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

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    <B><FONT style="font-size: 9pt">As filed with the Securities and
    Exchange Commission on April 29, 2010</FONT></B>
</DIV>

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    <B><FONT style="font-size: 9pt">Registration
    No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

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    <B><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



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    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;S-1</FONT></FONT></B>
</DIV>

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    <B><FONT style="font-size: 12pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Under</FONT></B>
</DIV>

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    <B><FONT style="font-size: 12pt">The Securities Act of
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



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    <B><FONT style="font-size: 24pt">RealPage, Inc.</FONT></B>
</DIV>

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    <I><FONT style="font-size: 8pt">(Exact name of Registrant as
    specified in its charter)</FONT></I>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

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    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
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<TD nowrap align="center" valign="top">
    <B>Delaware</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>7372</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>75-2788861</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification Number)</FONT></I><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 9pt">4000 International
    Parkway</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Carrollton, Texas
    75007</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Tel:
    (972)&#160;820-3000</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address, including zip code,
    and telephone number, including area code, of Registrant&#146;s
    principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



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    <B><FONT style="font-size: 9pt">Timothy J. Barker</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">4000 International
    Parkway</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Carrollton, Texas
    75007</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Tel:
    (972)&#160;820-3000</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 9pt">Copies to:</FONT></I></B>
</DIV>



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<TD align="center" valign="top">
    <B>Paul R. Tobias<BR>
    Wilson Sonsini Goodrich &#038; Rosati,<BR>
    Professional Corporation<BR>
    900&#160;S.&#160;Capital of Texas Hwy.<BR>
    Las Cimas IV, Fifth Floor<BR>
    Austin, Texas 78746<BR>
    Tel: (512)&#160;338-5400</B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>William H. Hinman Jr.<BR>
    Simpson Thacher &#038; Bartlett LLP<BR>
    2550 Hanover Street<BR>
    Palo Alto, California 94304<BR>
    Tel: (650) 251-5000 </B>
</TD>
</TR>
</TABLE>

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</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale to the
    public:</B>&#160;&#160;As soon as practicable after the
    effective date of this Registration Statement.
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act of 1933, check the
    following
    box.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in
    Rule&#160;12b-2 of the Exchange Act. (Check one):<BR>
    Large accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;Accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;Non-accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>&#160;&#160;&#160;&#160;&#160;Smaller
    reporting
    company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT><BR>
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(Do
    not check if a smaller reporting company)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
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    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
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<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Each Class of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Price<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP></B>

</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fee</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common Stock, $0.001&#160;par value per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $150,000,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $10,695.00
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Includes offering price of shares
    issuable upon exercise of the underwriters&#146; over-allotment
    option.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>



<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Estimated solely for the purpose of
    calculating the amount of the registration fee in accordance
    with Rule&#160;457(o) of the Securities Act of 1933.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Commission,
    acting pursuant to said Section&#160;8(a), may determine.</B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

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

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<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD style=text-align:justify>
<FONT style="font-size: 10pt; font-family: Arial, Helvetica; color: #E8112D">The
information in this prospectus is not complete and may be
changed. Neither we nor the selling stockholders may sell these
securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities, and neither we nor the
selling stockholders are soliciting an offer to buy these
securities in any state where the offer or sale is not
permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica; color: #E8112D">SUBJECT
    TO COMPLETION, DATED APRIL 29, 2010
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 16pt; font-family: Arial, Helvetica">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shares
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <IMG src="d71244d7124400.gif" alt=""><B><FONT style="font-family: 'Times New Roman', Times">
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt; font-family: Arial, Helvetica">RealPage,
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 16pt; font-family: Arial, Helvetica">Common
    Stock
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">This is the initial
    public offering of our common stock. We are
    selling&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock and the selling stockholders identified in this
    prospectus are
    selling&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock. We will not receive any proceeds from the sale
    of shares of common stock by the selling stockholders.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Prior to this
    offering, there has been no public market for our common stock.
    The initial public offering price of our common stock is
    expected to be between $&#160;&#160;&#160; and
    $&#160;&#160;&#160; per share. We will apply to list our common
    stock on the NASDAQ Global Market under the symbol
    &#147;&#160;&#160;&#160;&#160;&#160;.&#148;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">The underwriters
    have an option to purchase a maximum
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;additional
    shares from the selling stockholders to cover over-allotments.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-family: Arial, Helvetica">Investing in our
    common stock involves risks.&#160;&#160;See &#147;Risk
    Factors&#148; on page 10.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="35%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Underwriting<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Price to<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Discounts and<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Proceeds to<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Proceeds to<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">Public</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">Commissions</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">RealPage</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">Selling
    Stockholders</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="font-family: Arial, Helvetica">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="font-family: Arial, Helvetica">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="font-family: Arial, Helvetica">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Delivery of the
    shares of common stock will be made on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Neither the
    Securities and Exchange Commission nor any state securities
    commission has approved or disapproved of these securities or
    determined if this prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense.
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 18pt; font-family: Arial, Helvetica">Credit
    Suisse</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 18pt; font-family: Arial, Helvetica">
    Deutsche Bank Securities</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">William
    Blair&#160;&#038; Company</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">
    RBC Capital Markets</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">JMP
    Securities</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">
    Pacific Crest Securities</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">The date of this
    prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010.
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV align="left">
<!-- TOC -->
</DIV>

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

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><FONT style="font-variant: SMALL-CAPS">Prospectus
    Summary</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><FONT style="font-variant: SMALL-CAPS">Risk
    Factors</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><FONT style="font-variant: SMALL-CAPS">Special
    Note Regarding Forward-Looking Statements and Industry
    Data</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><FONT style="font-variant: SMALL-CAPS">Use of
    Proceeds</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><FONT style="font-variant: SMALL-CAPS">Dividend
    Policy</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><FONT style="font-variant: SMALL-CAPS">Capitalization</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><FONT style="font-variant: SMALL-CAPS">Dilution</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><FONT style="font-variant: SMALL-CAPS">Selected
    Consolidated Financial Data</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><FONT style="font-variant: SMALL-CAPS">Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><FONT style="font-variant: SMALL-CAPS">Business</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><FONT style="font-variant: SMALL-CAPS">Management</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><FONT style="font-variant: SMALL-CAPS">Executive
    Compensation</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><FONT style="font-variant: SMALL-CAPS">Certain
    Relationships and Related Party Transactions</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><FONT style="font-variant: SMALL-CAPS">Principal
    and Selling Stockholders</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><FONT style="font-variant: SMALL-CAPS">Description
    of Capital Stock</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'><FONT style="font-variant: SMALL-CAPS">Shares
    Eligible for Future Sale</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'><FONT style="font-variant: SMALL-CAPS">Material
    U.S. Federal Income Tax and Estate Tax Consequences to Non-U.S.
    Holders</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'><FONT style="font-variant: SMALL-CAPS">Underwriting</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'><FONT style="font-variant: SMALL-CAPS">Notice to
    Canadian Residents</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'><FONT style="font-variant: SMALL-CAPS">Legal
    Matters</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'><FONT style="font-variant: SMALL-CAPS">Experts</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'><FONT style="font-variant: SMALL-CAPS">Where You
    Can Find Additional Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'><FONT style="font-variant: SMALL-CAPS">Index to
    Consolidated Financial Statements</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained in this
    document or to which we have referred you. We have not
    authorized anyone to provide you with information that is
    different. This document may only be used where it is legal to
    sell these securities. The information in this document may only
    be accurate on the date of this document.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dealer
    Prospectus Delivery Obligation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 (25&#160;days after the commencement of this offering), all
    dealers that effect transactions in these securities, whether or
    not participating in this offering, may be required to deliver a
    prospectus. This is in addition to the dealer&#146;s obligation
    to deliver a prospectus when acting as an underwriter and with
    respect to unsold allotments or subscriptions.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights information contained elsewhere in
    this prospectus and does not contain all of the information you
    should consider in making your investment decision. You should
    read this entire prospectus carefully, especially the risks of
    investing in our common stock discussed under &#147;Risk
    Factors&#148; and the consolidated financial statements and
    related notes included elsewhere in this prospectus, before
    making an investment decision.</I>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Company
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a leading provider of on demand software solutions for
    the rental housing industry. Our broad range of property
    management solutions enables owners and managers of
    single-family and a wide variety of multi-family rental property
    types to manage their marketing, pricing, screening, leasing,
    accounting, purchasing and other property operations. Our on
    demand software solutions are delivered through an integrated
    software platform that provides a single point of access and a
    shared repository of prospect, resident and property data. By
    integrating and streamlining a wide range of complex processes
    and interactions among the rental housing ecosystem of owners,
    managers, prospects, residents and service providers, our
    platform optimizes the property management process and improves
    the experience for all of these constituents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our solutions enable property owners and managers to increase
    revenues and reduce operating costs through higher occupancy,
    improved pricing methodologies, new sources of revenue from
    ancillary services, improved collections and more integrated and
    centralized processes. As of December&#160;31, 2009, over 5,000
    customers used one or more of our on demand software solutions
    to help manage the operations of approximately 4.6&#160;million
    rental housing units. Our customers include nine of the ten
    largest multi-family property management companies in the United
    States, ranked as of January&#160;1, 2009, based on number of
    units managed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell our solutions through our direct sales organization. Our
    total revenues were approximately $83.6&#160;million,
    $112.6&#160;million and $140.9&#160;million in 2007, 2008 and
    2009, respectively. In the same years, we had operating (loss)
    income of approximately ($1.6&#160;million), ($0.4&#160;million)
    and $6.9&#160;million, respectively, and net (loss) income of
    approximately ($3.1&#160;million), ($3.2&#160;million) and
    $28.4&#160;million, respectively. Net income for 2009 included a
    discrete tax benefit of approximately $26.0&#160;million as a
    result of a reduction of our net deferred tax assets valuation
    allowance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Adjusted EBITDA in 2007, 2008 and 2009 was approximately
    $6.0&#160;million, $13.1&#160;million and $25.6&#160;million,
    respectively. We believe Adjusted EBITDA is useful to investors
    in evaluating our operating performance. Our management uses
    Adjusted EBITDA in conjunction with accounting principles
    generally accepted in the United States, or GAAP, operating
    performance measures as part of its overall assessment of our
    performance for planning purposes, including the preparation of
    our annual operating budget, to evaluate the effectiveness of
    our business strategies and to communicate with our board of
    directors concerning our financial performance. Adjusted EBITDA
    should not be considered as an alternative financial measure to
    net (loss) income, which is the most directly comparable
    financial measure calculated in accordance with GAAP, or any
    other measure of financial performance calculated in accordance
    with GAAP. The following table presents a reconciliation of net
    (loss) income to Adjusted EBITDA:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 1pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and asset impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Amortization of intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,095
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition-related expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
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&nbsp;
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    <BR>
    1
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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    For further discussion regarding Adjusted EBITDA, see footnote 5
    to the table in &#147;Selected Consolidated Financial Data.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rental housing market is large and characterized by
    challenging and location-specific operating requirements,
    diverse industry participants, significant mobility among
    residents and a variety of property types, including
    single-family and a wide range of
    <FONT style="white-space: nowrap">multi-family</FONT>
    property types, including conventional, affordable, privatized
    military, student and senior housing. According to the
    U.S.&#160;Census Bureau American Housing Survey for the United
    States: 2007, there were 39.3&#160;million rental housing units
    in the United States in 2007. Based on U.S.&#160;Census Bureau
    data and our own estimates, we believe that the overall size of
    the U.S.&#160;rental housing market, including rent, utilities
    and insurance, exceeds $300&#160;billion annually. We estimate
    that the total addressable market for our current on demand
    software solutions is approximately $5.5&#160;billion per year.
    This estimate assumes that each of the 39.3 million rental units
    in the United States has the potential to generate annually a
    range of approximately $100 in revenue per unit for
    single-family units to approximately $240 in revenue per unit
    for conventional multi-family units. We base this potential
    revenue assumption on our review of the purchasing patterns of
    our existing customers with respect to our on demand software
    solutions, the on demand software solutions currently utilized
    by our existing customers, the number of units our customers
    manage with these solutions and our current pricing for our on
    demand software solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rental property management spans both the resident lifecycle and
    the operations of a property. The resident lifecycle can be
    separated into four key stages: prospect, applicant, residency
    and post-residency. Each stage of the lifecycle has unique
    requirements, such as identifying and capturing quality
    prospects, processing applications, assessing applicants&#146;
    credit risk, processing payments to and from residents and
    service providers and managing resident turnover. In addition to
    managing the resident lifecycle, property owners and managers
    must also manage the operations of their properties, including
    material and service provider procurement, insurance and risk
    mitigation, utility and energy management, information
    technology and telecommunications management, accounting,
    expense tracking and management, document management, security,
    staff hiring and training, staff performance measurement and
    management and marketing. A property owner&#146;s or
    manager&#146;s ability to effectively address these requirements
    can significantly impact their revenue and profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A variety of software applications have been developed to
    automate many of these functions. However, these applications
    often require property owners and managers to implement a myriad
    of third-party
    <FONT style="white-space: nowrap">and/or</FONT>
    internally developed point solutions. These solutions can be
    expensive to implement and maintain and are often ineffective at
    helping property owners and managers increase rental revenue and
    reduce costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    RealPage Solution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We provide a platform of on demand software solutions that
    integrate and streamline rental property management business
    functions. Our solutions enable owners and managers of
    single-family and a wide variety of multi-family rental property
    types, including conventional, affordable, privatized military,
    student and senior housing, to manage their marketing, pricing,
    screening, leasing, accounting, purchasing and other property
    operations. These functions have traditionally been addressed by
    individual, disparate applications. Our solutions enable
    property owners and managers to increase revenues and reduce
    operating costs through higher occupancy, improved pricing
    methodologies, new sources of revenue from ancillary services,
    improved collections and more integrated and centralized
    business processes. Our solutions contribute to a more efficient
    property management process and an improved experience for all
    of the constituents involved in the rental housing ecosystem,
    including owners, managers, prospects, residents and service
    providers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The benefits of our solutions for our customers include the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Increased revenues.</I>&#160;&#160;Our solutions help our
    customers improve sales and marketing effectiveness, optimize
    pricing and occupancy and improve collection of rental payments,
    utility expenses, late fees and other charges.
</TD>
</TR>

</TABLE>
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    <BR>
    2
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Reduced operating costs.</I>&#160;&#160;Our solutions help
    our customers streamline and automate many ongoing property
    management functions, centralize certain property operations,
    control purchasing by on-site personnel and eliminate the need
    to own and support property management applications and
    associated hardware infrastructure.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Improved quality of service for residents and
    prospects.</I>&#160;&#160;Our solutions expedite the processing
    of a variety of recurring transactions and increase the
    frequency and quality of communication with residents and
    prospects, providing higher resident satisfaction and increased
    differentiation from competing properties that do not use our
    solutions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Streamlined and simplified property management business
    processes.</I>&#160;&#160;Our solutions share data and automate
    the workflow of certain business processes, thereby eliminating
    redundant data entry and simplifying many recurring tasks.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Ability to integrate third-party products and
    services.</I>&#160;&#160;Our open architecture and application
    framework facilitate the integration of third-party applications
    and services into our solutions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Increased visibility into property
    performance.</I>&#160;&#160;Our integrated platform and common
    data repository enable owners and managers to gain a
    comprehensive view of the operational and financial performance
    of each of their properties.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Simple implementation and support.</I>&#160;&#160;Our
    solutions include pre-configured extensions that meet the
    specific needs of a variety of property types and can be easily
    tailored by our customers to meet the specific needs of their
    properties or business processes.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Improved scalability.</I>&#160;&#160;Our application
    infrastructure is designed to evolve with our customers&#146;
    needs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The competitive strengths of our solutions are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Integrated on demand software platform based on a common data
    repository.</I>&#160;&#160;Our solutions are delivered through
    an integrated on demand software platform that provides a single
    point of access via the Internet to all of our products and a
    common repository of prospect, resident and property data.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Large and growing ecosystem of property owners, managers,
    prospects, residents and service providers. </I>&#160;&#160;Our
    solutions automate and streamline many of the recurring
    transactions and interactions among a large and expanding rental
    housing ecosystem of property owners and managers, prospects,
    residents and service providers.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Comprehensive platform of on demand software solutions for
    property management.</I>&#160;&#160;We provide what we believe
    to be the broadest range of on demand capabilities for managing
    the resident lifecycle and core operational processes for
    residential property management.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Deep rental housing industry expertise.</I>&#160;&#160;We
    design our solutions based on our extensive rental housing
    industry expertise, insight into industry trends and
    developments and best practices.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Open cloud computing architecture.</I>&#160;&#160;Our cloud
    computing architecture enables our solutions to interface with
    many of our customers&#146; existing systems and allows our
    customers to outsource the management of third-party business
    applications.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to leverage the breadth of our solutions and industry
    presence to solidify our position as a leading provider of on
    demand software solutions to the rental housing industry. The
    key elements of our strategy to accomplish this objective are as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acquire new customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the adoption of additional solutions within our
    existing customer base;
</TD>
</TR>

</TABLE>
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    <BR>
    3
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    add new solutions to our platform;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pursue acquisitions of complementary businesses, products and
    technologies.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Affecting Us</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is subject to a number of risks that you should
    understand before making an investment decision. These risks are
    discussed more fully in &#147;Risk Factors&#148; following this
    prospectus summary. Some of these risks are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our quarterly operating results have fluctuated in the past and
    may fluctuate in the future, which could cause our stock price
    to decline;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we have a history of operating losses and may not maintain
    profitability in the future;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if we are unable to manage the growth of our diverse and complex
    operations, our financial performance may suffer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our business depends substantially on customers renewing and
    expanding their subscriptions for our solutions and any increase
    in customer cancellations or decline in customer renewals and
    expansions would harm our future operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we face intense competitive pressures and our failure to compete
    successfully could harm our operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we may not be able to continue to add new customers, which could
    adversely affect our operating results; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if we are not able to integrate past or future acquisitions
    successfully, our operating results and prospects could be
    harmed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Company
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated in the State of Delaware in December 2003
    through a merger with our predecessor entity, RealPage, Inc., a
    Texas corporation, which was originally incorporated in November
    1998 as Seren Capital Acquisition Corp. Our principal executive
    offices are located at 4000 International Parkway, Carrollton,
    Texas 75007, and our telephone number is
    <FONT style="white-space: nowrap">(972)&#160;820-3000.</FONT>
    Our website address is www.realpage.com. The information on, or
    that can be accessed through, our website is not part of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;RealPage<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;OneSite<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;OneSite Leasing and
    Rents<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OneSite
    Facilities<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OneSite
    Purchasing<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OneSite
    Accounting<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OneSite
    Budgeting<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;Propertyware<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;HUDManager<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;RentRoll<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;i-CAM<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;Tenant
    Pro<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;Spectra<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;CrossFire<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;CrossFire Contact
    Center<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;CrossFire Leasing
    Portal<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;CrossFire Resident
    Portal<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;CrossFire
    Studio<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;M/PF
    Research<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;YieldStar<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;YieldStar Price
    Optimizer<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;LeasingDesk<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;,

    &#147;LeasingDesk
    Screening<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;LeasingDesk Insurance
    Services<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;eRenterPlan<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;Credit
    Optimizer<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;Velocity<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OpsTechnology<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OpsMarket<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OpsAdvantage<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OpsBuyer<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;,

