



<h2 align="left" style="font-weight:normal;margin:0in 0in 12.0pt 1.5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Hipp understands that he may revoke this

Agreement during the seven ( 7) calendar days following execution of this

Agreement if such revocation is received in hand by ARC to the attention of S.

Purcell by 5pm on the seventh day, and that the Agreement shall not become

effective or enforceable until after 5pm on such seventh calendar day.</font></h2>



<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hipp acknowledges that he

may learn of circumstances bearing upon the things and items released by this

Agreement, but it is his intention by doing so and doing the acts called for by

this Agreement, that this Agreement shall be effective as a full and final

accord and satisfaction and release of each and every thing and item released

herein, whether known or unknown.</font></p>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the maximum extent permitted by law, Hipp covenants

not to sue or to institute or cause to be instituted any kind of claim or

action (except to enforce this Agreement) in any federal, state or local agency

or court against any of the parties released hereby relating to the matters

covered by such releases.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp warrants and represents that he has neither made,

will make, nor suffer to be made any assignment or transfer of any right,

claim, demand or cause of action covered by the above releases or covenant not

to sue, that he is the sole and absolute owner thereof, and that he has not

filed or suffered to be filed on his behalf against the other party, any </font></h1>



<h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></h1>





<h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></h1>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d2.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<h1 align="center" style="font-size:12.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">claim, action, demand of any kind covered by the above

releases or covenant not to sue as of the Termination Date.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Not later than&#160;

Monday, June 17, 2002, Hipp shall return to ARC all property of ARC

under his possession or control.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither this Agreement nor performance hereunder

constitutes an admission by either party of any violation of any federal, state

or local law, regulation, common law, of any breach of any contract or any

other wrongdoing of any type.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event that any section or

provision of this Agreement shall be determined to be contrary to governing law

or otherwise unenforceable, all remaining portions of this Agreement shall be

enforced to the maximum extent permitted by law; the unenforceable paragraph,

subparagraph or provision shall first be construed or interpreted, if possible,

to render it enforceable and, if that is not possible, then the provision shall

be severed and disregarded, and the remainder of this Agreement shall be

enforced to the maximum extent permitted by law.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp acknowledges and confirms, and

as a material term to this Agreement agrees to abide by, the covenants in

Section IX A (Cooperation), IX B (Confidential Information), IX C (Certain

Restricted Activities) of Hipp&#146;s Employment Agreement.&#160; Both parties agree that the remedies for

breach in Section IX D thereof apply to any breach of this Agreement</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp shall not take any action

intended to portray ARC or its management&#160;

in a negative light.&#160; Hipp

acknowledges that he has no authority from and after the Termination Date to

act as a spokesperson for ARC.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement shall be governed by

and construed in accordance with the internal substantive laws of the State of

Illinois.</font></h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Hipp acknowledges that he has

carefully read this Agreement and fully understands its meaning, that counsel

represented him in connection with the negotiation of this Agreement, that he

has full knowledge of the effect of this Agreement and is entering into it

voluntarily and without coercion or duress, and the only consideration he is

receiving for signing this Agreement is described herein, and no other promises

or representations of any kind have been made by any person or entity to cause

him to sign this Agreement.</font></h1>



<h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></h1>





<h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></h1>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d2.htm',USER='chendri',CD='Aug 14 08:41 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<h1 align="center" style="font-size:12.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</h1>



<h1 align="left" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except for the provisions of the

Employment Agreement incorporated into Section 11 of this Agreement which the

parties acknowledge continue beyond the Termination Date, and any

indemnification obligations to Hipp under Hipp&#146;s existing indemnification

agreement, this Agreement contains the entire agreement and understanding

between ARC and Hipp concerning the matters described herein and supercedes all

prior agreements, discussions, negotiations and understandings between ARC and

Hipp. The terms of this Agreement cannot be changed except in a subsequent

document signed by Hipp and an authorized representative of ARC.</font></h1>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alternative Resources Corporation.</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="33%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:33.46%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Joanne