    &#147;OpsBid<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;

    and
    &#147;Domin-8<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&#148;

    are our trademarks and registered trademarks appearing in this
    prospectus. All other trademarks and trade names appearing in
    this prospectus are the property of their respective owners.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Common stock offered by us</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock offered by the selling stockholders</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Total common stock offered</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock to be outstanding after this offering</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to use the net proceeds from this offering to pay
    accumulated and unpaid dividends on our outstanding shares of
    Series&#160;A, Series&#160;A1 and Series&#160;B convertible
    preferred stock that have accrued at a rate of 8% per annum of
    the original issue price of each such share of preferred stock,
    compounded quarterly, which amounted to
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;million as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010, to repay approximately $18.2&#160;million of our
    indebtedness outstanding as of December&#160;31, 2009 and for
    general corporate purposes, including working capital. We also
    may use a portion of the net proceeds to acquire complementary
    businesses or technologies. We will not receive any proceeds
    from the sale of shares by the selling stockholders. See
    &#147;Use of Proceeds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Risk factors</TD>
    <TD></TD>
    <TD valign="bottom">
    You should read the &#147;Risk Factors&#148; section of this
    prospectus for a discussion of factors that you should consider
    carefully before deciding to invest in shares of our common
    stock.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Proposed NASDAQ Global Market symbol</TD>
    <TD></TD>
    <TD valign="bottom">
    &#147;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares of common stock that will be outstanding
    after this offering is based on 111,009,108&#160;shares of our
    common stock outstanding as of December&#160;31, 2009 and
    excludes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    15,707,456&#160;shares of common stock issuable upon the
    exercise of options outstanding as of December&#160;31, 2009
    under our 1998 Stock Incentive Plan, with a weighted average
    exercise price of $2.16 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    150,000&#160;shares of common stock issuable upon exercise of
    options outstanding as of December&#160;31, 2009 issued to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.00&#160;per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    1,721,000&#160;shares of common stock issuable upon exercise of
    options granted in the quarter ended March&#160;31, 2010 under
    our 1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    120,000&#160;shares of common stock issuable upon exercise of
    options granted in the quarter ended March&#160;31, 2010 to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock reserved for future issuance under our 2010
    Equity Incentive Plan, which will become effective in connection
    with this offering (including 732,285&#160;shares of common
    stock reserved, as of December&#160;31, 2009, for future
    issuance under our 1998 Stock Incentive Plan, which shares will
    be added to the shares reserved under our 2010 Equity Incentive
    Plan, upon its effectiveness);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    25,000&#160;shares of common stock issuable upon the exercise of
    warrants outstanding as of December&#160;31, 2009, with a
    weighted average exercise price of $1.00&#160;per share.
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated, the information in this prospectus
    assumes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a&#160;&#160;&#160;&#160;&#160;&#160;-for-&#160;&#160;&#160;&#160;&#160;&#160;
    reverse stock split of our common stock and convertible
    preferred stock to be effected prior to the completion of this
    offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the conversion of all outstanding shares of our convertible
    preferred stock into 58,087,500&#160;shares of common stock
    effective upon the completion of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    no exercise by the underwriters of their right to purchase up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock to cover over-allotments;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the filing of our amended and restated certificate of
    incorporation and the effectiveness of our amended and restated
    bylaws, which will occur immediately upon the completion of this
    offering.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Consolidated Financial Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables present summary consolidated financial data
    for the years ended December&#160;31, 2007, 2008 and 2009 and
    summary consolidated balance sheet data as of December&#160;31,
    2007, 2008 and 2009. We have derived the consolidated statement
    of operations data for the years ended December&#160;31, 2007,
    2008, and 2009 and the consolidated balance sheet data as of
    December&#160;31, 2008 and 2009 from our audited consolidated
    financial statements, which appear elsewhere in this prospectus.
    We derived the consolidated balance sheet data as of
    December&#160;31, 2007 from our unaudited consolidated financial
    statements that are not included in this prospectus. You should
    read this information in conjunction with our consolidated
    financial statements, the related notes to these financial
    statements and the information in &#147;Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations&#148; included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consolidated Statements of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total operating expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,633
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (354
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,510
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,152
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,528
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,506
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income per share attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average shares used in computing net (loss) income per
    share attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma net income per share attributable to common
    stockholders
    (unaudited)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>:

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma weighted average shares outstanding used in computing
    net income per share attributable to common stockholders
    (unaudited)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>:

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consolidated Balance Sheet Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash
    equivalents<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Working capital, excluding deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,518
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current and long-term
    debt<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,990
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stockholders&#146; deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (106,970
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (98,957
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Other Financial Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating cash flow
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital expenditures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Selected Operating Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of on demand customers at period end
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,199
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of on demand units at period end (in thousands)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total number of employees at period end
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Pro forma net income per share represents net income divided by
    the pro forma weighted average shares outstanding as though the
    conversion of our redeemable convertible preferred stock into
    common stock occurred on the original issuance dates.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Pro forma weighted average shares outstanding reflects the
    conversion of our redeemable convertible preferred stock (using
    the if-converted method) into common stock as though the
    conversion had occurred on the original dates of issuance.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes restricted cash.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes capital lease obligations.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    We define Adjusted EBITDA as net (loss) income plus depreciation
    and asset impairment, amortization of intangible assets,
    interest expense, net, income tax expense (benefit), stock-based
    compensation expense and acquisition-related expense.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We believe that the use of Adjusted EBITDA is useful to
    investors and other users of our financial statements in
    evaluating our operating performance because it provides them
    with an additional tool to compare business performance across
    companies and across periods. We believe that:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA provides investors and other users of our
    financial information consistency and comparability with our
    past financial performance, facilitates period-to-period
    comparisons of operations and facilitates comparisons with our
    peer companies, many of which use similar non-GAAP financial
    measures to supplement their GAAP results;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    it is useful to exclude certain non-cash charges, such as
    depreciation and asset impairment, amortization of intangible
    assets and stock-based compensation and non-core operational
    charges, such as acquisition-related expense, from Adjusted
    EBITDA because the amount of such expenses in any specific
    period may not directly correlate to the underlying performance
    of our business operations and these expenses can vary
    significantly between periods as a result of new acquisitions,
    full amortization of previously acquired tangible and intangible
    assets or the timing of new stock-based awards, as the case may
    be.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We use Adjusted EBITDA in conjunction with traditional GAAP
    operating performance measures as part of our overall assessment
    of our performance, for planning purposes, including the
    preparation of our </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    annual operating budget, to evaluate the effectiveness of our
    business strategies and to communicate with our board of
    directors concerning our financial performance.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We do not place undue reliance on Adjusted EBITDA as our only
    measure of operating performance. Adjusted EBITDA should not be
    considered as a substitute for other measures of liquidity or
    financial performance reported in accordance with GAAP. There
    are limitations to using non-GAAP financial measures, including
    that other companies may calculate these measures differently
    than we do, that they do not reflect our capital expenditures or
    future requirements for capital expenditures and that they do
    not reflect changes in, or cash requirements for, our working
    capital. We compensate for the inherent limitations associated
    with using Adjusted EBITDA measures through disclosure of these
    limitations, presentation of our financial statements in
    accordance with GAAP and reconciliation of Adjusted EBITDA to
    the most directly comparable GAAP measure, net (loss) income.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a reconciliation of net (loss)
    income to Adjusted EBITDA:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and asset impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Amortization of intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,095
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition-related expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents stock-based compensation included
    in each expense category:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>An investment in our common stock involves a high degree of
    risk. You should carefully consider the risks and uncertainties
    described below, together with the financial and other
    information contained in this prospectus, including our
    consolidated financial statements and related notes, before
    deciding whether to purchase shares of our common stock. If any
    of the following risks actually occurs, our business, financial
    condition, results of operations and future prospects could be
    materially and adversely affected. In that event, the market
    price of our common stock could decline and you could lose part
    or all of your investment.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    quarterly operating results have fluctuated in the past and may
    fluctuate in the future, which could cause our stock price to
    decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our quarterly operating results may fluctuate as a result of a
    variety of factors, many of which are outside of our control.
    Fluctuations in our quarterly operating results may be due to a
    number of factors, including the risks and uncertainties
    discussed elsewhere in this prospectus. Some of the important
    factors that could cause our revenues and operating results to
    fluctuate from quarter to quarter include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the extent to which on demand software solutions maintain
    current and achieve broader market acceptance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to timely introduce enhancements to our existing
    solutions and new solutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to increase sales to existing customers and attract
    new customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in our pricing policies or those of our competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the variable nature of our sales and implementation cycles;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general economic, industry and market conditions in the rental
    housing industry that impact the financial condition of our
    current and potential customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount and timing of our investment in research and
    development activities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    technical difficulties, service interruptions or security
    breaches;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to hire and retain qualified key personnel,
    including the rate of expansion of our sales force;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the legal, regulatory or compliance environment
    related to the rental housing industry, fair credit reporting,
    payment processing, privacy, utility billing, the Internet and
    <FONT style="white-space: nowrap">e-commerce;</FONT>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount and timing of operating expenses and capital
    expenditures related to the expansion of our operations and
    infrastructure;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the timing of revenue and expenses related to recent and
    potential acquisitions or dispositions of businesses or
    technologies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to integrate acquisitions in a cost-effective and
    timely manner;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    litigation and settlement costs, including unforeseen
    costs;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    new accounting pronouncements and changes in accounting
    standards or practices, particularly any affecting the
    recognition of subscription revenue or accounting for mergers
    and acquisitions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fluctuations in our quarterly operating results may lead
    analysts to change their long-term model for valuing our common
    stock, cause us to face short-term liquidity issues, impact our
    ability to retain or attract key personnel or cause other
    unanticipated issues, all of which could cause our stock price
    to decline. As a result of the potential variations in our
    quarterly revenue and operating results, we believe that
    quarter-to-quarter comparisons of our revenues and operating
    results may not be meaningful and the results of any one quarter
    should not be relied upon as an indication of future performance.
</DIV>
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    <BR>
    10
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have a history of operating losses and may not maintain
    profitability in the future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the fiscal quarter ended March&#160;31, 2009, we had
    not been profitable on a quarterly or annual basis. We
    experienced net losses of $3.1&#160;million and
    $3.2&#160;million in 2007 and 2008, respectively. As of
    December&#160;31, 2009, our accumulated deficit was
    $89.8&#160;million. While we have experienced significant growth
    over recent quarters and our net income was $28.4&#160;million
    in 2009, we may not be able to sustain or increase our growth or
    profitability in the future. Net income for 2009 included a
    discrete tax benefit of approximately $26.0&#160;million as a
    result of a reduction of our net deferred tax assets valuation
    allowance. We expect to make significant future expenditures
    related to the development and expansion of our business. In
    addition, following the completion of this offering, we expect
    that our general and administrative expenses will increase due
    to the additional operational and reporting costs associated
    with being a public company. As a result of these increased
    expenditures and expenses, we will need to generate and sustain
    increased revenue to achieve future profitability expectations.
    We may incur significant losses in the future for a number of
    reasons, including the other risks and uncertainties described
    in this prospectus. Additionally, we may encounter unforeseen
    operating expenses, difficulties, complications, delays and
    other unknown factors that may result in losses in future
    periods. If these losses exceed our expectations or our growth
    expectations are not met in future periods, our financial
    performance will be affected adversely.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are unable to manage the growth of our diverse and complex
    operations, our financial performance may suffer.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The growth in the size, complexity and diversity of our business
    and the expansion of our product lines and customer base has
    placed, and our anticipated growth may continue to place, a
    significant strain on our managerial, administrative,
    operational, financial and other resources. We have experienced
    rapid growth over the past three years. We increased our number
    of employees from 532 as of December&#160;31, 2006 to 1,141 as
    of December&#160;31, 2009 and our number of on demand customers
    from 1,469 as of December&#160;31, 2006 to 5,032 as of
    December&#160;31, 2009. We increased the number of product
    centers that we offer from 20 as of December&#160;31, 2006 to 41
    as of December&#160;31, 2009. In addition, in the past, we have
    grown and expect to continue to grow through acquisitions. For
    example, we recently acquired the assets of Domin-8 Enterprise
    Solutions, Inc., which was a holding company for several on
    premise property management systems. Our ability to effectively
    manage our anticipated future growth will depend on, among other
    things, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    successfully supporting and maintaining a broad range of
    solutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    maintaining continuity in our senior management and key
    personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    attracting, retaining, training and motivating our employees,
    particularly technical, customer service and sales personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enhancing our financial and accounting systems and controls;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enhancing our information technology infrastructure;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    managing expanded operations in geographically dispersed
    locations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we do not manage the size, complexity and diverse nature of
    our business effectively, we could experience delayed software
    releases and longer response times for assisting our customers
    with implementation of our solutions and could lack adequate
    resources to support our customers on an ongoing basis, any of
    which could adversely affect our reputation in the market and
    our ability to generate revenue from new or existing customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    nature of our platform is complex and highly integrated and if
    we fail to successfully manage releases or integrate new
    solutions, it could harm our revenues, operating income and
    reputation.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We manage a complex platform of solutions that consists of our
    property management systems and integrated software-enabled
    value-added services. Many of our solutions include a large
    number of product centers that are highly integrated and require
    interoperability with each other and our other solutions, as
    well as products and services of third-party service providers.
    Additionally, we typically deploy new releases of the
</DIV>
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    <BR>
    11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    software underlying our on demand software solutions on a
    monthly or quarterly schedule depending on the solution. Due to
    this complexity and the condensed development cycles under which
    we operate, we may experience errors in our software or
    unexpected performance issues from time to time. For example,
    our solutions may face interoperability difficulties with
    software operating systems or programs being used by our
    customers, or new releases, upgrades, fixes or the integration
    of acquired technologies may have unanticipated consequences on
    the operation and performance of our other solutions. If we
    encounter integration challenges or discover errors in our
    solutions late in our development cycle, it may cause us to
    delay our launch dates. Any major integration or
    interoperability issues or launch delays could have a material
    adverse effect on our revenues, operating income and reputation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business depends substantially on customers renewing and
    expanding their subscriptions for our solutions and any increase
    in customer cancellations or decline in customer renewals or
    expansions would harm our future operating
    results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We generally license our solutions pursuant to customer
    agreements with a term of one year. Our customers have no
    obligation to renew these agreements after their term expires,
    or to renew these agreements at the same or higher annual
    contract value. In addition, under specific circumstances, our
    customers have the right to cancel their customer agreements
    before they expire, for example, in the event of an uncured
    breach by us, or in some circumstances, by paying a cancellation
    fee. In addition, customers often purchase a higher level of
    professional services in the initial term than they do in
    renewal terms to ensure successful activation. As a result, our
    ability to grow is dependent in part on customers purchasing
    additional solutions or professional services after the initial
    term of their customer agreement. Though we maintain and analyze
    historical data with respect to rates of customer renewals,
    upgrades and expansions, those rates may not accurately predict
    future trends in customer renewals. Our customers&#146; renewal
    rates may decline or fluctuate for a number of reasons,
    including, but not limited to, their satisfaction or
    dissatisfaction with our solutions, our pricing, our
    competitors&#146; pricing, reductions in our customers&#146;
    spending levels or reductions in the number of units managed by
    our customers. If our customers cancel their agreements with us
    during their term, do not renew their agreements, renew on less
    favorable terms or do not purchase additional solutions or
    professional services in renewal periods, our revenue may grow
    more slowly than expected or decline and our profitability may
    be harmed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, we have experienced, and expect to continue to
    experience, some level of customer turnover as properties are
    sold and the new owners and managers of properties previously
    owned or managed by our customers do not continue to use our
    solutions. We cannot predict the amount of customer turnover we
    will experience in the future. However, we have experienced
    slightly higher rates of customer turnover with our recently
    acquired Propertyware property management system, primarily
    because it serves smaller properties than our OneSite property
    management system, and we may experience higher levels of
    customer turnover to the extent Propertyware grows as a
    percentage of our revenues. If we experience increased customer
    turnover, our financial performance and operating results could
    be adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also experienced, and expect to continue to experience,
    some number of consolidations of our customers with other
    parties. If one of our customers consolidates with a party who
    is not a customer, our customer may decide not to continue to
    use our solutions. In addition, if one of our customers is
    consolidated with another customer, the acquiring customer may
    have negotiated lower prices for our solutions or may use fewer
    of our solutions than the acquired customer. In each case, the
    consolidated entity may attempt to negotiate lower prices for
    using our solutions as a result of their increased size. These
    consolidations may cause us to lose customers or require us to
    reduce prices as a result of enhanced customer leverage, which
    could cause our financial performance and operating results to
    be adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    we recognize subscription revenue over the term of the
    applicable customer agreement, a decline in subscription
    renewals or new service agreements may not be reflected
    immediately in our operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We generally recognize revenue from customers ratably over the
    terms of their customer agreements, which are typically one
    year. As a result, much of the revenue we report in each quarter
    is deferred revenue from customer agreements entered into during
    previous quarters. Consequently, a decline in new or renewed
</DIV>
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    <BR>
    12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    customer agreements in any one quarter will not be fully
    reflected in our revenue or our results of operations until
    future periods. Accordingly, this revenue recognition model also
    makes it difficult for us to rapidly increase our revenue
    through additional sales in any period, as revenue from new
    customers must be recognized over the applicable subscription
    term.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not be able to continue to add new customers and retain and
    increase sales to our existing customers, which could adversely
    affect our operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our revenue growth is dependent on our ability to continually
    attract new customers while retaining and expanding our service
    offerings to existing customers. Growth in the demand for our
    solutions may be inhibited and we may be unable to sustain
    growth in our customer base for a number of reasons, including,
    but not limited to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to market our solutions in a cost-effective manner
    to new customers or in new vertical or geographic markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to expand our sales to existing customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to build and promote our brand;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    perceived security, reliability, quality or compatibility
    problems with our solutions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial amount of our past revenue growth was derived from
    purchases of upgrades and additional solutions by existing
    customers. Our costs associated with increasing revenue from
    existing customers are generally lower than costs associated
    with generating revenue from new customers. Therefore, a
    reduction in the rate of revenue increase from our existing
    customers, even if offset by an increase in revenue from new
    customers, could reduce our profitability and have a material
    adverse effect on our operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are not able to integrate past or future acquisitions
    successfully, our operating results and prospects could be
    harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have acquired new technology and domain expertise through
    multiple acquisitions, including our most recent acquisition of
    assets from Domin-8 Enterprise Solutions, Inc. in February 2010.
    We expect to continue making acquisitions. The success of our
    future acquisition strategy will depend on our ability to
    identify, negotiate, complete and integrate acquisitions.
    Acquisitions are inherently risky, and any acquisitions we
    complete may not be successful. Any acquisitions we pursue would
    involve numerous risks, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties in integrating and managing the operations and
    technologies of the companies we acquire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    diversion of our management&#146;s attention from normal daily
    operations of our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to maintain the key employees, the key business
    relationships and the reputations of the businesses we acquire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    insufficient revenue to offset our increased expenses associated
    with acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our responsibility for the liabilities of the businesses we
    acquire, including, without limitation, liabilities arising out
    of their failure to maintain effective data security and privacy
    controls prior to the acquisition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties in complying with new regulatory standards to which
    we were not previously subject;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delays in our ability to implement internal standards, controls,
    procedures and policies in the businesses we acquire;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adverse effects of acquisition activity on the key performance
    indicators we use to monitor our performance as a business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our current acquisition strategy includes the acquisition of
    companies that offer property management systems that may not
    interoperate with our software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services. In order to integrate and
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    fully realize the benefits of such acquisitions, we expect to
    build application interfaces that enable such customers to use a
    wide range of our solutions while they continue to use their
    legacy management systems. In addition, over time we expect to
    migrate the acquired company&#146;s customers to our on demand
    property management systems to retain them as customers and to
    be in a position to offer them our solutions on a cost-effective
    basis. These efforts may be unsuccessful or entail costs that
    result in losses or reduced profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may be unable to secure the equity or debt funding necessary
    to finance future acquisitions on terms that are acceptable to
    us, or at all. If we finance acquisitions by issuing equity or
    convertible debt securities, our existing stockholders will
    likely experience ownership dilution, and if we finance future
    acquisitions with debt funding, we will incur interest expense
    and may have to comply with additional financing covenants or
    secure that debt obligation with our assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are unable to successfully develop or acquire and sell
    enhancements and new solutions, our revenue growth will be
    harmed and we may not be able to meet profitability
    expectations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The industry in which we operate is characterized by rapidly
    changing customer requirements, technological developments and
    evolving industry standards. Our ability to attract new
    customers and increase revenue from existing customers will
    depend in large part on our ability to successfully develop,
    bring to market and sell enhancements to our existing solutions
    and new solutions that effectively respond to the rapid changes
    in our industry. Any enhancements or new solutions that we
    develop or acquire may not be introduced to the market in a
    timely or cost-effective manner and may not achieve the broad
    market acceptance necessary to generate the revenue required to
    offset the operating expenses and capital expenditures related
    to development or acquisition. If we are unable to timely
    develop or acquire and sell enhancements and new solutions that
    keep pace with the rapid changes in our industry, our revenue
    will not grow as expected and we may not be able to maintain or
    meet profitability expectations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    derive a substantial portion of our revenue from a limited
    number of our solutions and failure to maintain demand for these
    solutions or diversify our revenue base through increasing
    demand for our other solutions could negatively affect our
    operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, a majority of our revenue was derived from sales
    of our OneSite property management system and our LeasingDesk
    software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    service. If we are unable to develop enhancements to these
    solutions to maintain demand for these solutions or to diversify
    our revenue base by increasing demand for our other solutions,
    our operating results could be negatively impacted.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We use
    a small number of data centers to deliver our solutions. Any
    disruption of service at our facilities could interrupt or delay
    our customers&#146; access to our solutions, which could harm
    our operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The ability of our customers to access our service is critical
    to our business. We currently serve a majority of our customers
    from a primary data center located in Carrollton, Texas. We also
    maintain a secondary data center in downtown Dallas, Texas,
    approximately 20&#160;miles from our primary data center.
    Services of our most recent acquisitions are provided from data
    centers located in Wisconsin, Ohio, Texas and Winnipeg, Canada.
    It is our intent to migrate all data centers to our primary and
    secondary data centers in Carrollton and Dallas. Any event
    resulting in extended interruption or delay in our
    customers&#146; access to our services or their data could harm
    our operating results. There can be no certainty that the
    measures we have taken to eliminate single points of failure in
    the primary and secondary data centers will be effective to
    prevent or minimize interruptions to our operations. Our
    facilities are vulnerable to interruption or damage from a
    number of sources, many of which are beyond our control,
    including, without limitation:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    extended power loss;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    telecommunications failures from multiple telecommunication
    providers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    natural disaster or an act of terrorism;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    software and hardware errors, or failures in our own systems or
    in other systems;
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    network environment disruptions such as computer viruses,
    hacking and similar problems in our own systems and in other
    systems;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    theft and vandalism of equipment;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    actions or events caused by or related to third parties.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The occurrence of an extended interruption of services at one or
    more of our data centers could result in lengthy interruptions
    in our services. Since January&#160;1, 2007, we have experienced
    two extended service interruptions lasting more than eight hours
    caused by equipment and hardware failures. Our service level
    agreements require us to refund a prorated portion of the access
    fee if we fail to satisfy our service level commitments related
    to availability. Refunds for breach of this service level
    commitment have resulted in immaterial payments to customers in
    the past. An extended service outage could result in refunds to
    our customers and harm our customer relationships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We attempt to mitigate these risks through various business
    continuity efforts, including redundant infrastructure, 24 x 7 x
    365 system activity monitoring, backup and recovery procedures,
    use of a secure off-site storage facility for backup media,
    separate test systems and change management and system security
    measures, but our precautions may not protect against all
    potential problems. Our secondary data center is equipped with
    physical space, power, storage and networking infrastructure and
    Internet connectivity to support the solutions we provide in the
    event of the interruption of services at our primary data
    center. Even with this secondary data center, however, our
    operations would be interrupted during the transition process
    should our primary data center experience a failure. Moreover,
    both our primary and secondary data centers are located in the
    greater metropolitan Dallas area. As a result, any regional
    disaster could affect both data centers and result in a material
    disruption of our services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For customers who specifically pay for accelerated disaster
    recovery services, we replicate their data from our primary data
    center to our secondary data center with the necessary stand-by
    servers and disk storage available to provide services within
    two hours of a disaster. This process is currently audited by
    some of our customers who pay for this service on an annual
    basis. For customers who do not pay for such services, our
    current service level agreements with our customers require that
    we provide disaster recovery within 72&#160;hours.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Disruptions at our data centers could cause disruptions in our
    services and data loss or corruption. This could damage our
    reputation, cause us to issue credits to customers, subject us
    to potential liability or costs related to defending against
    claims or cause customers to terminate or elect not to renew
    their agreements, any of which could negatively impact our
    revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    provide service level commitments to our customers, and our
    failure to meet the stated service levels could significantly
    harm our revenue and our reputation.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our customer agreements provide that we maintain certain service
    level commitments to our customers relating primarily to product
    functionality, network uptime, critical infrastructure
    availability and hardware replacement. For example, our service
    level agreements generally require that our solutions are
    available 98% of the time during coverage hours (normally
    6:00&#160;a.m. though 10:00&#160;p.m.&#160;Central time daily)
    365&#160;days per year. If we are unable to meet the stated
    service level commitments, we may be contractually obligated to
    provide customers with refunds or credits. Additionally, if we
    fail to meet our service level commitments a specified number of
    times within a given time frame or for a specified duration, our
    customers may terminate their agreement with us or extend the
    term of their agreement at no additional fee. As a result, a
    failure to deliver services for a relatively short duration
    could cause us to issue credits or refunds to a large number of
    affected customers or result in the loss of customers. In
    addition, we cannot assure you that our customers will accept
    these credits, refunds, termination or extension rights in lieu
    of other legal remedies that may be available to them. Our
    failure to meet our commitments could also result in substantial
    customer dissatisfaction or loss. Because of the loss of future
    revenues through the issuance of credits or the loss of
    customers or other potential liabilities, our revenue could be
    significantly impacted if we cannot meet our service level
    commitments to our customers.
</DIV>
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    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face intense competitive pressures and our failure to compete
    successfully could harm our operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market for our solutions is intensely competitive,
    fragmented and rapidly changing with relatively low barriers to
    entry. With the introduction of new technologies and market
    entrants, we expect competition to intensify in the future.
    Increased competition generally could result in pricing
    pressures, reduced sales and reduced margins. Often we compete
    to sell our solutions against existing systems that our
    potential customers have already made significant expenditures
    to install.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We face competition primarily from point solution providers,
    including traditional software vendors, application service
    providers, or ASPs, and other software as a service, or SaaS,
    providers. Our competitors vary depending on our product and
    service. Our principal competitors in the multi-family
    enterprise resource planning, or ERP, market are AMSI Property
    Management (owned by Infor Global Solutions, Inc.), MRI Software
    LLC and Yardi Systems, Inc. These competitors offer both
    software and ASP delivery platforms. In the last 12&#160;months
    Yardi Systems, Inc. has expanded into other competitive areas
    through smaller acquisitions and internally developed systems.
    In the single-family market, our ERP systems compete primarily
    with AppFolio, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer a number of software-enabled value-added services that
    compete with a disparate and large group of competitors. In the
    applicant screening market, our principal competitors are
    ChoicePoint Inc. (a subsidiary of Reed Elsevier Group plc),
    First Advantage Corporation (a subsidiary of The First American
    Corporation), TransUnion Rental Screening Solutions, Inc. (a
    subsidiary of TransUnion LLC)&#160;and Yardi Systems, Inc.
    (following its recent acquisition of RentGrow Inc., an applicant
    screening provider). In the insurance market, our principal
    competitors are Assurant, Inc. and a number of national
    insurance underwriters (including GEICO Corporation) that market
    renters insurance. There are many smaller screening and
    insurance providers in the risk mitigation area that we
    encounter less frequently, but they nevertheless present a
    competitive presence in the market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the customer relationship management, or CRM, market, we
    compete with providers of contact center and call tracking
    services, including Call Source Inc., Level&#160;One, Inc.,
    Yardi Systems, Inc. (which recently announced its intention to
    build a call center) and numerous regional and local call
    centers. In addition, we compete with lead tracking solution
    providers, including Call Source Inc., eReal Estate Integration,
    Inc., Lead Tracking Solutions (a division of O.C. Concepts,
    Inc.) and Who&#146;s Calling, Inc. In addition, we compete with
    content syndications and reservations systems offered by eReal
    Estate Integration, Inc. and Realty DataTrust Corporation.
    Finally, we compete with companies providing web portal
    services, including Apartments24-7.com, Inc., Ellipse
    Communications, Inc., Property Solutions International, Inc.,
    Spherexx.com and Yardi Systems, Inc. Certain Internet listing
    services also offer websites for their customers, usually as a
    free value add to their listing service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the utility billing market, we compete at a national level
    with American Utility Management, Inc., Conservice, LLC, ista
    North America, Inc., NWP Services Corporation and Yardi Systems,
    Inc. (following its recent acquisition of Energy Billing
    Systems, Inc.). Many other smaller utility billing companies
    compete for smaller rental properties or in regional areas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the revenue management market, we compete with PROS Holdings,
    Inc., The Rainmaker Group, Inc. and Yardi Systems, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the payment processing market, we compete with Chase
    Paymentech Solutions, LLC (a subsidiary of JPMorgan
    Chase&#160;&#038; Co.), First Data Corporation, Fiserv, Inc.,
    MoneyGram International, Inc., NWP Services Corporation,
    Property Solutions International, Inc., RentPayment.com (a
    subsidiary of Yapstone, Inc.), Yardi Systems, Inc. and a number
    of national banking institutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, many of our existing or potential customers have
    developed or may develop their own solutions that may be
    competitive with our solutions. We also may face competition for
    potential acquisition targets from our competitors who are
    seeking to expand their offerings.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to all of our competitors, we compete based on a
    number of factors, including total cost of ownership, ease of
    implementation, product functionality and scope, performance,
    security, scalability and reliability of service, brand and
    reputation, sales and marketing capabilities and financial
    resources. Some of our existing competitors and new market
    entrants may enjoy substantial competitive advantages, such as
    greater name recognition, longer operating histories, a larger
    installed customer base and larger marketing budgets, as well as
    greater financial, technical and other resources. In addition,
    any number of our existing competitors or new market entrants
    could combine or consolidate to become a more formidable
    competitor with greater resources. As a result of such
    competitive advantages, our existing and future competitors may
    be able to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    develop superior products or services, gain greater market
    acceptance and expand their offerings more efficiently or more
    rapidly;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adapt to new or emerging technologies and changes in customer
    requirements more quickly;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    take advantage of acquisition and other opportunities more
    readily;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adopt more aggressive pricing policies and devote greater
    resources to the promotion of their brand and marketing and
    sales of their products and services;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    devote greater resources to the research and development of
    their products and services.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are not able to compete effectively, our operating results
    will be harmed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We integrate our software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services with competitive ERP applications for some of our
    customers. We also provide services to assist in the
    implementation, training, support and hosting with respect to
    the integration of some of our competitors&#146; applications
    with our solutions. We sometimes rely on the cooperation of our
    competitors to implement solutions for our customers. However,
    frequently our reliance on the cooperation of our competitors
    can result in delays in integration. There is no assurance that
    our competitors, even if contractually obligated to do so, will
    continue to cooperate with us or will not prospectively alter
    their obligations to do so. We also occasionally develop
    interfaces between our software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services and competitor ERP systems without their cooperation or
    consent. There is no assurance that our competitors will not
    alter their applications in ways that inhibit integration or
    assert that their intellectual property rights restrict our
    ability to integrate our solutions with their applications. If
    our competitors do not continue to cooperate with us or if they
    alter their applications in ways that inhibit or restrict the
    integration of our solutions and we are not able to find
    alternative ways to integrate our solutions with our
    competitors&#146; applications, our business will be harmed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Variability
    in our sales and activation cycles could result in fluctuations
    in our quarterly results of operations and cause our stock price
    to decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The sales and activation cycles for our solutions, from initial
    contact with a potential customer to contract execution and
    activation, vary widely by customer and solution. We do not
    recognize revenue until the solution is activated. While most of
    our activations follow a set of standard procedures, a
    customer&#146;s priorities may delay activation and our ability
    to recognize revenue, which could result in fluctuations in our
    quarterly operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Many
    of our customers are price sensitive, and if market dynamics
    require us to change our pricing model or reduce prices, our
    operating results will be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many of our existing and potential customers are price
    sensitive, and recent adverse global economic conditions have
    contributed to increased price sensitivity in the multi-family
    housing market and the other markets that we serve. As market
    dynamics change, or as new and existing competitors introduce
    more competitive pricing or pricing models, we may be unable to
    renew our agreements with existing customers or customers of the
    businesses we acquire or attract new customers at the same price
    or based on the same pricing model as previously used. As a
    result, it is possible that we may be required to change our
    pricing model, offer price incentives or reduce our prices,
    which could harm our revenue, profitability and operating
    results.
</DIV>
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    <BR>
    17
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    do not effectively expand and train our sales force, we may be
    unable to add new customers or increase sales to our existing
    customers and our business will be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continue to be substantially dependent on our sales force to
    obtain new customers and to sell additional solutions to our
    existing customers. We believe that there is significant
    competition for sales personnel with the skills and technical
    knowledge that we require. Our ability to achieve significant
    revenue growth will depend, in large part, on our success in
    recruiting, training and retaining sufficient numbers of sales
    personnel to support our growth. New hires require significant
    training and, in most cases, take significant time before they
    achieve full productivity. Our recent hires and planned hires
    may not become as productive as we expect, and we may be unable
    to hire or retain sufficient numbers of qualified individuals in
    the markets where we do business or plan to do business. If we
    are unable to hire and train sufficient numbers of effective
    sales personnel, or the sales personnel are not successful in
    obtaining new customers or increasing sales to our existing
    customer base, our business will be harmed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Material
    defects or errors in the software we use to deliver our
    solutions could harm our reputation, result in significant costs
    to us and impair our ability to sell our
    solutions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The software applications underlying our solutions are
    inherently complex and may contain material defects or errors,
    particularly when first introduced or when new versions or
    enhancements are released. We have from time to time found
    defects in the software applications underlying our solutions
    and new errors in our existing solutions may be detected in the
    future. Any errors or defects that cause performance problems or
    service interruptions could result in:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a reduction in new sales or subscription renewal rates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unexpected sales credits or refunds to our customers, loss of
    customers and other potential liabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delays in customer payments, increasing our collection reserve
    and collection cycle;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    diversion of development resources and associated costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    harm to our reputation and brand;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unanticipated litigation costs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, the costs incurred in correcting defects or errors
    could be substantial and could adversely affect our operating
    results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to effectively manage the development of our solutions and data
    processing efforts outside the United States could harm our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success depends, in part, on our ability to process high
    volumes of customer data and enhance existing solutions and
    develop new solutions rapidly and cost effectively. We currently
    maintain an office in Hyderabad, India where we employ
    development and data processing personnel. We believe that
    performing these activities in Hyderabad increases the
    efficiency and decreases the costs of our development and data
    processing efforts. Managing and staffing international
    operations requires management&#146;s attention and financial
    resources. The level of cost-savings achieved by our
    international operations may not exceed the amount of investment
    and additional resources required to manage and operate these
    international operations. Additionally, if we experience
    problems with our workforce or facilities in Hyderabad, our
    business could be harmed due to delays in product release
    schedules or data processing services.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    rely on third-party technologies and services that may be
    difficult to replace or that could cause errors, failures or
    disruptions of our service, any of which could harm our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We rely on a number of third-party providers, including, but not
    limited to, computer hardware and software vendors and database
    providers, to deliver our solutions. We currently utilize
    equipment, software and services from Avaya Inc., Cisco Systems,
    Inc., Dell Inc., EMC Corporation, Microsoft Corporation, Oracle
    Corporation and salesforce.com, inc., as well as many other
    smaller providers. Our OneSite Accounting
</DIV>
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    <BR>
    18
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    service relies on a SaaS-based accounting system developed and
    maintained by a third-party service provider. We host this
    application in our data centers and provide supplemental
    development resources to extend this accounting system to meet
    the unique requirements of the rental housing industry. Our
    shared cloud portfolio reporting service will utilize software
    licensed from IBM. We expect to utilize additional service
    providers as we expand our platform. Although the third-party
    technologies and services that we require are generally
    commercially available from a number of providers, such
    technologies and services may not continue to be available on
    commercially reasonable terms, or at all. Any loss of the right
    to use any of these technologies or services could result in
    delays in the provisioning of our solutions until alternative
    technology is either developed by us, or, if available, is
    identified, obtained and integrated, and such delays could harm
    our business. It also may be time consuming and costly to enter
    into new relationships. Additionally, any errors or defects in
    the third-party technologies we utilize or delays or
    interruptions in the third-party services we rely on could
    result in errors, failures or disruptions of our services, which
    also could harm our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    depend upon third-party service providers for important payment
    processing functions. If these third-party service providers do
    not fulfill their contractual obligations or choose to
    discontinue their services, our business and operations could be
    disrupted and our operating results would be
    harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We rely on several large payment processing organizations to
    enable us to provide payment processing services to our
    customers, including electronic funds transfers, or EFT, check
    services, bank card authorization, data capture, settlement and
    merchant accounting services and access to various reporting
    tools. These organizations include Paymentech, LLC, Jack
    Henry&#160;&#038; Associates, Inc., JPMorgan Chase Bank, N.A.
    and Wells Fargo, N.A. We also rely on third-party hardware
    manufacturers to manufacture the check scanning hardware our
    customers utilize to process transactions. Some of these
    organizations and service providers are competitors who also
    directly or indirectly sell payment processing services to
    customers in competition with us. With respect to these
    organizations and service providers, we have significantly less
    control over the systems and processes than if we were to
    maintain and operate them ourselves. In some cases, functions
    necessary to our business are performed on proprietary
    third-party systems and software to which we have no access. We
    also generally do not have long-term contracts with these
    organizations and service providers. Accordingly, the failure of
    these organizations and service providers to renew their
    contracts with us or fulfill their contractual obligations and
    perform satisfactorily could result in significant disruptions
    to our operations and adversely affect operating results. In
    addition, businesses that we have acquired, or may acquire in
    the future, typically rely on other payment processing service
    providers. We may encounter difficulty converting payment
    processing services from these service providers to our payment
    processing platform. If we are required to find an alternative
    source for performing these functions, we may have to expend
    significant money, time and other resources to develop or obtain
    an alternative, and if developing or obtaining an alternative is
    not accomplished in a timely manner and without significant
    disruption to our business, we may be unable to fulfill our
    responsibilities to customers or meet their expectations, with
    the attendant potential for liability claims, damage to our
    reputation, loss of ability to attract or maintain customers and
    reduction of our revenue or profits.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face a number of risks in our payment processing business that
    could result in a reduction in our revenues and
    profits.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our payment processing services, we collect
    resident funds and subsequently remit these resident funds to
    our customers after varying holding periods. These funds are
    settled through our sponsor bank, and in the case of EFT, our
    Originating Depository Financial Institution, or ODFI.
    Currently, we rely on Wells Fargo, N.A. and JPMorgan Chase Bank,
    N.A. as our sponsor banks. In 2010, we expect to enter into
    similar sponsor bank relationships with one or more other
    national banking institutions. The custodial balances that we
    hold for our customers at our sponsor bank are identified in our
    consolidated balance sheets as restricted cash and the
    corresponding liability for these custodial balances is
    identified as customer deposits. Our payment
</DIV>
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    <BR>
    19
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    processing business and related maintenance of custodial
    accounts subjects us to a number of risks, including, but not
    limited to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    liability for customer costs related to disputed or fraudulent
    merchant transactions if those amounts exceed the amount of the
    customer reserves we have established to make such payments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limits on the amount of custodial balances that any single ODFI
    will underwrite;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reliance on bank sponsors and card payment processors and other
    service providers to process bank card transactions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure by us or our bank sponsors to adhere to applicable laws
    and regulatory requirements or the standards of the Visa and
    MasterCard credit card associations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    incidences of fraud or a security breach or our failure to
    comply with required external audit standards;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to increase our fees at times when Visa and
    MasterCard increase their merchant transaction processing fees.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of these risks related to our payment processing business
    were to occur, our business or financial results could be
    negatively affected. Additionally, with respect to the
    processing of EFTs, we are exposed to financial risk. EFTs
    between a resident and our customer may be returned for
    insufficient funds, or NSFs, or rejected. These NSFs and rejects
    are charged back to the customer by us. However, if we or our
    sponsor banks are unable to collect such amounts from the
    customer&#146;s account or if the customer refuses or is unable
    to reimburse us for the chargeback, we bear the risk of loss for
    the amount of the transfer. While we have not experienced
    material losses resulting from chargebacks in the past, there
    can be no assurance that we will not experience significant
    losses from chargebacks in the future. Any increase in
    chargebacks not paid by our customers may adversely affect our
    financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If our
    security measures are breached and unauthorized access is
    obtained to our customers&#146; or their residents&#146; data,
    we may incur significant liabilities, our solutions may be
    perceived as not being secure and customers may curtail or stop
    using our solutions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The solutions we provide involve the collection, storage and
    transmission of confidential personal and proprietary
    information regarding our customers and our customers&#146;
    current and prospective residents. Specifically, we collect,
    store and transmit a variety of customer data including, but not
    limited to, the demographic information and payment histories of
    our customers&#146; prospective and current residents.
    Additionally, we collect and transmit sensitive financial data
    such as credit card and bank account information. If our
    security measures are breached as a result of third-party
    actions or any employees&#146; or contractors&#146; errors or
    malfeasance or otherwise, and someone obtains unauthorized
    access to this information, we could incur significant liability
    to our customers and to their prospective or current residents
    or significant fines and sanctions by processing networks or
    governmental bodies, any of which could result in harm to our
    business and damage to our reputation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also rely upon our customers as users of our system to
    promote security of the system and the data within it, such as
    administration of customer-side access credentialing and control
    of customer-side display of data. On occasion, our customers
    have failed to perform these activities in such a manner as to
    prevent unauthorized access to data. To date, these breaches
    have not resulted in claims against us or in material harm to
    our business, but we cannot be certain that the failure of our
    customers in future periods to perform these activities will not
    result in claims against us, which could expose us to potential
    litigation and harm to our reputation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no certainty that the measures we have taken to
    protect the privacy and integrity of our customers&#146; and
    their current or prospective residents&#146; data are adequate
    to prevent or remedy unauthorized access to our system. Because
    techniques used to obtain unauthorized access to, or to
    sabotage, systems change frequently and generally are not
    recognized until launched against a target, we may be unable to
    anticipate these techniques or to implement adequate preventive
    measures. Experienced computer programmers seeking to intrude or
    cause harm, or hackers, may attempt to penetrate our service
    infrastructure from time to
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    time. Although we have not experienced any material security
    breaches to date, a hacker who is able to penetrate our service
    infrastructure could misappropriate proprietary or confidential
    information or cause interruptions in our services. We might be
    required to expend significant capital and resources to protect
    against, or to alleviate, problems caused by hackers, and we may
    not have a timely remedy against a hacker who is able to
    penetrate our service infrastructure. In addition to purposeful
    breaches, the inadvertent transmission of computer viruses could
    expose us to security risks. If an actual or perceived breach of
    our security occurs or if our customers and potential customers
    perceive vulnerabilities, the market perception of the
    effectiveness of our security measures could be harmed and we
    could lose sales and customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are unable to cost-effectively scale or adapt our existing
    architecture to accommodate increased traffic, technological
    advances or changing customer requirements, our operating
    results could be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we continue to increase our customer base, the number of
    users accessing our on demand software solutions over the
    Internet will continue to increase. Increased traffic could
    result in slow access speeds. Since our customer agreements
    typically include service availability commitments, slow access
    speeds or our failure to accommodate increased traffic could
    result in breaches of our customer agreements. In addition, the
    market for our solutions is characterized by rapid technological
    advances and changes in customer requirements. In order to
    accommodate increased traffic and respond to technological
    advances and evolving customer requirements, we expect that we
    will be required to make future investments in our network
    architecture. If we do not implement future upgrades to our
    network architecture cost-effectively, or if we experience
    prolonged delays or unforeseen difficulties in connection with
    upgrading our network architecture, our service quality may
    suffer and our operating results could be harmed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    certain solutions we provide depend on access to customer data,
    decreased access to this data or the failure to comply with
    applicable privacy laws and regulations or address privacy
    concerns applicable to such data could harm our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain of our solutions depend on our continued access to our
    customers&#146; data regarding their prospective and current
    residents, including data compiled by other third-party service
    providers who collect and store data on behalf of our customers.
    Federal and state governments and agencies have adopted, or are
    considering adopting, laws and regulations regarding the
    collection, use and disclosure of such data. Any decrease in the
    availability of such data from our customers, or other third
    parties that collect and store such data on behalf of our
    customers, and the costs of compliance with, and other burdens
    imposed by, applicable legislative and regulatory initiatives
    may limit our ability to collect, aggregate or use this data.
    Any limitations on our ability to collect, aggregate or use such
    data could reduce demand for certain of our solutions.
    Additionally, any inability to adequately address privacy
    concerns, even if unfounded, or comply with applicable privacy
    laws, regulations and policies, could result in liability to us
    or damage to our reputation and could inhibit sales and market
    acceptance of our solutions and harm our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    market for on demand software solutions in the rental housing
    industry is new and continues to develop, and if it does not
    develop further or develops more slowly than we expect, our
    business will be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market for on demand software solutions in the rental
    housing industry delivered via the Internet through a web
    browser is rapidly growing but still relatively immature
    compared to the market for traditional on premise software
    installed on a customer&#146;s local personal computer or
    server. It is uncertain whether the on demand delivery model
    will achieve and sustain high levels of demand and market
    acceptance, making our business and future prospects difficult
    to evaluate and predict. While our existing customer base has
    widely accepted this new model, our future success will depend,
    to a large extent, on the willingness of our potential customers
    to choose on demand software solutions for business processes
    that they view as critical. Many of our potential customers have
    invested substantial effort and financial resources to integrate
    traditional enterprise software into their businesses and may be
    reluctant or unwilling to switch to on demand software
    solutions. Some businesses may be reluctant or unwilling to use
    on demand software solutions because they have concerns
    regarding the risks associated with security capabilities,
    reliability and availability, among other
</DIV>
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    <BR>
    21
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    things, of the on demand delivery model. If potential customers
    do not consider on demand software solutions to be beneficial,
    then the market for these solutions may not further develop, or
    it may develop more slowly than we expect, either of which would
    adversely affect our operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Economic
    trends that affect the rental housing market may have a negative
    effect on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our customers include a range of organizations whose success is
    intrinsically linked to the rental housing market. Economic
    trends that negatively affect the rental housing market may
    adversely affect our business. The recent downturn in the global
    economy has caused volatility in the real estate markets,
    generally, including the rental housing market, and increases in
    the rates of mortgage defaults and bankruptcy. Continued
    instability or downturns affecting the rental housing market may
    have a material adverse effect on our business, prospects,
    financial condition and results of operations by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reducing the number of occupied sites and units on which we earn
    revenue;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preventing our customers from expanding their businesses and
    managing new properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    causing our customers to reduce spending on our solutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    subjecting us to increased pricing pressure in order to add new
    customers and retain existing customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    causing our customers to switch to lower-priced solutions
    provided by our competitors or internally-developed solutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delaying or preventing our collection of outstanding accounts
    receivable;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    causing payment processing losses related to an increase in
    customer insolvency.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    require additional capital to support business growth, and this
    capital might not be available.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to continue to make investments to support our
    business growth and may require additional funds to respond to
    business challenges or opportunities, including the need to
    develop new solutions or enhance our existing solutions, enhance
    our operating infrastructure or acquire businesses and
    technologies. Accordingly, we may need to engage in equity or
    debt financings to secure additional funds. If we raise
    additional funds through further issuances of equity or
    convertible debt securities, our existing stockholders could
    suffer significant dilution, and any new equity securities we
    issue could have rights, preferences and privileges superior to
    those of holders of our common stock. Debt financing secured by
    us in the future could involve additional restrictive covenants
    relating to our capital raising activities and other financial
    and operational matters, which may make it more difficult for us
    to obtain additional capital and to pursue business
    opportunities, including potential acquisitions. In addition, we
    may not be able to obtain additional financing on terms
    favorable to us, if at all. If we are unable to obtain adequate
    financing or financing on terms satisfactory to us when we
    require it, our ability to continue to support our business
    growth and to respond to business challenges or opportunities
    could be significantly limited.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    debt obligations contain restrictions that impact our business
    and expose us to risks that could adversely affect our liquidity
    and financial condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;3, 2009, we entered into a credit facility
    with Wells Fargo Capital Finance, LLC (formerly Wells Fargo
    Foothill, LLC)&#160;and Comerica Bank. As amended, the credit
    facility provides for borrowings of up to $55.0&#160;million,
    including a revolving facility of up to $10.0&#160;million,
    which is subject to a borrowing base and provides for a sublimit
    of $5.0&#160;million for the issuance of letters of credit on
    our behalf, and a term loan facility of $45.0&#160;million. At
    December&#160;31, 2009, we had no outstanding indebtedness under
    the revolving facility and approximately $33.7&#160;million of
    outstanding indebtedness under the term loan facility. On
    February&#160;10, 2010, we borrowed an additional
    $10.0&#160;million under the term loan facility in connection
    with an acquisition. Our interest expense in 2009 for the credit
    facility was approximately $0.9&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Advances under the credit facility may be voluntarily prepaid,
    and must be prepaid with the proceeds of certain dispositions,
    extraordinary receipts, indebtedness and equity, with excess
    cash flow and in full upon a
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    change in control. Our lenders have waived the requirement under
    the credit facility that we prepay the credit facility with the
    proceeds of this offering. However, this waiver will expire if
    we do not complete this offering by December&#160;31, 2010.
    Voluntary prepayments and mandatory prepayments from the
    proceeds of indebtedness and equity are subject to a prepayment
    premium of 2.0% in the first year of the credit facility, which
    is reduced to 1.5% in the event the credit facility is
    terminated and prepaid in full from the proceeds of this
    offering, 1.0% in the second year of the facility, 0.5% in the
    third year of the facility and 0% thereafter. Such prepayments
    will be applied first to reduce the term loan, and then to
    reduce availability under the revolver.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our obligations under the loan facility are secured by
    substantially all of our property. All of our existing and
    future domestic subsidiaries are required to guaranty our
    obligations under the credit facility, other than certain
    immaterial subsidiaries and our payment processing subsidiary,
    RealPage Payment Processing Services, Inc. Our foreign
    subsidiaries may, under certain circumstances, be required to
    guaranty our obligations under the credit facility. Such
    guarantees by existing and future subsidiaries are and will be
    secured by substantially all of the property of such
    subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our credit facility contains customary covenants, which limit
    our and certain of our subsidiaries&#146; ability to, among
    other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    incur additional indebtedness or guarantee indebtedness of
    others;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    create liens on our assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into mergers or consolidations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dispose of assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prepay indebtedness or make changes to our governing documents
    and certain of our agreements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pay dividends and make other distributions on our capital stock,
    and redeem and repurchase our capital stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make investments, including acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into transactions with affiliates;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make capital expenditures.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our credit facility also contains customary affirmative
    covenants, including a fixed charge coverage ratio and a senior
    leverage ratio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The credit facility contains customary events of default,
    subject to customary cure periods for certain defaults, that
    include, among others, non-payment defaults, covenant defaults,
    material judgment defaults, bankruptcy and insolvency defaults,
    cross-defaults to certain other material indebtedness and
    inaccuracy of representations and warranties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we experience a decline in cash flow due to any of the
    factors described in this &#147;Risk Factors&#148; section or
    otherwise, we could have difficulty paying interest and
    principal amounts due on our indebtedness and meeting the
    financial covenants set forth in our credit facility. If we are
    unable to generate sufficient cash flow or otherwise obtain the
    funds necessary to make required payments under our credit
    facility, or if we fail to comply with the requirements of our
    indebtedness, we could default under our credit facility. Any
    such default that is not cured or waived could result in the
    acceleration of the obligations under the credit facility, an
    increase in the applicable interest rate under the credit
    facility and a requirement that our subsidiaries that have
    guaranteed the credit facility pay the obligations in full, and
    would permit our lender to exercise remedies with respect to all
    of the collateral that is securing the credit facility,
    including substantially all of our and our subsidiary
    guarantors&#146; assets. Any such default could have a material
    adverse effect on our liquidity and financial condition.
</DIV>