  Brandes</font></p>

  </td>

  <td width="62%" valign="top" style="padding:0in .7pt 0in .7pt;width:62.46%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its</font></p>

  </td>

  <td width="33%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:33.46%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director and

  authorized signatory</font></p>

  </td>

  <td width="62%" valign="top" style="padding:0in .7pt 0in .7pt;width:62.46%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.46%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="62%" valign="top" style="padding:0in .7pt 0in .7pt;width:62.46%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/</font></p>

  </td>

  <td width="33%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:33.46%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Raymond R. Hipp</font></p>

  </td>

  <td width="62%" valign="top" style="padding:0in .7pt 0in .7pt;width:62.46%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="37%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:37.54%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Raymond R. Hipp</font></p>

  </td>

  <td width="62%" valign="top" style="padding:0in .7pt 0in .7pt;width:62.46%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>8
<FILENAME>j4412_ex10d3.htm
<DESCRIPTION>EX-10.3
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body link="blue" vlink="purple">



<div style="font-family:'Times New Roman';">



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DIRECTOR AGREEMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This DIRECTOR

AGREEMENT (&#147;Agreement&#148;) is made effective as of August 5, 2002&#160; by and between Alternative Resources

Corporation, (the &#147;Company&#148;) and Robert Stanojev (the &#147;Director&#148;).</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In

consideration of the mutual covenants contained in this Agreement, the parties

hereby agree as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

I</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT

TO SERVE AS DIRECTOR</font></u></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AND

CHAIRMAN OF THE BOARD</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s

Board of Directors has elected Director as an additional member of the Board of

Directors of the Company and further elected him as non-executive Chairman of

the Board, having the duties described in the bylaws of the Company and the

additional duties and responsibilities described in this Agreement.&#160; Director agrees to serve in these roles in

accordance with the terms of this Agreement until his resignation or removal as

Chairman.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

II</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">POSITION

AND RESPONSIBILITIES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director shall

serve as consultant and counselor to the Board of Directors and to the Chief

Executive Officer of the Company.&#160; In

that capacity, he shall be responsible to jointly develop with the Chief

Executive Officer the Company strategy (subject, where appropriate, to the

approval of the Board of Directors), facilitate the communication between the

Chief Executive Officer and the Board of Directors, and to fulfill a leading

role in the Board of Directors&#146; direction and supervision of the Chief

Executive Officer. Director shall participate with and assist the Chief

Executive Officer in the selection and hiring of management who report directly

to the Chief Executive Officer.&#160;

Director shall also participate in outreach to prospective strategic

partners and customers of the Company, and shall travel as necessary. For the

first ninety (90) days of this Agreement, Director shall devote all of his

business time and attention to his duties hereunder. Thereafter, Director is

expected to devote from two to three days a month to his duties hereunder.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d3.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

III</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DIRECTORS

FEES AND OPTIONS</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fees</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">While serving

as Chairman of the Board, Director shall be paid director&#146;s fees at the rate of

$100,000 per annum, payable in monthly installments.&#160; These fees are in lieu of all other directors fees to which other

directors are entitled.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Options</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company

has granted to Director stock options outside of the Company&#146;s option plans to

purchase 400,000 shares of common stock of the Company with an exercise price

equal to fair market value per share on the date hereof, vesting, so long as

Director remains Chairman of the Board, in three annual installments of

133,333, 133,333 and 133,334 shares on the first, second and third annual

anniversaries of the date hereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding

the foregoing:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If&#160;

Director is removed by the Company from his position as Chairman on or

prior to the ninety (90) day anniversary of the date hereof, no options shall

vest, and they shall terminate.&#160; If&#160; Director is removed by the Company from his

position as Chairman without Cause after the ninety day anniversary but prior

to the first annual anniversary&#160; of the

date hereof , 133,333 shares of&#160; this

option shall become fully vested and exercisable for the 30 day

post-termination period specified in the option . If&#160; Director is removed by the Company from his position as Chairman

without Cause after the first annual anniversary of the date hereof but prior

to the second annual anniversary of the date hereof, 200,000 shares of this

option (less the portion of this option already vested) shall become fully

vested and exercisable for the 30 day post-termination period specified in the

option. In the event that Director disputes and has timely submitted the

determination of Cause to arbitration in accordance with this Agreement, then

the period for exercise of his options provided for in this Agreement shall be

suspended until the Arbitrator submits a written decision and, in the event of

a determination in favor of Director, shall then run for a period of thirty

(30) days after such determination.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If there is a change in control of

the Company, all of these options shall become fully vested and shall remain

exercisable both during his continued position as Chairman of the Board, and,

if Director&#146;s position as Chairman of the Board is terminated or he resigns

that position on or after the change in control, for the designated

post-termination period specified in those options.&#160; For purposes of this Agreement, a &#147;change in control&#148; of the

Company shall be deemed to occur at the effective time of (i) a merger or

consolidation of the Company with one or more other corporations as a result of

which the holders of the outstanding voting stock of the Company immediately

prior to such merger or consolidation (other than the surviving or </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d3.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">resulting corporation or any

affiliate thereof) hold less than 50% of the voting stock of the surviving or

resulting corporation, or (ii) a transfer of more than 50% (in value) of the

assets of the Company other than to a transferee in which the Company owns at

least 50% of the voting stock immediately prior to the consummation of such

transaction.<b><font style="font-weight:bold;">&#160; </font></b>Solely for the

purposes of this definition, the Wynnchurch Capital entities shall always be

deemed to hold the shares into or for which any convertible securities and

warrants held by them are convertible or exercisable, and such shares shall be

deemed outstanding.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event of a termination of

Directors&#146; position as Chairman for Cause at any time, the options which have

not been exercised shall cancel and be nonexercisable.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The options granted

above are in lieu of all entitlement to annual option grants to which

nonemployee directors may be entitled under the Company&#146;s option plans, and

Executive waives and declines all rights thereto, notwithstanding any

provisions in such plans to the contrary.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u> No other Benefits/No Employment

Status</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director

understands that he is not an employee of the Company for any purpose and shall

not be entitled to participate in any retirement, health or other benefits

which are reserved to employees of the Company.&#160; Director acknowledges that he is responsible for payment of all

taxes associated with the fees and director stock options granted hereunder.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

IV</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BUSINESS

EXPENSES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company

will reimburse the Director for all reasonable travel and other expenses

incurred by the Director in connection with the performance of his duties and</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">responsibilities under this

Agreement.&#160; Director must support all

expenditures with customary receipts and expense reports subject to review by

the Company&#146;s Chief Financial Officer.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

V</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TERMINATION

</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination by Company.</u></font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director

serves as Chairman at the pleasure of the Board of Directors and may be removed

from such position at any time by the Board of Directors with or without Cause.

&#147;Cause&#148; means and is limited to the good faith determination by the Company&#146;s

Board of Directors that Director&#160; (i)

has breached his specific performance duties assigned to him in this Agreement

which Director has not diligently commenced to cure and completed the cure of within

ten days following specific written notice of the breach or (ii) has breached

his fiduciary duties of loyalty to the Company</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d3.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Arbitration Right.</u></font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Director

disputes (by giving written notice to the Company) any determination of Cause

by the Board of Directors within 15 days of being notified in writing of such a

determination, then Director may within 15 days after the giving of his notice

of dispute, submit the determination of whether there existed Cause for removal

to arbitration in accordance with Section VII hereof, and the burden of proving

Cause at such arbitration shall be on the Company or the Board of Directors.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Resignation.</u></font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director may

also resign as Chairman at any time upon written notice. In any of these

events, Director shall also deliver his&#160;

resignation as director of the Company and shall be entitled to receive

his accrued directors fees prorated through the date of his removal as Chairman.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