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    Even if we comply with all of the applicable covenants, the
    restrictions on the conduct of our business could adversely
    affect our business by, among other things, limiting our ability
    to take advantage of financings, mergers, acquisitions and other
    corporate opportunities that may be beneficial to the business.
    Even if the
</DIV>
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    credit facility were terminated, additional debt we could incur
    in the future may subject us to similar or additional covenants.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have substantial equipment lease obligations, which
    totaled approximately $2.1&#160;million as of December&#160;31,
    2009. If we are unable to generate sufficient cash flow from our
    operations or cash from other sources in order to meet the
    payment obligations under these equipment leases, we may lose
    the right to possess and operate the equipment used in our
    business, which would substantially impair our ability to
    provide our solutions and could have a material adverse effect
    on our liquidity or results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Assertions
    by a third party that we infringe its intellectual property,
    whether successful or not, could subject us to costly and
    time-consuming litigation or expensive licenses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The software and technology industries are characterized by the
    existence of a large number of patents, copyrights, trademarks
    and trade secrets and by frequent litigation based on
    allegations of infringement, misappropriation, misuse and other
    violations of intellectual property rights. We have received in
    the past, and may receive in the future, communications from
    third parties claiming that we have infringed or otherwise
    misappropriated the intellectual property rights of others. Our
    technologies may not be able to withstand any third-party claims
    against their use. Since we currently have no patents, we may
    not use patent infringement as a defensive strategy in such
    litigation. Additionally, although we have licensed from other
    parties proprietary technology covered by patents, we cannot be
    certain that any such patents will not be challenged,
    invalidated or circumvented. If such patents are invalidated or
    circumvented, this may allow existing and potential competitors
    to develop products and services that are competitive with, or
    superior to, our solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many of our customer agreements require us to indemnify our
    customers for certain third-party intellectual property
    infringement claims, which could increase our costs as a result
    of defending such claims and may require that we pay damages if
    there were an adverse ruling or settlement related to any such
    claims. These types of claims could harm our relationships with
    our customers, may deter future customers from purchasing our
    solutions or could expose us to litigation for these claims.
    Even if we are not a party to any litigation between a customer
    and a third party, an adverse outcome in any such litigation
    could make it more difficult for us to defend our intellectual
    property in any subsequent litigation in which we are a named
    party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any intellectual property rights claim against us or our
    customers, with or without merit, could be time-consuming,
    expensive to litigate or settle and could divert
    management&#146;s attention and our financial resources. Any
    such litigation could force us to stop selling, incorporating or
    using our solutions that include the challenged intellectual
    property or redesign those solutions that use the technology. In
    addition, we may have to pay damages if we are found to be in
    violation of a third party&#146;s rights. We may have to procure
    a license for the technology, which may not be available on
    reasonable terms, if at all, may significantly increase our
    operating expenses or may require us to restrict our business
    activities in one or more respects. As a result, we may also be
    required to develop alternative non-infringing technology, which
    could require significant effort and expense. We cannot assure
    you we would be able to develop alternative solutions or, if
    alternative solutions were developed, that they would perform as
    required or be accepted in the relevant markets. In some
    instances, if we are unable to offer non-infringing technology,
    or obtain a license for such technology, we will be required to
    refund some or the entire license fee paid for the infringing
    technology to our customers.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our exposure to risks associated with the use of intellectual
    property may be increased as a result of acquisitions, as we
    have a lower level of visibility into the development process
    with respect to acquired technology or the care taken to
    safeguard against infringement risks. Third parties may make
    infringement and similar or related claims after we have
    acquired technology that had not been asserted prior to our
    acquisition.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Any
    failure to protect and successfully enforce our intellectual
    property rights could compromise our proprietary technology and
    impair our brands.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success depends significantly on our ability to protect our
    proprietary rights to the technologies we use in our solutions.
    If we are unable to protect our proprietary rights adequately,
    our competitors could use the intellectual property we have
    developed to enhance their own products and services, which
    could harm our business. We rely on a combination of copyright,
    service mark, trademark and trade secret laws, as well as
</DIV>
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    confidentiality procedures and contractual restrictions, to
    establish and protect our proprietary rights, all of which
    provide only limited protection. We currently have no issued
    patents or pending patent applications and may be unable to
    obtain patent protection in the future. In addition, if any
    patents are issued in the future, they may not provide us with
    any competitive advantages, may not be issued in a manner that
    gives us the protection that we seek and may be successfully
    challenged by third parties. Unauthorized parties may attempt to
    copy or otherwise obtain and use the technologies underlying our
    solutions. Monitoring unauthorized use of our technologies is
    difficult, and we do not know whether the steps we have taken
    will prevent unauthorized use of our technology. If we are
    unable to protect our proprietary rights, we may find ourselves
    at a competitive disadvantage to others who have not incurred
    the substantial expense, time and effort required to create
    similar innovative products.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot assure you that any future service mark or trademark
    registrations will be issued for pending or future applications
    or that any registered service marks or trademarks will be
    enforceable or provide adequate protection of our proprietary
    rights. If we are unable to secure new marks, maintain already
    existing marks and enforce the rights to use such marks against
    unauthorized third-party use, our ability to brand, identify and
    promote our solutions in the marketplace could be impaired,
    which could harm our business.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We customarily enter into agreements with our employees,
    contractors and parties with whom we do business to limit access
    to and disclosure of our proprietary information. The steps we
    have taken, however, may not prevent unauthorized use or the
    reverse engineering of our technology. Moreover, we may be
    required to release the source code of our software to third
    parties under certain circumstances. For example, some of our
    customer agreements provide that if we cease to maintain or
    support a certain solution without replacing it with a successor
    solution, then we may be required to release the source code of
    the software underlying such solution. In addition, others may
    independently develop technologies that are competitive to ours
    or infringe our intellectual property. Enforcement of our
    intellectual property rights also depends on our legal actions
    being successful against these infringers, but these actions may
    not be successful, even when our rights have been infringed.
    Furthermore, the legal standards relating to the validity,
    enforceability and scope of protection of intellectual property
    rights in Internet-related industries are uncertain and still
    evolving.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, if we sell our solutions internationally in the
    future, effective patent, trademark, service mark, copyright and
    trade secret protection may not be available or as robust in
    every country in which our solutions are available. As a result,
    we may not be able to effectively prevent competitors outside
    the United States from infringing or otherwise misappropriating
    our intellectual property rights, which could reduce our
    competitive advantage and ability to compete or otherwise harm
    our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Current
    and future litigation against us could be costly and time
    consuming to defend.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are from time to time subject to legal proceedings and claims
    that arise in the ordinary course of business, including claims
    brought by our customers in connection with commercial disputes,
    claims brought by our customers&#146; current or prospective
    residents, including potential class action lawsuits based on
    asserted statutory or regulatory violations, and employment
    claims made by our current or former employees. Litigation,
    regardless of its outcome, may result in substantial costs and
    may divert management&#146;s attention and our resources, which
    may harm our business, overall financial condition and operating
    results. In addition, legal claims that have not yet been
    asserted against us may be asserted in the future. Insurance may
    not cover such claims, may not be sufficient for one or more
    such claims and may not continue to be available on terms
    acceptable to us, or at all. A claim brought against us that is
    uninsured or underinsured could result in unanticipated costs,
    thereby harming our operating results.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;15, 2009, a prospective resident of one of our
    customers filed a class action lawsuit styled <I>Minor&#160;v.
    RealPage, Inc.</I> against us in the U.S.&#160;District Court
    for the Central District of California, which was transferred to
    the United States District Court for the Eastern District of
    Texas
    <FONT style="white-space: nowrap">(No.&#160;4:09CV-00439).</FONT>
    The plaintiff has alleged two individual claims and three
    <FONT style="white-space: nowrap">class-based</FONT>
    causes of action against us. Individually, the plaintiff alleges
    that we (i)&#160;willfully failed to employ reasonable
    procedures to ensure the maximum accuracy of our resident
    screening reports as required by 15&#160;U.S.C.
    &#167;&#160;1681e(b) and, in the alternative,
    (ii)&#160;negligently (within the meaning of 15&#160;U.S.C.
    &#167;&#160;1681o(a)) failed to employ reasonable procedures to
    ensure the maximum
</DIV>
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    accuracy of our resident screening reports, as required by
    15&#160;U.S.C. &#167;&#160;1681e(b), in each case stemming from
    our provision of a report that allegedly included inaccurate
    criminal conviction information. The plaintiff seeks actual,
    statutory and punitive damages on her individual claims. In her
    capacity as the putative class representative, the plaintiff
    also alleges that we: (i)&#160;willfully failed to provide
    legally mandated disclosures upon a consumer&#146;s request
    inconsistent with 15&#160;U.S.C. &#167;&#160;1681g;
    (ii)&#160;willfully failed to provide prompt notice of
    consumers&#146; disputes to the data furnishers who provided us
    with the information whose accuracy was in question, as required
    by 15&#160;U.S.C. &#167;&#160;1681i(a)(2); and
    (iii)&#160;willfully failed to provide prompt notice of
    consumers&#146; disputes to the consumer reporting agencies
    providing us with the information whose accuracy was in
    question, as required by 15&#160;U.S.C. &#167;&#160;1681i(f).
    She seeks statutory and punitive damages, a declaration that our
    practices and procedures are in violation of the Fair Credit
    Reporting Act and attorneys&#146; fees and costs. Because this
    lawsuit is at an early stage, it is not possible to predict its
    outcome. We believe that we have meritorious defenses to the
    claims in this case and intend to defend it vigorously. See
    &#147;Business&#160;&#151; Legal Proceedings&#148; for further
    information regarding this claim.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;4, 2008, we were named as a defendant in a class
    action lawsuit styled <I>Taylor, et al.&#160;v. Acxiom Corp.,
    et&#160;al.</I> filed in the U.S.&#160;District Court for the
    Eastern District of Texas
    <FONT style="white-space: nowrap">(No.&#160;2:07-CV-00001).</FONT>
    Plaintiffs alleged that we obtained and held motor vehicle
    records in bulk from the State of Texas, an allegedly improper
    purpose in violation of the federal Driver&#146;s Privacy
    Protection Act, or the DPPA. In addition, the plaintiffs alleged
    that we obtained these records for the purpose of re-selling
    them, another allegedly improper purpose in violation of the
    DPPA. Plaintiffs further purported to represent a putative class
    of approximately 20.0&#160;million individuals affected by the
    defendants&#146; alleged DPPA violations. They sought statutory
    damages of $2,500 per each violation of the DPPA, punitive
    damages and an order requiring defendants to destroy information
    obtained in violation of the DPPA. In September 2008, the
    Eastern District of Texas dismissed plaintiffs&#146; complaint
    for failure to state a claim. The plaintiffs subsequently
    appealed the dismissal to the U.S.&#160;Court of Appeals for the
    Fifth Circuit. In November 2009, the Fifth Circuit heard oral
    argument on the appeal. A decision has not yet been rendered. We
    believe that the claims are without merit, but there are no
    assurances as to the outcome of the litigation. See
    &#147;Business&#160;&#151; Legal Proceedings&#148; for further
    information regarding this claim.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2010, the District Attorney of Ventura County,
    California issued an administrative subpoena to us seeking
    certain information related to our provision of utility billing
    services in the State of California. A representative of the
    District Attorney has informed us that the subpoena was issued
    in connection with a general investigation of industry practices
    with respect to utility billing in California. Utility billing
    in California is subject to regulation by state law and various
    state administrative agencies, including the California Public
    Utility Commission, or the CPUC, and the Division of Weights and
    Measures, or the DWM. We have provided the District Attorney
    with the information requested in the subpoena. As of
    April&#160;28, 2010, the District Attorney&#146;s office has not
    initiated an administrative or other enforcement action against
    us, nor have they asserted any violations of the applicable
    regulations by us. Given the early stage of this investigation,
    it is difficult to predict its outcome and whether the District
    Attorney will pursue an administrative or other enforcement
    action against us in the State of California and what the result
    of any such action would be. However, penalties or assessments
    of violations of regulations promulgated by the CPUC or DWM may
    be calculated on a per occurrence basis. Due to the large number
    of billing transactions we process for our customers in
    California, our potential liability in an enforcement action
    could be significant. If the District Attorney ultimately
    pursues an administrative or other enforcement action against
    us, we believe that we have meritorious defenses to the
    potential claims and would defend them vigorously. However, even
    if we were successful in defending against such claims, the
    proceedings could result in significant costs and divert
    management&#146;s attention. See &#147;Business&#160;&#151;
    Legal Proceedings&#148; for further information regarding this
    claim.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    could be sued for contract or product liability claims, and such
    lawsuits may disrupt our business, divert management&#146;s
    attention and our financial resources or have an adverse effect
    on our financial results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We provide warranties to customers of certain of our solutions
    relating primarily to product functionality, network uptime,
    critical infrastructure availability and hardware replacement.
    General errors, defects,
</DIV>
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    inaccuracies or other performance problems in the software
    applications underlying our solutions or inaccuracies in the
    data we provide to our customers could result in financial or
    other damages to our customers. There can be no assurance that
    any limitations of liability set forth in our contracts would be
    enforceable or would otherwise protect us from liability for
    damages. We maintain general liability insurance coverage,
    including coverage for errors and omissions, in amounts and
    under terms that we believe are appropriate. There can be no
    assurance that this coverage will continue to be available on
    terms acceptable to us, or at all, or in sufficient amounts to
    cover one or more large product liability claims, or that the
    insurer will not deny coverage for any future claim. The
    successful assertion of one or more large product liability
    claims against us that exceeds available insurance coverage,
    could have a material adverse effect on our business, prospects,
    financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    fail to develop our brands cost-effectively, our financial
    condition and operating results could be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We market our solutions under discrete brand names. We believe
    that developing and maintaining awareness of our brands is
    critical to achieving widespread acceptance of our existing and
    future solutions and is an important element in attracting new
    customers and retaining our existing customers. Additionally, we
    believe that developing these brands in a cost-effective manner
    is critical in meeting our expected margins. In the past, our
    efforts to build our brands have involved significant expenses
    and we intend to continue to make expenditures on brand
    promotion. Brand promotion activities may not yield increased
    revenue, and even if they do, any increased revenue may not
    offset the expenses we incurred in building our brands. If we
    fail to cost-effectively build and maintain our brands, we may
    fail to attract new customers or retain our existing customers,
    and our financial condition and results of operations could be
    harmed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    fail to maintain proper and effective internal controls, our
    ability to produce accurate and timely financial statements
    could be impaired, which could harm our operating results, our
    ability to operate our business and investors&#146; views of
    us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ensuring that we have adequate internal financial and accounting
    controls and procedures in place so that we can produce accurate
    financial statements on a timely basis is a costly and
    time-consuming effort that needs to be re-evaluated frequently.
    Our internal control over financial reporting is a process
    designed to provide reasonable assurance regarding the
    reliability of financial reporting and the preparation of
    financial statements in accordance with GAAP. We are in the
    process of documenting, reviewing and improving our internal
    controls and procedures for compliance with Section&#160;404 of
    the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, which
    requires annual management assessment of the effectiveness of
    our internal control over financial reporting and a report by
    our independent auditors. Both we and our independent auditors
    will be testing our internal controls in connection with the
    audit of our financial statements for the year ending
    December&#160;31, 2011 and, as part of that testing, may
    identify areas for further attention and improvement. If we fail
    to maintain proper and effective internal controls, our ability
    to produce accurate and timely financial statements could be
    impaired, which could harm our operating results, harm our
    ability to operate our business and reduce the trading price of
    our stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in, or errors in our interpretations and applications of,
    financial accounting standards or practices may cause adverse,
    unexpected financial reporting fluctuations and affect our
    reported results of operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A change in accounting standards or practices can have a
    significant effect on our reported results and may even affect
    our reporting of transactions completed before the change is
    effective. New accounting pronouncements and varying
    interpretations of accounting pronouncements have occurred and
    may occur in the future. Changes to existing rules or the
    questioning of current practices or errors in our
    interpretations and applications of financial accounting
    standards or practices may adversely affect our reported
    financial results or the way in which we conduct our business.
</DIV>
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    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    will incur increased costs and demands upon management as a
    result of complying with the laws and regulations affecting
    public companies, which could harm our operating
    results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a public company, we will incur significant legal,
    accounting, investor relations and other expenses that we did
    not incur as a private company, including costs associated with
    public company reporting requirements. We also have incurred and
    will incur costs associated with current corporate governance
    requirements, including requirements under Section&#160;404 and
    other provisions of the Sarbanes-Oxley Act, as well as rules
    implemented by the Securities Exchange Commission and the NASDAQ
    Global Market. We expect these rules and regulations to increase
    our legal and financial compliance costs substantially and to
    make some activities more time-consuming and costly. We also
    expect that, as a public company, it will be more expensive for
    us to obtain director and officer liability insurance and that
    it may be more difficult for us to attract and retain qualified
    individuals to serve on our board of directors or as our
    executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Government
    regulation of the rental housing industry, including background
    screening services and utility billing, the Internet and
    <FONT style="white-space: nowrap">e-commerce</FONT>
    is evolving, and changes in regulations or our failure to comply
    with regulations could harm our operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rental housing industry is subject to extensive and complex
    federal, state and local regulations. Our services and solutions
    must work within the extensive and evolving regulatory
    requirements applicable to our customers and third-party service
    providers, including, but not limited to, those under the Fair
    Credit Reporting Act, the Fair Housing Act, the Deceptive Trade
    Practices Act, the DPPA, the Gramm-Leach-Bliley Act, the Fair
    and Accurate Credit Transactions Act, the Privacy Rules,
    Safeguards Rule and Consumer Report Information Disposal Rule
    promulgated by the Federal Trade Commission, or FTC,  the
    regulations of the United States Department of Housing and Urban
    Development, or HUD, and complex and divergent state and local
    laws and regulations related to data privacy and security,
    credit and consumer reporting, deceptive trade practices,
    discrimination in housing, utility billing and energy and gas
    consumption. These regulations are complex, change frequently
    and may become more stringent over time. Although we attempt to
    structure and adapt our solutions and service offerings to
    comply with these complex and evolving laws and regulations, we
    may be found to be in violation. If we are found to be in
    violation of any applicable laws or regulations, we could be
    subject to administrative and other enforcement actions as well
    as class action lawsuits. Additionally, many applicable laws and
    regulations provide for penalties or assessments on a per
    occurrence basis. Due to the nature of our business, the type of
    services we provide and the large number of transactions
    processed by our solutions, our potential liability in an
    enforcement action or class action lawsuit could be significant.
    In addition, entities such as HUD and the FTC have the authority
    to promulgate rules and regulations that may impact our
    customers and our business. We believe increased regulation is
    likely in the area of data privacy, and laws and regulations
    applying to the solicitation, collection, processing or use of
    personally identifiable information or consumer information
    could affect our customers&#146; ability to use and share data,
    potentially reducing demand for our on demand software solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We deliver our on demand software solutions over the Internet
    and sell and market certain of our solutions over the Internet.
    As Internet commerce continues to evolve, increasing regulation
    by federal, state or foreign agencies becomes more likely.
    Taxation of products or services provided over the Internet or
    other charges imposed by government agencies or by private
    organizations for accessing the Internet may also be imposed.
    Any regulation imposing greater fees for Internet use or
    restricting information exchange over the Internet could result
    in a decline in the use of the Internet and the viability of on
    demand software solutions, which could harm our business and
    operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    LeasingDesk insurance business is subject to governmental
    regulation which could reduce our profitability or limit our
    growth.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We hold insurance agent licenses from a number of individual
    state departments of insurance and are subject to state
    governmental regulation and supervision in connection with the
    operation of our LeasingDesk insurance business. This state
    governmental supervision could reduce our profitability or limit
    the growth of our LeasingDesk insurance business by increasing
    the costs of regulatory compliance, limiting or restricting the
    solutions we provide or the methods by which we provide them or
    subjecting us to the possibility of
</DIV>
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    regulatory actions or proceedings. Our continued ability to
    maintain these insurance agent licenses in the jurisdictions in
    which we are licensed depends on our compliance with the rules
    and regulations promulgated from time to time by the regulatory
    authorities in each of these jurisdictions. Furthermore, state
    insurance departments conduct periodic examinations, audits and
    investigations of the affairs of insurance agents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In all jurisdictions, the applicable laws and regulations are
    subject to amendment or interpretation by regulatory
    authorities. Generally, such authorities are vested with
    relatively broad discretion to grant, renew and revoke licenses
    and approvals and to implement regulations. Accordingly, we may
    be precluded or temporarily suspended from carrying on some or
    all of the activities of our LeasingDesk insurance business or
    otherwise be fined or penalized in a given jurisdiction. No
    assurances can be given that our LeasingDesk insurance business
    can continue to be conducted in any given jurisdiction as it has
    been conducted in the past.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    generate commission revenue from the insurance policies we sell
    as a registered insurance agent and if insurance premiums
    decline or if the insureds experience greater than expected
    losses, our revenues could decline and our operating results
    could be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through our wholly owned subsidiary, Multifamily Internet
    Ventures LLC, a managing general insurance agency, we generate
    commission revenue from offering liability and renter&#146;s
    insurance. Additionally, Multifamily Internet Ventures LLC has
    recently commenced the sale of additional insurance products,
    including auto and other personal lines insurance, to residents
    that buy renter&#146;s insurance from us. These policies are
    ultimately underwritten by various insurance carriers. Some of
    the property owners and managers that subscribe to our solution
    opt to require residents to purchase rental insurance policies
    and agree to allow Multifamily Internet Ventures LLC to act as
    the exclusive insurance broker to their property. If demand for
    residential rental housing declines, property owners and
    managers may be forced to reduce their rental rates and to stop
    requiring the purchase of rental insurance in order to reduce
    the overall cost of renting. If property owners or managers
    cease to require renter&#146;s insurance, elect to offer
    policies from competing providers or insurance premiums decline,
    our revenues from selling insurance policies will be adversely
    affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, one type of commission paid by insurance carriers
    to Multifamily Internet Ventures LLC is contingent commission,
    which is based on claims experienced at the properties for which
    the residents purchase insurance. In the event that claims by
    the insureds increase unexpectedly, the contingent commission we
    typically earn will be adversely affected. As a result, our
    quarterly operating results could fall below the expectations of
    analysts or investors, in which event our stock price may
    decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    ability to use net operating losses to offset future taxable
    income may be subject to certain limitations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, under Section&#160;382 of the Internal Revenue Code
    of 1986, as amended, or the Internal Revenue Code, a corporation
    that undergoes an &#147;ownership change&#148; is subject to
    limitations on its ability to utilize its pre-change net
    operating losses, or NOLs, to offset future taxable income. Our
    ability to utilize NOLs of companies that we may acquire in the
    future may be subject to limitations. Future changes in our
    stock ownership, some of which are outside of our control, could
    result in an ownership change under Section&#160;382 of the
    Internal Revenue Code. For these reasons, we may not be able to
    utilize a material portion of the NOLs reflected on our balance
    sheet, even if we maintain profitability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are required to collect sales and use taxes on the solutions we
    sell in additional taxing jurisdictions, we may be subject to
    liability for past sales and our future sales may
    decrease.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    States and some local taxing jurisdictions have differing rules
    and regulations governing sales and use taxes, and these rules
    and regulations are subject to varying interpretations that may
    change over time. We review these rules and regulations
    periodically and currently collect and remit sales taxes in
    taxing jurisdictions where we believe we are required to do so.
    However, additional state
    <FONT style="white-space: nowrap">and/or</FONT> local
    taxing jurisdictions may seek to impose sales or other tax
    collection obligations on us, including for past sales. A
    successful assertion that we should be collecting additional
    sales or other taxes on our solutions could result in
    substantial tax liabilities for past sales, discourage customers
    from purchasing our solutions or may otherwise harm our business
    and operating results. This risk is greater with regard to
    solutions acquired through acquisitions.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may also become subject to tax audits or similar procedures
    in jurisdictions where we already collect and remit sales taxes.
    A successful assertion that we have not collected and remitted
    taxes at the appropriate levels may also result in substantial
    tax liabilities for past sales. Liability for past taxes may
    also include very substantial interest and penalty charges. Our
    customer contracts provide that our customers must pay all
    applicable sales and similar taxes. Nevertheless, customers may
    be reluctant to pay back taxes and may refuse responsibility for
    interest or penalties associated with those taxes. If we are
    required to collect and pay back taxes and the associated
    interest and penalties, and if our customers fail or refuse to
    reimburse us for all or a portion of these amounts, we will
    incur unplanned expenses that may be substantial. Moreover,
    imposition of such taxes on our solutions going forward will
    effectively increase the cost of such solutions to our customers
    and may adversely affect our ability to retain existing
    customers or to gain new customers in the areas in which such
    taxes are imposed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in our effective tax rate could harm our future operating
    results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to federal and state income taxes in the United
    States and various foreign jurisdictions, and our domestic and
    international tax liabilities are subject to the allocation of
    expenses in differing jurisdictions. Our tax rate is affected by
    changes in the mix of earnings and losses in jurisdictions with
    differing statutory tax rates, including jurisdictions in which
    we have completed or may complete acquisitions, certain
    non-deductible expenses arising from the requirement to expense
    stock options and the valuation of deferred tax assets and
    liabilities, including our ability to utilize our net operating
    losses. Increases in our effective tax rate could harm our
    operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    rely on our management team and need additional personnel to
    grow our business, and the loss of one or more key employees or
    our inability to attract and retain qualified personnel could
    harm our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success and future growth depend on the skills, working
    relationships and continued services of our management team. The
    loss of our Chief Executive Officer or other senior executives
    could adversely affect our business. Our future success also
    will depend on our ability to attract, retain and motivate
    highly skilled software developers, marketing and sales
    personnel, technical support and product development personnel
    in the United States and internationally. All of our employees
    work for us on an at-will basis. Competition for these types of
    personnel is intense, particularly in the software industry. As
    a result, we may be unable to attract or retain qualified
    personnel. Our inability to attract and retain the necessary
    personnel could adversely affect our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    corporate culture has contributed to our success, and if we
    cannot maintain this culture as we grow, we could lose the
    innovation, creativity and teamwork fostered by our culture, and
    our business may be harmed.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that a strong corporate culture that nurtures core
    values and philosophies is essential to our long-term success.
    We call these values and philosophies the &#147;RealPage
    Promise&#148; and we seek to practice the RealPage Promise in
    our actions every day. The RealPage Promise embodies our
    corporate values with respect to customer service, investor
    communications, employee respect and professional development
    and management decision-making and leadership. As our
    organization grows and we are required to implement more complex
    organizational structures, we may find it increasingly difficult
    to maintain the beneficial aspects of our corporate culture
    which could negatively impact our future success.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to this Offering and Ownership of our Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    concentration of our capital stock owned by insiders upon the
    completion of this offering will limit your ability to influence
    corporate matters.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We anticipate that our executive officers, directors, current 5%
    or greater stockholders and entities affiliated with them will
    together beneficially own approximately&#160;&#160;&#160;% of
    our common stock following this offering, or&#160;&#160;&#160;%
    if the underwriters exercise their over-allotment option in
    full. Further, we anticipate that Stephen T. Winn, our Chief
    Executive Officer and Chairman of the Board, or entities
    beneficially owned by
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Winn will hold an aggregate of
    approximately&#160;&#160;&#160;% of our common stock following
    this offering, or&#160;&#160;&#160;% if the underwriters
    exercise their over-allotment option in full. This significant
    concentration of ownership may adversely affect the trading
    price for our common stock because investors often perceive
    disadvantages in owning stock in companies with controlling
    stockholders. Mr.&#160;Winn, or other insider stockholders
    acting together, will be able to control our management and
    affairs and matters requiring stockholder approval, including
    the election of directors and the approval of significant
    corporate transactions, such as mergers, consolidations or the
    sale of substantially all of our assets. Consequently, this
    concentration of ownership may have the effect of delaying or
    preventing a change of control, including a merger,
    consolidation or other business combination involving us, or
    discouraging a potential acquirer from making a tender offer or
    otherwise attempting to obtain control, even if that change of
    control would benefit our other stockholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">An
    active, liquid and orderly trading market for our common stock
    may not develop, the price of our stock may be volatile and you
    could lose all or part of your investment.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Before this offering, there has been no public market for shares
    of our common stock. We cannot predict the extent to which
    investor interest in our company will lead to the development of
    a trading market or how liquid that market might become. The
    initial public offering price for the shares of our common stock
    will be determined by negotiations among us, the selling
    stockholders and the underwriters, and may not be indicative of
    the price that will prevail in the trading market following this
    offering. In addition, the trading price of our common stock
    following this offering is likely to be highly volatile and
    could be subject to wide fluctuations in response to various
    factors, including, but not limited to, those described in this
    &#147;Risk Factors&#148; section, some of which are beyond our
    control. Factors affecting the trading price of our common stock
    will include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variations in our operating results or in expectations regarding
    our operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variations in operating results of similar companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    announcements of technological innovations, new solutions or
    enhancements, strategic alliances or agreements by us or by our
    competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    announcements by competitors regarding their entry into new
    markets, and new product, service and pricing strategies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    marketing and advertising initiatives by us or our competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the gain or loss of customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    threatened or actual litigation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    major changes in our board of directors or management;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    recruitment or departure of key personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the estimates of our operating results or changes in
    recommendations by any research analysts that elect to follow
    our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    market conditions in our industry and the economy as a whole;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the overall performance of the equity markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sales of our shares of common stock by existing stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    volatility in our stock price, which may lead to higher
    stock-based compensation expense under applicable accounting
    standards;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adoption or modification of regulations, policies, procedures or
    programs applicable to our business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the stock market in general, and the market for
    technology and specifically Internet-related companies, has
    experienced extreme price and volume fluctuations that have
    often been unrelated or disproportionate to the operating
    performance of those companies. Broad market and industry
    factors may harm the market price of our common stock regardless
    of our actual operating performance. These fluctuations
</DIV>
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    <BR>
    31
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    may be even more pronounced in the trading market for our stock
    shortly following this offering. In addition, in the past,
    following periods of volatility in the overall market and the
    market price of a particular company&#146;s securities,
    securities class action litigation has often been instituted
    against these companies. This litigation, if instituted against
    us, could result in substantial costs and a diversion of our
    management&#146;s attention and our resources, whether or not we
    are successful in such litigation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    stock price could decline due to the large number of outstanding
    shares of our common stock eligible for future
    sale.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales of substantial amounts of our common stock in the public
    market following this offering, or the perception that these
    sales could occur, could cause the market price of our common
    stock to decline. These sales could also make it more difficult
    for us to sell equity or equity-related securities in the future
    at a time and price that we deem appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of this offering, we will
    have&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock outstanding, assuming no exercise of outstanding
    options after December&#160;31, 2009. The shares sold in this
    offering will be immediately tradable without restriction. Of
    the remaining shares:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    will be eligible for sale immediately upon completion of this
    offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    will be eligible for sale beginning 90&#160;days after the date
    of this prospectus;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    will be eligible for sale upon the expiration of
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements, subject in some cases to volume and other
    restrictions of Rule&#160;144 and Rule&#160;701 under the
    Securities Act of 1933, as amended, or the Securities Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <FONT style="white-space: nowrap">lock-up</FONT>
    agreements expire 180&#160;days after the date of this
    prospectus, except that the
    <FONT style="white-space: nowrap">180-day</FONT>
    period may be extended in certain cases for up to 34 additional
    days under certain circumstances where we announce or
    pre-announce earnings or a material event occurs within
    approximately 17&#160;days prior to, or approximately
    16&#160;days after, the termination of the
    <FONT style="white-space: nowrap">180-day</FONT>
    period. The representatives of the underwriters may, in their
    sole discretion and at any time without notice, release all or
    any portion of the securities subject to
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following this offering, holders
    of&#160;&#160;&#160;&#160;&#160;&#160;% of our common stock not
    sold in this offering will be entitled to rights with respect to
    the registration of these shares under the Securities Act. See
    &#147;Description of Capital Stock&#160;&#151; Registration
    Rights.&#148; If we register their shares of common stock
    following the expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements, these stockholders could sell those shares in the
    public market without being subject to the volume and other
    restrictions of Rule&#160;144 and Rule&#160;701.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the closing of this offering, we intend to register
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock that have been issued or reserved for future
    issuance under our stock incentive plans. Of these
    shares,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    will be eligible for sale upon the exercise of vested options
    after the expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    our initial public offering price is substantially higher than
    the pro forma as adjusted net tangible book value per share of
    our outstanding common stock, new investors will incur immediate
    and substantial dilution.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect the initial public offering price of our common stock
    to be substantially higher than the pro forma as adjusted net
    tangible book value per share of our common stock based on the
    total value of our tangible assets less our total liabilities
    immediately following this offering. Therefore, if you purchase
    common stock in this offering, you will experience immediate and
    substantial dilution of approximately $&#160;&#160;&#160; per
    share, the difference between the price you pay for our common
    stock and its pro forma as adjusted net tangible book value
    after the completion of this offering. Furthermore, investors
    purchasing common stock in this offering will own only
    approximately&#160;&#160;&#160;% of our shares outstanding after
    the completion of this offering even though they will have
    contributed&#160;&#160;&#160;% of the total consideration
    received by us in connection with our sales of common stock.
    After this offering, we will have an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock
</DIV>
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    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    authorized but unissued and not reserved for issuance under our
    stock option plans or otherwise. We intend to continue to
    actively pursue strategic acquisitions. We may pay for such
    acquisitions, partly or in full, through the issuance of
    additional equity. Following the completion of this offering, we
    may issue&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares of our
    common stock without any action or approval by our stockholders.
    Any issuance of shares in connection with our acquisitions, the
    exercise of stock options or otherwise would dilute the
    percentage ownership held by the investors who purchase our
    shares in this offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    management will have broad discretion over the use of the
    proceeds we receive in this offering and might not apply the
    proceeds in ways that increase the value of your
    investment.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our management will have broad discretion in the application of
    the net proceeds of this offering. We intend to use net proceeds
    of this offering to pay accumulated and unpaid dividends on our
    outstanding shares of Series&#160;A, Series&#160;A1 and
    Series&#160;B convertible preferred stock that have accrued at a
    rate of 8% per annum of the original issue price of each such
    share of preferred stock, compounded quarterly, which amounted
    to $&#160;&#160;&#160;&#160;&#160; million as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010, and to repay approximately $18.2&#160;million of our
    indebtedness outstanding as of December&#160;31, 2009. Although
    we currently expect to apply the net proceeds from this offering
    primarily for working capital and general corporate purposes,
    which may include future investments in, or acquisitions of,
    complementary businesses, products or technologies, we cannot
    specify with certainty how we will apply these net proceeds and
    our use of the net proceeds of this offering may not increase
    the value of your investment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    charter documents and Delaware law could prevent a takeover that
    stockholders consider favorable and could also reduce the market
    price of our stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that our amended and restated certificate of
    incorporation and our amended and restated bylaws, to be
    effective upon the completion of this offering, will contain
    provisions that could delay or prevent a change in control of
    our company. These provisions could also make it more difficult
    for stockholders to elect directors and take other corporate
    actions. These provisions include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not providing for cumulative voting in the election of directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    authorizing our board of directors to issue, without stockholder
    approval, preferred stock with rights senior to those of our
    common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prohibiting stockholder action by written consent;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    requiring advance notification of stockholder nominations and
    proposals.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These and other provisions we expect to be included in our
    amended and restated certificate of incorporation and our
    amended and restated bylaws, to be effective upon the completion
    of this offering, and under Delaware law could discourage
    potential takeover attempts, reduce the price that investors
    might be willing to pay in the future for shares of our common
    stock and result in the market price of our common stock being
    lower than it would be without these provisions. See
    &#147;Description of Capital Stock&#160;&#151; Preferred
    Stock&#148; and &#147;Description of Capital Stock&#160;&#151;
    Anti-Takeover Effects of Delaware Law and Our Certificate of
    Incorporation and Bylaws.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    securities analysts do not publish research or reports about our
    business or if they publish negative evaluations of our stock,
    the price of our stock could decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that the trading price for our common stock may be
    affected by research or reports that industry or financial
    analysts publish about us or our business. If one or more of the
    analysts who cover us downgrade their evaluations of our stock,
    the price of our stock could decline. If one or more of these
    analysts cease coverage of our company, we could lose visibility
    in the market for our stock, which in turn could cause our stock
    price to decline.
</DIV>
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    <BR>
    33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We do
    not anticipate paying any dividends on our common
    stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not anticipate paying any cash dividends on our common
    stock in the foreseeable future. If we do not pay cash
    dividends, you could receive a return on your investment in our
    common stock only if the market price of our common stock has
    increased when you sell your shares. In addition, the terms of
    our credit facilities currently restrict our ability to pay
    dividends.
</DIV>
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    <BR>
    34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SPECIAL
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY
    DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus contains forward-looking statements that are
    based on our management&#146;s beliefs and assumptions and on
    information currently available to our management. The
    forward-looking statements are contained principally in
    &#147;Prospectus Summary,&#148; &#147;Risk Factors,&#148;
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations,&#148; &#147;Business&#148;
    and &#147;Executive Compensation.&#148; Forward-looking
    statements include information concerning our possible or
    assumed future results of operations, business strategies,
    financing plans, competitive position, industry environment,
    potential growth opportunities, potential market opportunities
    and the effects of competition. Forward-looking statements
    include all statements that are not historical facts and can be
    identified by terms such as &#147;anticipates,&#148;
    &#147;believes,&#148; &#147;could,&#148; &#147;seeks,&#148;
    &#147;estimates,&#148; &#147;expects,&#148; &#147;intends,&#148;
    &#147;may,&#148; &#147;plans,&#148; &#147;potential,&#148;
    &#147;predicts, &#147;projects,&#148; &#147;should,&#148;
    &#147;will,&#148; &#147;would&#148; or similar expressions and
    the negatives of those terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking statements involve known and unknown risks,
    uncertainties and other factors that may cause our actual
    results, performance or achievements to be materially different
    from any future results, performance or achievements expressed
    or implied by the forward-looking statements. We discuss these
    risks in greater detail in &#147;Risk Factors&#148; and
    elsewhere in this prospectus. Given these uncertainties, you
    should not place undue reliance on these forward-looking
    statements. Also, forward-looking statements represent our
    management&#146;s beliefs and assumptions only as of the date of
    this prospectus. You should read this prospectus and the
    documents that we have filed as exhibits to the registration
    statement, of which this prospectus is a part, completely and
    with the understanding that our actual future results may be
    materially different from what we expect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, we assume no obligation to update
    these forward-looking statements publicly, or to update the
    reasons actual results could differ materially from those
    anticipated in these forward-looking statements, even if new
    information becomes available in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus also contains estimates and other information
    concerning our industry, including market opportunity, size and
    growth rates, that are based on industry and government
    publications, reports, surveys and forecasts, including those
    generated by the United States Census Bureau and the National
    Multi Housing Council, and on assumptions that we have made that
    are based on that data, our review of the purchasing patterns of
    our existing customers with respect to our current on demand
    software solutions, the on demand software solutions currently
    utilized by our existing customers, the number of units our
    customers manage with these solutions and customer demand for
    our solutions. This information involves a number of assumptions
    and limitations, and you are cautioned not to give undue weight
    to these estimates. With respect to information contained in
    industry and government publications, surveys and forecasts, we
    have assessed the information in the publications and found it
    to be reasonable and believe the publications are reliable, but
    we have not independently verified their data and cannot
    guarantee its accuracy or completeness. While we believe the
    market opportunity and market size information included in this
    prospectus is based on reasonable assumptions, such information
    is inherently imprecise. In addition, projections, assumptions
    and estimates of the future performance of the industry in which
    we operate and the markets we serve are necessarily subject to a
    high degree of uncertainty and risk, including those described
    in &#147;Risk Factors.&#148;
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that the net proceeds from our sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock in this offering at an assumed initial public
    offering price of $&#160;&#160;&#160; per share, the midpoint of
    the price range set forth on the front cover of this prospectus,
    after deducting estimated underwriting discounts and commissions
    and estimated offering expenses, will be approximately
    $&#160;&#160;&#160;&#160;million. A $1.00 increase (decrease) in
    the assumed initial public offering price of $&#160;&#160;&#160;
    per share would increase (decrease) our net proceeds to us from
    this offering by approximately $&#160;&#160;&#160;&#160;million,
    assuming the number of shares offered by us, as set forth on the
    cover page of this prospectus, remains the same and after
    deducting estimated underwriting discounts and commissions and
    estimated offering expenses that we expect to pay. We will not
    receive any proceeds from the sale of shares of our common stock
    by the selling stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to use the net proceeds from this offering to pay
    accumulated and unpaid dividends on our outstanding shares of
    Series&#160;A, Series&#160;A1 and Series&#160;B convertible
    preferred stock that have accrued at a rate of 8% per annum of
    the original issue price of each such share of preferred stock,
    compounded quarterly, which amounted to
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;million as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010, and to repay approximately $18.2&#160;million of our
    indebtedness outstanding as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The outstanding indebtedness under our unsecured subordinated
    promissory notes held by certain holders of our preferred stock
    has a stated maturity of the earlier of either October&#160;1,
    2013 for notes issued December&#160;31, 2008 or April&#160;1,
    2014 for notes issued April&#160;23, 2010, immediately prior to
    this offering or immediately prior to our acquisition by another
    person or the sale of all or substantially all of our assets. At
    December&#160;31, 2009, we had $8.2&#160;million of outstanding
    indebtedness under the unsecured subordinated promissory notes
    and on April&#160;23, 2010, we issued additional unsecured
    promissory notes having an aggregate principal amount of
    approximately $0.4&#160;million. These outstanding amounts bear
    interest at a per annum rate equal to 8.0%. Pursuant to the
    terms of our unsecured subordinated promissory notes, we will be
    required to repay the outstanding principal amount and all
    accrued and unpaid interest under our unsecured subordinated
    promissory notes from the net proceeds from this offering. We
    expect this repayment to be approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The outstanding indebtedness under our secured promissory notes
    held by HV Capital Investors, L.L.C. has a stated maturity of
    August&#160;1, 2013. At December&#160;31, 2009, we had
    $10.0&#160;million of outstanding indebtedness under two secured
    promissory notes in principal amount of $5.0&#160;million each.
    These outstanding amounts bear interest at a per annum rate
    equal to 13.75%, payable quarterly in arrears. We intend to use
    net proceeds of this offering to repay all indebtedness
    outstanding under one or both of our secured promissory notes.
    We expect this repayment to be approximately
    $&#160;&#160;&#160;&#160;&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently do not intend to prepay with the proceeds from this
    offering any additional outstanding indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to use our remaining net proceeds from this offering
    for working capital and general corporate purposes. We may also
    use a portion of the net proceeds received by us from this
    offering for the future acquisition of, or investment in,
    businesses, products or technologies that enhance or add new
    services or additional functionality to our solutions, further
    solidify our market position or allow us to offer complementary
    products, services or technologies which we believe will further
    enhance our competitive position. Accordingly, our management
    will have broad discretion in the application of these proceeds
    and investors will be relying on the judgment of our management
    regarding their application.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pending use of the proceeds from this offering, we intend to
    invest the remaining proceeds in short-term, interest-bearing
    investment grade securities.
</DIV>