VI</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INDEMNIFICATION,

LITIGATION</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to

such bylaw provisions as may from time to time be in effect, the Company will

execute with Director the current form of Indemnification Agreement granted to

directors.&#160; The foregoing

indemnification shall continue to apply following termination of his positions

for actions or omissions during his service as Chairman of the Board.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

VII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ENTIRE

AGREEMENTS</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement contains the entire agreement between the Company and

the Director with respect to the subject matter and supersedes any negotiations

or prior understandings prior employment, or consulting agreements&#160; or letters of understanding between the

Company and Director. This Agreement may not be modified or amended except in

writing signed by the parties.&#160; No term

or condition of this Agreement will be deemed to have been waived, except in

writing by the party charged with waiver.&#160;

A waiver shall operate only as to the specific term or condition waived

and will not constitute a waiver for the future or act on anything other than

that which is specifically waived.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d3.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION VIII</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GOVERNING

LAW AND ARBITRATION</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement and its validity,

interpretation, performance and enforcement shall be governed by the laws of the

State of Delaware , without giving effect to the choice of law provisions

thereof.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Arbitration of the existence of

Cause shall be subject to the following:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(i) Arbitration

shall be conducted by a single arbitrator (the Arbitrator&#148;) in accordance with

the Commercial Arbitration Rules of the American Arbitration Association,

except as provide herein, in Chicago, Illinois. </font><font size="2" style="font-size:10.0pt;">The parties shall attempt to agree on the selection of

the Arbitrator for the arbitration proceeding.&#160;

If the parties cannot reach such an agreement within three weeks from

the filing of the initial arbitration demand, the Arbitrator shall be selected

according to the Rules of the American Arbitration Association.</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Arbitrator shall not be allowed to issue punitive,

exemplary, or treble damages against any party, and the sole effect of the

arbitration shall be whether or not the director stock options provided for

under this Agreement may be exercised after termination of Director&#146;s position

as Chairman of the Board.</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except

as otherwise agreed to by the parties, the arbitration proceeding shall begin

no later than thirty days after the filing of the initial arbitration demand.

The arbitration proceedings shall be held from 10:00 a.m. to 3:00 p.m. on

consecutive business days until the arbitration is completed. Each party shall

be allowed four days to present its case in chief.&#160; The time for the opposing party&#146;s cross-examination of witnesses

shall not be included as part of the time for the presentment of a party&#146;s case-in-chief.

The Arbitrator shall not be bound by any strict rules of evidence and may

consider any evidence presented at the arbitration hearing as he deem

appropriate. A court reporter shall attend and record all of the arbitration

proceedings (including but not limited to the argument and rulings on discovery

motions).</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any

documents or other information produced by a party or non-party in any

arbitration proceeding hereunder shall be treated by the parties as

confidential and shall be used solely for the purposes of such arbitration

proceeding and for no other purpose.&#160;

The parties shall not provide any such confidential information to any

person without the prior written consent of the producing party, except that

the parties may provide such confidential information to any retained expert

who, in advance of receiving any such confidential information, agrees in

writing to keep such information confidential as set forth herein. The

arbitration proceedings </font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d3.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;text-indent:0in;">&nbsp;</p>



<p style="margin:0in 0in 12.0pt 1.0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and the decision

issued pursuant to such proceedings shall be confidential, except for such

public disclosure as is required by the Company in accordance with law.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION

IX</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOTICES</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices,

requests, consents and other communications hereunder shall be in writing and

shall be deemed to have been made when delivered or mailed first-class postage

prepaid by registered mail, return receipt requested, or when delivered if by

hand, overnight delivery services or confirmed facsimile transmission, to the

following:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If to the Company, at:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="80%" style="border-collapse:collapse;margin-left:1.5in;width:80.0%;">