<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not expect to pay dividends on our common stock for the
    foreseeable future. Instead, we anticipate that all of our
    earnings will be used for the operation and growth of our
    business. Any future determination to declare cash dividends
    would be subject to the discretion of our board of directors and
    would depend upon
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    various factors, including our results of operations, financial
    condition and liquidity requirements, restrictions that may be
    imposed by applicable law and our contracts and other factors
    deemed relevant by our board of directors. In addition, the
    terms of our credit facilities currently restrict our ability to
    pay dividends.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our consolidated cash and cash
    equivalents and capitalization as of December&#160;31, 2009 on:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an actual basis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a pro forma basis to reflect (i)
    the&#160;&#160;&#160;&#160;&#160;&#160;-for-&#160;&#160;&#160;&#160;&#160;&#160;
    reverse stock split of our common stock and convertible
    preferred stock to be effected prior to the completion of this
    offering and (ii) the conversion of all outstanding shares of
    our convertible preferred stock into 58,087,500&#160;shares of
    our common stock upon the closing of this offering;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a pro forma as adjusted basis to reflect (i)&#160;our receipt of
    the net proceeds from our sale of shares of common stock in this
    offering at an assumed initial public offering price of
    $&#160;&#160;&#160; per share, the midpoint of the range set
    forth on the front cover of this prospectus, after deducting
    estimated underwriting discounts and commissions and estimated
    offering expenses and (ii)&#160;the application of the net
    proceeds from this offering as described under &#147;Use of
    Proceeds.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information below is illustrative only and our
    capitalization following the completion of this offering will be
    adjusted based on the actual initial public offering price and
    other terms of this offering determined at pricing. You should
    read this table in conjunction with &#147;Selected Consolidated
    Financial Data&#148; and &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations&#148;
    and our consolidated financial statements and related notes
    included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolving credit facility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current and long
    term-debt<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,990
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Convertible preferred stock:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Redeemable convertible preferred stock Series&#160;A and A1,
    $0.001&#160;par value:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    51,812,500&#160;shares authorized, issued and outstanding,
    actual;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized, no shares issued or outstanding, pro forma; no
    shares authorized, issued and outstanding, pro forma as adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Redeemable convertible preferred stock Series&#160;B,
    $0.001&#160;par value:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    3,250,000&#160;shares authorized, issued and outstanding,
    actual;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized, no shares issued or outstanding, pro forma; no
    shares authorized, issued and outstanding, pro forma as adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,491
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Redeemable convertible preferred stock Series&#160;C,
    $0.001&#160;par value:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    3,025,000 authorized, issued and outstanding,
    actual;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized, no shares issued or outstanding, pro forma; no
    shares authorized issued and outstanding, pro forma as adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Total redeemable convertible preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    71,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes capital lease obligations.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; (deficit) equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Common stock, $0.001&#160;par value per share
    135,000,000&#160;shares authorized; 53,334,684 issued and
    52,921,608 outstanding,
    actual;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;issued
    and outstanding, pro
    forma;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized, issued and outstanding, pro forma as adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Preferred stock, $0.001&#160;par value; no shares authorized,
    issued or outstanding, actual or pro
    forma;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized, no shares issued or outstanding, pro forma as
    adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Additional paid in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Treasury stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (938
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (89,797
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total stockholders&#146; (deficit) equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59,346
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of pro forma and pro forma as adjusted shares of
    common stock shown as issued and outstanding in the table are
    based on the number of shares of our common stock outstanding as
    of December&#160;31, 2009 and excludes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    15,707,456&#160;shares of common stock issuable upon the
    exercise of options outstanding as of December&#160;31, 2009
    under our 1998 Stock Incentive Plan, with a weighted average
    exercise price of $2.16 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    150,000&#160;shares of common stock issuable upon exercise of
    options outstanding as of December&#160;31, 2009 issued to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.00 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    1,721,000&#160;shares of common stock issuable upon exercise of
    options granted in the quarter ended March&#160;31, 2010 under
    our 1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    120,000&#160;shares of common stock issuable upon exercise of
    options granted in the quarter ended March&#160;31, 2010 to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock reserved for future issuance under our 2010
    Equity Incentive Plan, which will become effective in connection
    with this offering (including 732,285&#160;shares of common
    stock reserved, as of December&#160;31, 2009, for future
    issuance under our 1998 Stock Incentive Plan, which shares will
    be added to the shares reserved under our 2010 Equity Incentive
    Plan, upon its effectiveness);&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    25,000&#160;shares of common stock issuable upon the exercise of
    warrants outstanding as of December&#160;31, 2009, with a
    weighted average exercise price of $1.00 per share.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A $1.00 increase or decrease in the assumed initial public
    offering price would result in an approximately
    $&#160;&#160;&#160;&#160;million decrease or increase in each of
    pro forma as adjusted cash and cash equivalents, additional
    paid-in capital, total stockholders&#146; (deficit) equity and
    total capitalization.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DILUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, our pro forma net tangible book
    value (deficit) was approximately
    $(&#160;&#160;&#160;&#160;)&#160;million, or
    $(&#160;&#160;&#160;&#160;) per share of common stock. Our pro
    forma net tangible book value (deficit) per share represents the
    amount of our total tangible assets less our liabilities,
    divided by the shares of common stock outstanding at
    December&#160;31, 2009 after giving effect to
    the&#160;&#160;&#160;&#160;&#160;&#160;-for-&#160;&#160;&#160;&#160;&#160;&#160;
    reverse stock split of our common stock and convertible
    preferred stock to be effected prior to the completion of this
    offering and the conversion of all outstanding shares of our
    convertible preferred stock into 58,087,500&#160;shares of
    common stock effective upon the completion of this offering. Our
    pro forma as adjusted net tangible book value at
    December&#160;31, 2009 would have been
    $&#160;&#160;&#160;&#160;million, or $&#160;&#160;&#160; per
    share of common stock after giving effect to our sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock in this offering at an assumed initial public
    offering price of $&#160;&#160;&#160; per share, the midpoint of
    the price range set forth on the front cover of this prospectus.
    Our pro forma as adjusted net tangible book value also assumes
    the deduction of (i)&#160;estimated underwriting discounts and
    commissions and offering expenses, (ii)&#160;the application of
    a portion of the proceeds of this offering to pay accumulated
    and unpaid dividends on our outstanding shares of Series&#160;A,
    Series&#160;A1 and Series&#160;B convertible preferred stock
    that have accrued at a rate of 8%, per annum of the original
    issue price of each such share of preferred stock, compounded
    quarterly, which amounted to
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;million as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010, and (iii)&#160;the application of a portion of the
    proceeds of this offering to repay approximately
    $18.2&#160;million of our indebtedness outstanding as of
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This represents an immediate increase in net tangible book value
    of $&#160;&#160;&#160; per share to existing stockholders and an
    immediate dilution in net tangible book value of
    $&#160;&#160;&#160; per share to purchasers of common stock in
    this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table illustrates this dilution:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assumed initial offering price per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Pro forma net tangible book value per share as of
    December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase per share attributable to this offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma as adjusted net tangible book value per share after
    this offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net tangible book value dilution per share to new investors in
    this offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If all our outstanding options and warrants had been exercised,
    our pro forma net tangible book value (deficit) as of
    December&#160;31, 2009 would have been
    $(&#160;&#160;&#160;&#160;)&#160;million, or
    $(&#160;&#160;&#160;&#160;) per share, and the pro forma as
    adjusted net tangible book value after this offering would have
    been $&#160;&#160;&#160;&#160;million, or $&#160;&#160;&#160;
    per share, causing dilution to new investors of
    $&#160;&#160;&#160;&#160;&#160;&#160; per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes, on a pro forma as adjusted basis
    as of December&#160;31, 2009, the total number of shares of
    common stock purchased from us, the total consideration paid to
    us and the average price per share paid to us by existing
    stockholders and by new investors purchasing shares in this
    offering at the initial public offering price of
    $&#160;&#160;&#160;&#160;&#160;&#160;, the midpoint of the price
    range set forth on the front cover of this prospectus, before
    deducting estimated underwriting discounts and commissions and
    estimated offering expenses:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares Purchased</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average Price Per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Share</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Existing stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,009,108
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    New investors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Totals
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculations in the foregoing table are based on
    111,009,108&#160;shares of our common stock as of
    December&#160;31, 2009 and exclude:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    15,707,456&#160;shares of common stock issuable upon the
    exercise of options outstanding as of December&#160;31, 2009
    under our 1998 Stock Incentive Plan, with a weighted average
    exercise price of $2.16 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    150,000&#160;shares of common stock issuable upon exercise of
    options outstanding as of December&#160;31, 2009 issued to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.00 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    1,721,000&#160;shares of common stock issuable upon exercise of
    options granted in the quarter ended March&#160;31, 2010 under
    our 1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    120,000&#160;shares of common stock issuable upon exercise of
    options granted in the quarter ended March&#160;31, 2010 to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock reserved for future issuance under our 2010
    Equity Incentive Plan, which will become effective in connection
    with this offering (including 732,285&#160;shares of common
    stock reserved, as of December&#160;31, 2009, for future
    issuance under our 1998 Stock Incentive Plan, which shares will
    be added to the shares reserved under our 2010 Equity Incentive
    Plan, upon its effectiveness);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    25,000&#160;shares of common stock issuable upon the exercise of
    warrants outstanding as of December&#160;31, 2009, with a
    weighted average exercise price of $1.00 per share.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    CONSOLIDATED FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have derived the consolidated statements of operations data
    for the years ended December&#160;31, 2007, 2008 and 2009 and
    the consolidated balance sheet data as of December 31, 2008 and
    2009 from our audited consolidated financial statements, which
    have been audited by Ernst&#160;&#038; Young LLP, independent
    registered public accounting firm, and are included elsewhere in
    this prospectus. We have derived the consolidated statement of
    operations data for the years ended December&#160;31, 2005 and
    2006 and the consolidated balance sheet data as of
    December&#160;31, 2005, 2006 and 2007 from our unaudited
    consolidated financial statements that are not included in this
    prospectus. You should read the following selected consolidated
    financial data in conjunction with our consolidated financial
    statements and related notes, the information in
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#148; and the other
    financial information included elsewhere in this prospectus. Our
    historical results are not necessarily indicative of our future
    results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2005<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2006<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 2pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consolidated Statements of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,645
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,142
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,782
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Total operating expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,040
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,664
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,633
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (354
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (381
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (508
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,510
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,152
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,528
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (Loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,421
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,172
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,506
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (14,421
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,172
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (19,426
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,590
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (19,426
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,590
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2005<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2006<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 2pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income per share attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1.02
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.53
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1.02
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.53
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average number of shares used in computing net (loss)
    income per share attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,087
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,087
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma net income per share attributable to common
    stockholders
    (unaudited)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>:

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma weighted average shares used in computing net income
    per share attributable to common stockholders
    (unaudited)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>:

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2005<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2006<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 2pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consolidated Balance Sheet Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash
    equivalents<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,493
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Working capital, excluding deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,518
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current and long-term
    debt<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,990
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,485
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stockholders&#146; deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (88,497
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (99,274
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (106,970
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (98,957
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Other Financial Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,162
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (692
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating cash flow
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,614
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital expenditures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,597
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 2pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Selected Operating Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of on demand customers at period end
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,469
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,199
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of on demand units at period end (in thousands)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total number of employees at period end
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    532
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Pro forma net income per share represents net income divided by
    the pro forma weighted average shares outstanding as though the
    conversion of our redeemable convertible preferred stock into
    common stock occurred on the original issuance dates.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    43
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Pro forma weighted average shares outstanding reflects the
    conversion of our redeemable convertible preferred stock (using
    the if-converted method) into common stock as though the
    conversion had occurred on the original dates of issuance.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes restricted cash.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes capital lease obligations.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    We define Adjusted EBITDA as net (loss) income plus depreciation
    and asset impairment, amortization of intangible assets,
    interest expense, net, income tax expense (benefit), stock-based
    compensation expense and acquisition-related expense.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We believe that the use of Adjusted EBITDA is useful to
    investors and other users of our financial statements in
    evaluating our operating performance because it provides them
    with an additional tool to compare business performance across
    companies and across periods. We believe that:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA provides investors and other users of our
    financial information consistency and comparability with our
    past financial performance, facilitates period-to-period
    comparisons of operations and facilitates comparisons with our
    peer companies, many of which use similar non-GAAP financial
    measures to supplement their GAAP results; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    it is useful to exclude certain non-cash charges, such as
    depreciation and asset impairment, amortization of intangible
    assets and stock-based compensation and non-core operational
    charges, such as acquisition-related expense, from Adjusted
    EBITDA because the amount of such expenses in any specific
    period may not directly correlate to the underlying performance
    of our business operations and these expenses can vary
    significantly between periods as a result of new acquisitions,
    full amortization of previously acquired tangible and intangible
    assets or the timing of new stock-based awards, as the case may
    be.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We use Adjusted EBITDA in conjunction with traditional GAAP
    operating performance measures as part of our overall assessment
    of our performance, for planning purposes, including the
    preparation of our annual operating budget, to evaluate the
    effectiveness of our business strategies and to communicate with
    our board of directors concerning our financial performance.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We do not place undue reliance on Adjusted EBITDA as our only
    measure of operating performance. Adjusted EBITDA should not be
    considered as a substitute for other measures of liquidity or
    financial performance reported in accordance with GAAP. There
    are limitations to using non-GAAP financial measures, including
    that other companies may calculate these measures differently
    than we do, that they do not reflect our capital expenditures or
    future requirements for capital expenditures and that they do
    not reflect changes in, or cash requirements for, our working
    capital. We compensate for the inherent limitations associated
    with using Adjusted EBITDA measures through disclosure of these
    limitations, presentation of our financial statements in
    accordance with GAAP and reconciliation of Adjusted EBITDA to
    the most directly comparable GAAP measure, net (loss) income.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a reconciliation of net (loss)
    income to Adjusted EBITDA:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (14,421
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,172
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and asset impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Amortization of intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,095
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    381
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition-related expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,162
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (692
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents stock-based compensation included
    in each expense category:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF FINANCIAL<BR>
    CONDITION AND RESULTS OF OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following discussion and analysis of our financial
    condition and results of operations should be read together with
    &#147;Selected Consolidated Financial Data&#148; and our
    financial statements and accompanying notes included elsewhere
    in this prospectus. This discussion contains forward-looking
    statements, based on current expectations and related to our
    plans, estimates, beliefs and anticipated future financial
    performance. These statements involve risks and uncertainties
    and our actual results may differ materially from those
    anticipated in these forward-looking statements as a result of
    many factors, including those set forth under &#147;Risk
    Factors,&#148; &#147;Special Note Regarding Forward-Looking
    Statements and Industry Data&#148; and elsewhere in this
    prospectus.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a leading provider of on demand software solutions for
    the rental housing industry. Our broad range of property
    management solutions enable owners and managers of single-family
    and a wide variety of multi-family rental property types to
    manage their marketing, pricing, screening, leasing, accounting,
    purchasing and other property operations. We deliver our on
    demand software solutions via the Internet through an integrated
    software platform that provides a single point of access and a
    shared repository of prospect, resident and property data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derive a substantial majority of our revenue from sales of
    our on demand software solutions.  We also derive revenue from
    our professional and other services.  A small percentage of our
    revenue is derived from sales of our on premise software
    solutions to our existing on premise customers. Our on demand
    software solutions are sold pursuant to subscription license
    agreements, and our on premise software solutions are sold
    pursuant to term or perpetual license agreements and associated
    maintenance agreements. Typically, we price our solutions based
    primarily on the number of units the customer manages with our
    solutions. For our insurance and transaction-based solutions, we
    price based on a fixed commission rate of earned premiums or a
    fixed rate per transaction, respectively. We sell our solutions
    through our direct sales organization and derive substantially
    all of our revenue from sales in the United States. Our revenue
    has increased from $83.6&#160;million in 2007 to
    $140.9&#160;million in 2009. This increase in revenue has
    primarily been driven by increased sales of our on demand
    software solutions, a substantial amount of which has been
    derived from purchases of additional on demand software
    solutions by our existing customers. In 2009, our on demand
    revenue represented 91.1% of our total revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While the adoption of on demand software solutions in the rental
    housing industry is growing rapidly, it remains at a relatively
    early stage of development. Additionally, there is a low level
    of penetration of our on demand software solutions in our
    existing customer base. We believe these factors present us with
    significant opportunities to generate revenue through sales of
    additional on demand software solutions. Our existing and
    potential customers base their decisions to invest in our
    solutions on a number of factors, including general economic
    conditions. Accordingly, macroeconomic conditions negatively
    impacted our business in 2009 and may continue to negatively
    impact our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our company was formed in 1998 to acquire Rent Roll, Inc., which
    marketed and sold on premise property management systems for the
    conventional and affordable multi-family rental housing markets.
    In June 2001, we released OneSite, our first on demand property
    management system. Since 2002, we have expanded our on demand
    software solutions to include a number of software-enabled
    value-added services that provide complementary sales and
    marketing, asset optimization, risk mitigation, billing and
    utility management and spend management capabilities. In
    connection with this expansion, we have allocated greater
    resources to the development and infrastructure needs of
    developing and increasing sales of our suite of on demand
    software solutions. In addition, since July 2002, we have
    completed 13 acquisitions of complementary technologies and
    businesses (including our recent February 2010 acquisition) to
    supplement our internal product development and sales and
    marketing efforts, enabling us to expand the scope of our
    solutions, the types of rental housing properties served by our
    solutions and our customer base.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Key
    Business Metrics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to traditional financial measures, we monitor our
    operating performance using a number of financially and
    non-financially derived metrics that are not included in our
    consolidated financial statements. We monitor the key
    performance indicators reflected in the following table:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands, except dollar per unit data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    83,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    140,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand revenue as a percentage of total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.1%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ending on demand units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average on demand units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,293
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,128
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    On demand revenue per average on demand unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted EBITDA as a percentage of total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand revenue.&#160;&#160;</I>This metric represents the
    license and subscription fees for accessing our on demand
    software solutions, typically licensed for one year terms,
    commission income from sales of renter&#146;s insurance policies
    and transaction fees for certain of our on demand software
    solutions. We consider on demand revenue to be a key business
    metric because we believe the market for our on demand software
    solutions represents the largest growth opportunity for our
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand revenue as a percentage of total
    revenue.&#160;&#160;</I>This metric represents on demand revenue
    for the period presented divided by total revenue for the same
    period. We use on demand revenue as a percentage of total
    revenue to measure our success in executing our strategy to
    increase the penetration of our on demand software solutions and
    expand our recurring revenue streams attributable to these
    solutions. We expect our on demand revenue to remain a
    significant percentage of our total revenue although the actual
    percentage may vary from period to period due to a number of
    factors, including the timing of acquisitions and professional
    and other revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Ending on demand units</I>.&#160;&#160;This metric represents
    the number of rental housing units managed by our customers with
    one or more of our on demand software solutions at the end of
    the period. We use ending on demand units to measure the success
    of our strategy of increasing the number of rental housing units
    managed with our on demand software solutions. Property unit
    counts are provided to us by our customers as new sales orders
    are processed. Property unit counts may be adjusted periodically
    as information related to our customers&#146; properties is
    updated or supplemented, which could result in adjusting the
    number of units previously reported. We expect ending on demand
    units will continue to increase in 2010 and 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand revenue per average on demand
    unit</I>.&#160;&#160;This metric represents on demand revenue
    for the period presented divided by average on demand units for
    the same period. We calculate average on demand units as the
    average of the beginning and ending on demand units for each
    quarter in the period presented. We monitor this metric to
    measure our success in increasing the number of on demand
    software solutions utilized by our customers to manage their
    rental housing units, our overall revenue and profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Adjusted EBITDA</I>.&#160;&#160;We define this metric as net
    (loss) income plus depreciation and asset impairment;
    amortization of intangible assets; interest expense, net; income
    tax expense (benefit); stock-based compensation expense and
    acquisition-related expense. We believe that the use of Adjusted
    EBITDA is useful in evaluating our operating performance because
    it excludes certain non-cash expenses, including depreciation,
    amortization and stock-based compensation. Adjusted EBITDA is
    not determined in accordance with accounting principles
    generally accepted in the United States, or GAAP, and should not
    be considered as a substitute for or superior to financial
    measures determined in accordance with GAAP. For further
    discussion regarding Adjusted EBITDA and a reconciliation of
    Adjusted EBITDA to net income, refer to the table below. Our
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    47
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjusted EBITDA grew from approximately $6.0&#160;million in
    2007 to approximately $25.6&#160;million in 2009, as a result of
    our efforts to expand market share and increase revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following provides a reconciliation of net (loss) income to
    Adjusted EBITDA:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="70%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and asset impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Amortization of intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,095
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition-related expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Key
    Components of our Results of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derive our revenue from three primary sources: our on demand
    software solutions; our on premise software solutions; and our
    professional and other services. In 2007, 2008 and 2009, we
    generated revenue of $83.6&#160;million, $112.6&#160;million and
    $140.9&#160;million, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">On Demand
    Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue from our on demand software solutions is comprised of
    license and subscription fees for accessing our on demand
    software solutions, typically licensed for one year terms,
    commission income from sales of renter&#146;s insurance
    policies, and transaction fees for certain on demand software
    solutions, such as payment processing, spend management and
    billing services. Typically, we price our on demand software
    solutions based primarily on the number of units the customer
    manages with our solutions. For our insurance and
    <FONT style="white-space: nowrap">transaction-based</FONT>
    solutions, we price based on a fixed commission rate of earned
    premiums or a fixed rate per transaction, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, 2008 and 2009, revenue from our on demand software
    solutions was approximately $62.6&#160;million,
    $95.2&#160;million and $128.4&#160;million, respectively,
    representing approximately 74.9%, 84.6% and 91.1% of our total
    revenue for the same years. Revenue from our on demand software
    solutions has continued to increase in absolute dollars and as a
    percentage of our total revenue as we have ceased actively
    marketing our on premise software solutions to new customers and
    as many of our existing on premise customers have transitioned
    to our on demand software solutions. We expect our on demand
    revenue to continue to increase in absolute dollars and as a
    percentage of revenue in 2010, although the actual percentage of
    revenue may vary from period to period due to a number of
    factors, including the impact of acquisitions and revenue
    derived from our professional and other services related to our
    on demand software solutions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">On
    Premise Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our on premise software solutions are distributed to our
    customers and maintained locally on the customers&#146;
    hardware. Revenue from our on premise software solutions is
    comprised of license fees under term and perpetual license
    agreements. Typically, we have licensed our on premise software
    solutions pursuant to term license agreements with an initial
    term of one year that include maintenance and support. Customers
    can renew their term license agreement for additional one-year
    terms at renewal price levels. In February 2010, we completed a
    strategic acquisition of assets that included on premise
    software solutions that were historically marketed and sold
    pursuant to perpetual license agreements and related maintenance
    agreements.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We no longer actively market our on premise software solutions
    to new customers, and only license our on premise software
    solutions to a small portion of our existing on premise
    customers as they expand their portfolio of rental housing
    properties. While we intend to continue to support our recently
    acquired on premise software solutions, we expect that many of
    the customers who license these solutions will transition to our
    on demand software solutions over time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, 2008 and 2009, revenue from our on premise software
    solutions was approximately $11.6&#160;million,
    $7.6&#160;million and $3.9&#160;million, respectively,
    representing approximately 13.8%, 6.7% and 2.7% of our total
    revenue for the same years, respectively. Revenue from our on
    premise software solutions has continued to decrease in absolute
    dollars and as a percentage of our total revenue as we have
    ceased actively marketing our on premise software solutions to
    new customers and as many of our existing on premise customers
    have transitioned to our on demand software solutions. We expect
    our on premise revenue to decrease over time in absolute dollars
    and as a percentage of our total revenue; however, our February
    2010 acquisition could result in a
    <FONT style="white-space: nowrap">near-term</FONT>
    increase in on premise revenue in terms of both absolute dollars
    and as a percentage of our total revenue until we transition
    these customers to our on demand software solutions. In
    addition, the actual percentage of revenue may vary from period
    to period due to a number of factors, including the impact of
    our recent and potential future acquisition of on premise
    software solutions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Professional
    and Other Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue from professional and other services consists of
    consulting and implementation services, training and other
    ancillary services. Professional and other services engagements
    are typically time and material.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We complement our solutions with professional and other
    services. In 2007, 2008 and 2009, revenue from professional and
    other services was approximately $9.4&#160;million,
    $9.8&#160;million and $8.7&#160;million, respectively,
    representing approximately 11.3%, 8.7% and 6.2% of our total
    revenue for the same years, respectively. We expect professional
    and other services will represent 10.0% or less of our total
    revenue in 2010 consistent with 2008 and 2009 performance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of revenue consists primarily of personnel costs related to
    our operations, support services, training and implementation
    services, expenses related to the operation of our data center
    and fees paid to third-party service providers. Personnel costs
    include salaries, bonuses, stock-based compensation and employee
    benefits. Cost of revenue also includes an allocation of
    facilities costs, overhead costs and depreciation, as well as
    amortization of acquired technology related to strategic
    acquisitions and amortization of capitalized development costs.
    We allocate facilities costs, overhead costs and depreciation
    based on headcount. We expect our cost of revenue in 2010 to
    increase in absolute dollars.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We classify our operating expenses into three categories:
    product development, sales and marketing, and general and
    administrative. Our operating expenses primarily consist of
    personnel costs, which includes compensation, employee benefits
    and payroll taxes, costs for third-party contracted development,
    marketing, legal, accounting and consulting services and other
    professional service fees. Personnel costs for each category of
    operating expenses include salaries, bonuses, stock-based
    compensation and employee benefits for employees in that
    category. In addition, our operating expenses include an
    allocation of our facilities costs, overhead costs and
    depreciation based on headcount for that category, as well as
    amortization of purchased intangible assets resulting from our
    acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operating expenses increased in absolute dollars in each of
    2008 and 2009 as we have built infrastructure and added
    employees across all categories in order to accelerate and
    support our growth and to expand our markets. We expect our
    operating expenses in 2010 to continue to increase in absolute
    dollars as compared to 2009, as the capacity we have added in
    prior years is more fully utilized and we continue to create
    operating leverage.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Product development.</I>&#160;&#160;Product development
    expense consists primarily of personnel costs for our product
    development employees and executives and fees to contract
    development vendors. Our product development efforts are focused
    primarily on increasing the functionality and enhancing the ease
    of use of our on demand software solutions and expanding our
    suite of on demand software solutions. In 2008, we established a
    product development and service center in Hyderabad, India to
    take advantage of strong technical talent at lower personnel
    costs compared to the United States. We expect our product
    development expenses in 2010 to increase in absolute dollars.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales and marketing.</I>&#160;&#160;Sales and marketing
    expense consists primarily of personnel costs for our sales,
    marketing and business development employees and executives,
    travel and entertainment and marketing programs. Marketing
    programs consist of advertising, tradeshows, user conferences,
    public relations, industry sponsorships and affiliations and
    product marketing. In addition, sales and marketing expense
    includes amortization of certain purchased intangible assets,
    including customer relationships and key vendor and supplier
    relationships obtained in connection with our acquisitions. We
    expect our sales and marketing expense in 2010 to increase in
    absolute dollars.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General and administrative.</I>&#160;&#160;General and
    administrative expense consists of personnel costs for our
    executive, finance and accounting, human resources, management
    information systems and legal personnel, as well as legal,
    accounting and other professional service fees and other
    corporate expenses. We expect our general and administrative
    expense in 2010 to increase in absolute dollars as compared to
    2009 primarily due to the increased costs of operating as a
    public company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    Expense, Net</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest expense, net, consists primarily of interest income and
    interest expense. Interest income represents earnings from our
    cash, cash equivalents and short-term investments. Interest
    expense is associated with our term loan, revolver, secured
    promissory note, promissory note issued to preferred
    stockholders, capital lease obligations and certain
    acquisition-related liabilities. Total amounts outstanding under
    our interest-bearing obligations at December&#160;31, 2007, 2008
    and 2009 include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,583
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolver
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Secured promissory note
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Promissory notes issued to preferred stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,129
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interesting bearing acquisition-related liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect interest expense to decrease in absolute dollars and
    as a percentage of our total revenue in the periods following
    this public offering as we anticipate repaying a portion of our
    outstanding term loan and repaying all of our secured promissory
    note and promissory notes issued to preferred stockholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, we have incurred annual operating losses and have
    not benefited from these losses and have only provided for state
    and foreign income taxes. As of December&#160;31, 2009, we had
    net operating loss carry forwards for federal and state income
    tax purposes of approximately $67.2&#160;million. In December
    2009, based on current year income and projected future year
    income, we concluded that it is more likely than not that the
    net deferred tax assets recorded will be realized. As such, we
    deemed it appropriate to decrease this valuation allowance by
    $27.0&#160;million during 2009. If not utilized, our federal net
    operating loss and tax credit carry forwards will begin to
    expire in 2018. While not currently subject to an annual
    limitation, the utilization of these carry forwards may become
    subject to an annual limitation because of provisions in the
    Internal Revenue
</DIV>
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    Code that are applicable if we experience an &#147;ownership
    change,&#148; which may occur, for example, as a result of this
    offering or other issuances of stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Critical
    Accounting Policies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our consolidated financial statements are prepared in accordance
    with GAAP. In many cases, the accounting treatment of a
    particular transaction is specifically dictated by GAAP and does
    not require management&#146;s judgment in its application, while
    in other cases, management&#146;s judgment is required in
    selecting among available alternative accounting standards that
    allow different accounting treatment for similar transactions.
    The preparation of our consolidated financial statements and
    related disclosures require us to make estimates, assumptions
    and judgments that affect the reported amount of assets,
    liabilities, revenue, costs and expenses, and related
    disclosures. We base our estimates and assumptions on historical
    experience and other factors that we believe to be reasonable
    under the circumstances. In some instances, we could reasonably
    use different accounting estimates, and in some instances
    results could differ significantly from our estimates. We
    evaluate our estimates and assumptions on an ongoing basis. To
    the extent that there are differences between our estimates and
    actual results, our future financial statement presentation,
    financial condition, results of operations and cash flows will
    be affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the assumptions and estimates associated with
    revenue recognition, accounts receivable, business combinations,
    goodwill and other intangible assets with indefinite lives,
    impairment of long-lived assets, intangible assets, stock-based
    compensation, income taxes and capitalized product development
    costs have the greatest potential impact on our consolidated
    financial statements. Therefore, we believe the accounting
    policies discussed below are critical to understanding our
    historical and future performance, as these policies relate to
    the more significant areas involving our management&#146;s
    judgments, assumptions and estimates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derive our revenue from three primary sources: our on demand
    software solutions; our on premise software solutions; and
    professional and other services. We commence revenue recognition
    when all of the following conditions are met:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there is persuasive evidence of an arrangement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the solution and/or service has been provided to the customer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the collection of the fees is probable;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount of fees to be paid by the customer is fixed or
    determinable.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For multi-element arrangements that include multiple solutions
    <FONT style="white-space: nowrap">and/or</FONT>
    services, we allocate arrangement consideration to all
    deliverables that have stand-alone value based on their relative
    selling prices. In such circumstances, we utilize the following
    hierarchy to determine the selling price to be used for
    allocating revenue to deliverables as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Vendor specific objective evidence (VSOE), if
    available.</I>&#160;&#160;The price at which we sell the element
    in a separate stand-alone transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Third-party evidence of selling price (TPE), if VSOE of
    selling price is not available.</I>&#160;&#160;Evidence from us
    or other companies of the value of a largely interchangeable
    element in a transaction;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Estimated selling price, if neither VSOE nor TPE of selling
    price is available.</I>&#160;&#160;Our best estimate of the
    stand-alone selling price of an element in a transaction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, we sell on demand software solutions with
    professional services. In such cases, we allocate arrangement
    consideration based on our estimated selling price of the on
    demand software solution and VSOE of the selling price of the
    professional services.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">On Demand
    Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our on demand revenue consists of license and subscription fees,
    transaction fees related to certain of our software-enabled
    value-added services and commissions derived from us selling
    certain risk mitigation services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    License and subscription fees are comprised of a charge billed
    at the initial order date and monthly or annual subscription
    fees for accessing our on demand software solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The license fee billed at the initial order date is recognized
    as revenue on a straight-line basis over the longer of the
    contractual term or the period in which the customer is expected
    to benefit, which we consider to be four years. Recognition
    starts once the product has been activated. Revenue from monthly
    and annual subscription fees is recognized on a straight-line
    basis over the access period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We act as an insurance agent as a part of our risk mitigation
    services. We recognize the commissions related to these services