 <tr>

  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alternative

  Resources Corporation</font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;600 Hart

  Road, Suite 300, Barrington,</font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Illinois&#160;

  60010</font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:

  Chief Executive Officer</font></p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or at such other address as may

have been furnished to the Director by the Company in writing, or</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If to the Director, at the address he

has furnished to the Company in writing.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION X</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MISCELLANEOUS</font></u></b></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Multiple Counterparts</u></font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be executed simultaneously

in multiple counterparts each of the same force and effect.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any phrase,

clause or provision of this Agreement is declared invalid or unenforceable by

an arbitrator or court of competent jurisdiction, such phrase, clause or

provision shall be deemed severed from this Agreement, but will not affect any

other provisions of this Agreement, which shall otherwise remain in full force

and effect.&#160; In addition, there will be

automatically substituted herein for such severed phrase, clause or provision a

phrase, clause or provision as similar as possible which is valid and

enforceable.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex10d3.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Headings</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The headings

and subheadings of this Agreement are inserted for convenience of reference

only and are not to be considered in construction of the provisions hereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Construction</u></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company

and the Director acknowledge that this Agreement was the result of arm&#146;s-length

negotiations between sophisticated parties.&#160;&#160;

Each and every provision of this Agreement shall be construed as though

both parties participated equally in the drafting of same, and any rule of

construction that a document shall be construed against the drafting party

shall not be applicable to this Agreement.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS

WHEREOF, the undersigned have executed this Agreement as of the date first

above written.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPANY</font></u></b>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DIRECTOR</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;width:86.58%;">

 <tr>

  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.92%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALTERNATIVE

  RESOURCES <br>

  CORPORATION</font></p>

  </td>

  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.98%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.92%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.1%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.98%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.28%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.64%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:40.98%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.28%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>

  </td>

  <td width="48%" valign="top" style="border:none;border-top:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:48.64%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief

  Executive Officer</font></p>

  </td>

  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="40%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:40.98%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert

  Stanojev</font></p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>9
<FILENAME>j4412_ex99d1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body>



<div style="font-family:'Times New Roman';">



<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit

99.1</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350 AS ADOPTED<br>

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<h1 style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with the

Quarterly Report of Alternative Resources Corporation (the &#147;Company&#148;) on Form

10-Q for the period ending June 30, 2002 as filed with the Securities and

Exchange Commission on the date hereof (the &#147;Report&#148;), the undersigned Chief

Executive Officer and Chief Financial Officer of the Company hereby certify,

pursuant to 18 U.S.C. &#167; 1350, as adopted pursuant to &#167; 906 of the

Sarbanes-Oxley Act of 2002, that based on their knowledge:</font></h1>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1) The Report fully complies with the requirements of Section 13(a) or

15(d) of the Securities Exchange Act of 1934, and</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2) The information

contained in the Report fairly presents, in all material respects, the

financial condition and results of operations of the Company as of and for the

periods covered in the Report.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="36%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:36.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&#160; George

  W. Watts</font></p>

  </td>

  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.16%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="16%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:16.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8/9/02</font></p>

  </td>

  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">George W. Watts, Chief Executive Officer</font></p>

  </td>

  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.16%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="16%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:16.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>

  </td>

  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.16%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.36%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.36%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="36%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:36.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&#160; Steve

  Purcell</font></p>

  </td>

  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.16%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="16%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:16.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8/9/02</font></p>

  </td>

  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Steve Purcell, Chief Financial Officer</font></p>

  </td>

  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.16%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="16%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:16.36%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>

  </td>

  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>




<!-- SEQ.=1,FOLIO='',FILE='C:\C2\chendrickson\4412_6\t_775729\j4412_ex99d1.htm',USER='chendri',CD='Aug 14 08:42 2002' -->
</body>



</html>

</TEXT>
</DOCUMENT>
</SUBMISSION>