    ratably over the policy term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recognize revenue from transaction fees derived from certain
    of our software-enabled value-added services as the related
    services are performed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">On
    Premise Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue from our on premise software solutions is comprised of
    an annual term license, which includes maintenance and support.
    Customers can renew their annual term license for additional
    one-year terms at renewal price levels. We recognize the annual
    term license on a straight-line basis over the license term.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Professional
    and Other Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Professional and other revenue is recognized as the services are
    rendered for time and material contracts. Training revenues are
    recognized after the services are performed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For several of our solutions, we invoice our customers prior to
    the period in which service is provided. Accounts receivable
    represent trade receivables from customers when we have invoiced
    for software solutions
    <FONT style="white-space: nowrap">and/or</FONT>
    services and we have not yet received payment. We present
    accounts receivable net of an allowance for doubtful accounts.
    We maintain an allowance for doubtful accounts for estimated
    losses resulting from the inability of customers to make
    required payments, or the customer cancelling prior to the
    service being rendered. In doing so, we consider the current
    financial condition of the customer, the specific details of the
    customer account, the age of the outstanding balance, the
    current economic environment and historical credit trends. As a
    result of a portion of our allowance being for services not yet
    rendered, a portion of our allowance is charged as an offset to
    deferred revenue, which does not have an effect on the statement
    of operations. Any change in the assumptions used in analyzing a
    specific account receivable might result in an additional
    allowance for doubtful accounts being recognized in the period
    in which the change occurs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Business
    Combinations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When we acquire businesses, we allocate the total consideration
    to the fair value of tangible assets and liabilities and
    identifiable intangible assets acquired. Any residual purchase
    price is recorded as goodwill. The allocation of the purchase
    price requires management to make significant estimates in
    determining the fair values of assets acquired and liabilities
    assumed, especially with respect to intangible assets. These
    estimates are based on the application of valuation models using
    historical experience and information obtained from the
    management of the acquired companies. These estimates can
    include, but are not limited to, the cash flows that an asset is
    expected to generate in the future, the appropriate weighted
    average cost of capital and the cost savings expected to be
    derived from acquiring an asset. These estimates are inherently
    uncertain and unpredictable. In addition, unanticipated events
    and circumstances may occur which may affect the accuracy or
    validity of these estimates. Beginning in 2009, we began
    including the fair value of contingent consideration
</DIV>
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    to be paid within the total consideration allocated to the fair
    value of the assets acquired and the liabilities assumed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Goodwill
    and Other Intangible Assets with Indefinite Lives</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We test goodwill and other intangible assets with indefinite
    lives for impairment on an annual basis in the fourth quarter of
    each year. Additionally, we test goodwill and other intangible
    assets with indefinite lives in the interim if events and
    circumstances indicate that goodwill and other intangible assets
    with indefinite lives may be impaired. The events and
    circumstances that we consider include the significant
    under-performance relative to projected future operating results
    and significant changes in our overall business
    <FONT style="white-space: nowrap">and/or</FONT>
    product strategies. We evaluate impairment of goodwill and other
    intangible assets with indefinite lives using a two-step
    process. The first step involves a comparison of the fair value
    of a reporting unit with its carrying amount. If the carrying
    amount of the reporting unit exceeds its fair value, the second
    step of the process involves a comparison of the fair value and
    carrying amount of the goodwill and other intangible assets with
    indefinite lives of that reporting unit. If the carrying amount
    of the goodwill and other intangible assets with indefinite
    lives of a reporting unit exceeds the fair value of that
    goodwill and other intangible assets with indefinite lives, we
    recognize an impairment loss equal to the amount by which the
    carrying amount exceeds the fair market value of the asset. If
    an event occurs that causes us to revise our estimates and
    assumptions used in analyzing the value of our goodwill and
    other intangible assets with indefinite lives, the revision
    could result in a non-cash impairment charge that could have a
    material impact on our financial results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recorded goodwill and other intangible assets with indefinite
    lives in conjunction with all seven of our business acquisitions
    completed since the beginning of 2007. We test goodwill for
    impairment based on a single reporting unit. We believe we
    operate in a single reporting unit because our chief operating
    decision maker does not regularly review our operating results
    other than at a consolidated level for purposes of decision
    making regarding resource allocation and operating performance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Impairment
    of Long-lived Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We perform an impairment review of long-lived assets held and
    used whenever events or changes in circumstances indicate that
    the carrying value may not be recoverable. Factors we consider
    important that could trigger an impairment review include, but
    are not limited to, significant under-performance relative to
    projected future operating results, significant changes in the
    manner of our use of the acquired assets or our overall business
    <FONT style="white-space: nowrap">and/or</FONT>
    product strategies and significant industry or economic trends.
    When we determine that the carrying value of a long-lived asset
    may not be recoverable based upon the existence of one or more
    of these indicators, we determine the recoverability by
    comparing the carrying amount of the asset to net future
    undiscounted cash flows that the asset is expected to generate.
    We would then recognize an impairment charge equal to the amount
    by which the carrying amount exceeds the fair market value of
    the asset.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Intangible
    Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Intangible assets consist of acquired developed product
    technologies, acquired customer relationships, vendor
    relationships, non-competition agreements and trade names. We
    record intangible assets at fair value and amortize those with
    finite lives over the shorter of the contractual life or the
    estimated useful life. We estimate the useful lives of acquired
    developed product technologies and customer relationships based
    on factors that include the planned use of each developed
    product technology and the expected pattern of future cash flows
    to be derived from each developed product technology and
    existing customer relationships. We include amortization of
    acquired developed product technologies in cost of revenue,
    amortization of acquired customer relationships in sales and
    marketing expenses and amortization of vendor relationships and
    non-competition agreements in general and administrative
    expenses in our consolidated statements of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock-Based
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to January&#160;1, 2006, we accounted for share-based
    awards, including stock options, to employees using the
    intrinsic value method. Under the intrinsic value method,
    compensation expense was measured on
</DIV>
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    the date of award as the difference, if any, between the deemed
    fair value of our common stock and the option exercise price,
    multiplied by the number of options granted. The option exercise
    prices and fair value of our common stock are determined by our
    board of directors based on a review of various objective and
    subjective factors. No compensation expense was recorded for
    stock options issued to employees prior to January&#160;1, 2006
    because all options were granted in fixed amounts and with fixed
    exercise prices at least equal to the fair value of our common
    stock at the date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective January&#160;1, 2006, we changed our accounting
    treatment to recognize compensation expense based on the fair
    value of all share-based awards granted, modified, repurchased
    or cancelled on or after that date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our stock-based compensation is measured on the grant date based
    on the fair value of the award and is recognized as an expense
    over the requisite service period, which is generally the
    vesting period, on a straight-line basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value of share-based awards is calculated through the
    use of option pricing models. These models require subjective
    assumptions regarding future share price volatility and the
    expected life of each option grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value of employee stock options granted since
    January&#160;1, 2009 was estimated at the grant date using the
    Black-Scholes option pricing model by applying the following
    weighted average assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk-free interest rates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.5-4.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected option life (in years)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50-60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At each stock option grant date, we utilized peer group data to
    calculate our expected volatility. Expected volatility was based
    on historical and expected volatility rates of comparable
    publicly traded peers. The expected life of each option grant is
    based on existing employee exercise patterns and our historical
    pre-vested forfeiture experience. The risk-free interest rate
    was based on the treasury yield rate with a maturity
    corresponding to the expected option life assumed at the grant
    date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Changes to the underlying assumptions may have a significant
    impact on the underlying value of the stock options, which could
    have a material impact on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted stock options at exercise prices above the fair
    value of our common stock as of the grant date, as determined by
    our compensation committee on a contemporaneous basis. Given the
    absence of any active market for our common stock, the fair
    value of the common stock underlying stock options granted was
    determined by our compensation committee, with input from our
    management. In arriving at these valuations, our compensation
    committee and management also considered contemporaneous
    third-party valuations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Valuation
    of Common Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009 and in the quarter ended March&#160;31, 2010, we granted
    options to purchase shares of our common stock as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fair Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Grant Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options Granted</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,437,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    571,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,763,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,721,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    54
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Significant
    Factors in Determining Fair Value</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For all grant dates in 2009 and 2010, we granted employees
    options at exercise prices greater than the fair value of the
    underlying common stock at the time of grant, as determined by
    our compensation committee on a contemporaneous basis. To
    determine the fair value of our common stock, we consider many
    factors, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our current and historical operating performance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our expected future operating performance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our financial condition at the grant date;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the liquidation rights and other preferences of our preferred
    stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any recent privately negotiated sales of our securities to
    independent third parties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    input from management;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the lack of marketability of our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the potential future marketability of our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the business risks inherent in our business and in technology
    companies, generally;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the market performance of comparable publicly traded
    companies;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the U.S.&#160;and global capital market conditions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Valuation
    Methodologies Used in Determining Fair Value</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In valuing our common stock, we utilize a probability weighted
    expected return method to estimate the value of our common stock
    based upon an analysis of expected future cash flows considering
    possible future liquidity events, as well as the liquidation
    rights and other preferences of our preferred stock. In
    determining the value of our common stock on each grant date in
    2009 and in February 2010, we considered two possible scenarios:
    the completion of an initial public offering, or the IPO
    Scenario, and remaining private, or the Private Scenario. For
    purposes of determining the fair market value of our common
    stock on each grant date in 2009 and February 2010, we estimated
    the probability of the future liquidity event being our initial
    public offering at 75% and remaining a private company at 25%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In valuing our common stock in the IPO Scenario, we utilize a
    market approach that estimates the fair value of a company by
    applying to that company the market multiples of comparable
    publicly traded companies. Based on the range of these observed
    multiples, we apply judgment in determining an appropriate
    multiple to apply to our metrics in order to derive an
    indication of value. In connection with valuing our common stock
    under the IPO Scenario for grants in February, June and
    September 2009, we determined fair value based on the
    probability of going public in 2009, 2010 or 2011. In connection
    with valuing our common stock under the IPO Scenario for grants
    in December 2009 and February 2010, we determined the
    probability of going public in 2010 or 2011. For each of the
    grants in 2009 and February 2010, we concluded that the market
    value of invested capital to revenue multiple would yield the
    most appropriate indication of value for us based on our
    projections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In valuing our common stock in the Private Scenario, we apply
    the income and market approaches utilizing a terminal period
    value and a residual revenue growth rate of 5.5% in the terminal
    year based on our expectation of long-term growth. In connection
    with valuing our common stock under the Private Scenario, we
    apply the income approach utilizing discounted cash flows. We
    concluded that this was the best indication of value because,
    beginning in the fourth quarter of 2008, we had moved towards a
    long-term expectation of earnings.
</DIV>
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    <BR>
    55
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Fair
    Value of Stock Option Grants in 2009 and 2010</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>February 2009.</I>&#160;&#160;In connection with our stock
    option grants in February 2009, we considered the factors
    described above, including the continued downturn in the
    U.S.&#160;and global capital markets and its impact on our short
    term projected revenue growth and the market value of invested
    capital of comparable publicly traded peers, and a
    contemporaneous valuation report, dated February&#160;27, 2009,
    and utilized the valuation methodologies described above to
    arrive at a fair value of our common stock of $2.72 per share
    and granted options at an exercise price of $3.00 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>June 2009.</I>&#160;&#160;In connection with our stock option
    grants in June 2009, we considered the factors described above,
    including the slight recovery of the U.S.&#160;and global
    capital markets and its impact on our short term projected
    revenue growth and comparable publicly traded peers since the
    grants in February 2009, as well as a contemporaneous valuation
    report, dated June&#160;4, 2009, and utilized the valuation
    methodologies described above to arrive at a fair value of our
    common stock of $2.88 per share and granted options at an
    exercise price of $3.00 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>September 2009.</I>&#160;&#160;In connection with our stock
    option grants in September 2009, we considered the factors
    described above, including the continued recovery of the
    U.S.&#160;and global capital markets offset by the reduction in
    our projected revenue growth due to mixed expectations of
    projected macroeconomic conditions since the grants in June
    2009, as well as a contemporaneous valuation report, dated
    September&#160;18, 2009, and utilized the valuation
    methodologies described above to arrive at a fair value of our
    common stock of $2.52 per share and granted options at an
    exercise price of $3.00 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>October and November 2009.</I>&#160;&#160;In connection with
    our stock options grants in October and November, we continued
    to use the $2.52 per share valuation analyzed in September. Our
    board of directors reviewed the events since the grant of
    options in September 2009 and the continued recovery of the
    U.S.&#160;capital markets and concluded that there had been no
    significant change in our performance to cause an increase or
    decrease in the per share valuation of our common stock and
    granted options at an exercise price of $3.00 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>December 2009.</I>&#160;&#160;In connection with our stock
    option grants in December 2009, we considered the factors
    described above, including our improved sales performance and
    outlook and the improved market performance of our comparable
    public company peers since the September 2009 grants, as well as
    a contemporaneous valuation report, dated December&#160;15,
    2009, and utilized the valuation methodologies described above
    to arrive at a fair value of our common stock of $2.83 per share
    and granted options at an exercise price of $3.00 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>February 2010.</I>&#160;&#160;In connection with our stock
    option grants in February 2010, we considered the factors
    described above, including continued improvement in our sales
    performance and outlook and the improved market performance of
    our comparable public company peers since the grant in December
    2009, as well as a contemporaneous valuation report, dated
    February&#160;25, 2010, and utilized the valuation methodologies
    described above to arrive at a fair value of our common stock of
    $3.37 per share and granted options at an exercise price of
    $3.75 per share in February 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income taxes are provided based on the liability method, which
    results in income tax assets and liabilities arising from
    temporary differences. Temporary differences are differences
    between the tax basis of assets and liabilities and their
    reported amounts in the financial statements that will result in
    taxable or deductible amounts in future years. The liability
    method requires the effect of tax rate changes on current and
    accumulated deferred income taxes to be reflected in the period
    in which the rate change was enacted. The liability method also
    requires that deferred tax assets be reduced by a valuation
    allowance unless it is more likely than not that the assets will
    be realized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may recognize the tax benefit from uncertain tax positions
    only if it is at least more likely than not that the tax
    position will be sustained on examination by the taxing
    authorities, based on the technical merits of the position. The
    tax benefits recognized in the financial statements from such a
    position should be measured based on the largest benefit that
    has a greater than fifty percent likelihood of being realized
    upon
</DIV>
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    <BR>
    56
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    settlement with the taxing authorities. Upon our adoption of the
    related standard, there was no liability for uncertain tax
    positions due to the fact that there were no material identified
    tax benefits that were considered uncertain positions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We establish valuation allowances when necessary to reduce
    deferred tax assets to the amounts expected to be realized. We
    evaluate the need for, and the adequacy of, valuation allowances
    based on the expected realization of our deferred tax assets.
    The factors used to assess the likelihood of realization include
    historical earnings, our latest forecast of taxable income and
    available tax planning strategies that could be implemented to
    realize the net deferred tax assets. In December 2009, based on
    current year income and projected future year income, we
    concluded that it is more likely than not that the net deferred
    tax assets recorded will be realized. As such, we deemed it
    appropriate to decrease the valuation allowance by
    $27.0&#160;million during 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our effective tax rates are primarily affected by the amount of
    our taxable income or losses in the various taxing jurisdictions
    in which we operate, the amount of federal and state net
    operating losses and tax credits, the extent to which we can
    utilize these net operating loss carryforwards and tax credits
    and certain benefits related to stock option activity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capitalized
    Product Development Costs</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We capitalize specific product development costs, including
    costs to develop software products or the software components of
    our solutions to be marketed to our customers, as well as
    software programs to be used solely to meet our internal needs.
    The costs incurred in the preliminary stages of development
    related to research, project planning, training, maintenance and
    general and administrative activities, and overhead costs are
    expensed as incurred. The costs of relatively minor upgrades and
    enhancements to the software are also expensed as incurred. Once
    an application has reached the development stage, internal and
    external costs incurred in the performance of application
    development stage activities, including materials, services and
    payroll-related costs for employees are capitalized, if direct
    and incremental, until the software is substantially complete
    and ready for its intended use. Capitalization ceases upon
    completion of all substantial testing. We also capitalize costs
    related to specific upgrades and enhancements when it is
    probable the expenditures will result in additional
    functionality. Capitalized costs are recorded as part of
    property and equipment. Internal use software is amortized on a
    straight-line basis over its estimated useful life, generally
    three years. We capitalized $1.5&#160;million and
    $1.4&#160;million of product development costs during the years
    ended December&#160;31, 2008 and 2009, respectively, and
    recognized amortization expense of $0.8&#160;million,
    $0.9&#160;million and $1.3&#160;million during the years ended
    December&#160;31, 2007, 2008 and 2009, respectively, included as
    a component of cost of revenue. Unamortized product development
    cost was $2.9&#160;million and $3.1&#160;million at
    December&#160;31, 2008 and 2009, respectively. Management
    evaluates the useful lives of these assets on an annual basis
    and tests for impairment whenever events or changes in
    circumstances occur that could impact the recoverability of
    these assets. There were no impairments to internal use software
    during the years ended December&#160;31, 2007, 2008 or 2009.
</DIV>
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    <BR>
    57
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables set forth our results of operations for the
    specified periods. The period-to-period comparison of financial
    results is not necessarily indicative of future results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statements of Operations Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of
    revenue<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Product
    development<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Sales and
    marketing<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and
    administrative<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,633
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (354
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,510
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,152
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,528
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,506
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes stock-based compensation expense as follows:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our results of operations for the
    specified periods as a percentage of our revenue for those
    periods. The period-to-period comparison of financial results is
    not necessarily indicative of future results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(as a percentage of total revenue)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.0
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.8
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.2
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.8
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.3
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18.5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.8
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2008 and 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands, except dollar per unit data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,722
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (49.1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,129
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11.5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    140,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    On demand unit metrics:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending on demand units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Average on demand units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,128
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    990
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand revenue per average on demand unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand revenue.</I>&#160;&#160;Our on demand revenue
    increased $33.2&#160;million, or 34.9%, in 2009 as compared to
    2008, primarily due to a 31.5% increase in the average on demand
    units managed with our on demand software solutions and an
    increase in the number of our on demand software solutions
    utilized by our existing customer base.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On premise revenue.</I>&#160;&#160;On premise revenue
    decreased $3.7&#160;million, or (49.1)%, in 2009 as compared to
    2008, primarily due to the impact of our decision to cease
    actively marketing our on premise software solutions and our
    efforts to migrate customers of our on premise software
    solutions to our on demand software
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    59
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    solutions. In addition, our on premise software solution for
    conventional multi-family properties, RentRoll, was discontinued
    and was no longer supported after July 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Professional and other revenue.</I>&#160;&#160;Professional
    and other services revenue decreased $1.1&#160;million, or
    (11.5)%, in 2009 as compared to 2008, primarily due to a
    decrease in revenue from training and consulting services and a
    decrease in revenue from sub-meter installations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Total revenue.</I>&#160;&#160;Our total revenue increased
    $28.3&#160;million, or 25.2%, in 2009 as compared to 2008,
    primarily due to an increase in rental property units managed
    with our on demand software solutions and improved penetration
    of our on demand software solutions into our customer base.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand unit metrics.</I>&#160;&#160;As of
    December&#160;31, 2009, one or more of our on demand software
    solutions was utilized in the management of 4.6&#160;million
    rental housing units, representing an increase of
    718,000&#160;units, or 18.7%, as compared to 2008. The increase
    in the number of rental units managed by one or more of our on
    demand software solutions was primarily due to new customer
    sales and marketing efforts, our 2009 acquisitions and to a
    lesser degree, migration of our current customers from our on
    premise software solutions to our on demand software solutions.
    In 2009, our on demand revenue per average on demand unit was
    $31.10, representing an increase of $0.76, or 2.5%, as compared
    to 2008, primarily due to improved penetration of our on demand
    software solutions into our customer base.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,253
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    58,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of revenue.</I>&#160;&#160;Cost of revenue increased
    $12.5&#160;million, or 27.0%, in 2009 as compared to 2008. The
    increase in cost of revenue was primarily due to: a
    $10.2&#160;million increase from costs related to the increased
    sales of our solutions; a $1.1&#160;million increase in non-cash
    amortization of acquired technology as a result of our 2008 and
    2009 acquisitions; a $0.8&#160;million increase in property and
    equipment depreciation expense resulting from expanding our
    infrastructure to support revenue delivery activities; and
    $0.3&#160;million increase in
    <FONT style="white-space: nowrap">stock-based</FONT>
    compensation related to our professional services and data
    center operations personnel.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,237
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (123
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total product development expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,360
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Product development.</I>&#160;&#160;Product development
    expense decreased $1.4&#160;million, or (4.7)%, in 2009 as
    compared to 2008. The decrease in product development expense
    was primarily due to: the absence of non-recurring charges
    related to the discontinuance of a business development project
    in 2008; a decrease in third-party development costs; and a
    decrease in depreciation of property and equipment. The decrease
    was partially offset by an increase in stock-based compensation
    in 2009 related to our product development personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    60
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,649
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,095
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total sales and marketing expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,881
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales and marketing.</I>&#160;&#160;Sales and marketing
    expense increased $3.9&#160;million, or 16.2%, in 2009 as
    compared to 2008. The increase in sales and marketing expense
    was primarily due to: a $1.7&#160;million increase in non-cash
    intangible amortization related to our 2008 and 2009
    acquisitions, which included acquired customer relationships and
    key supplier and vendor relationships; a $1.5&#160;million
    increase in personnel expense and a $1.0&#160;million increase
    in marketing program expense in 2009 as part of our strategy to
    expand our market share and further penetrate our existing
    customer base with sales of additional on demand software
    solutions; and a $0.2&#160;million increase in stock-based
    compensation related to our sales and marketing personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,156
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total general and administrative expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General and administrative.</I>&#160;&#160;General and
    administrative expense increased $6.1&#160;million, or 43.0%, in
    2009 as compared to 2008. The increase in general and
    administrative expense was primarily due to: a $2.8&#160;million
    increase in personnel expense and expense related to accounting,
    management information systems, legal, human resources and
    business development staff to support the growth in our
    business; a $0.7&#160;million increase in legal fees primarily
    related to pursuing and closing acquisition opportunities; a
    $0.4&#160;million increase in stock-based compensation; and an
    increase in various other general and administrative expenses
    driven by the investments in our administrative functions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    Expense, Net</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest expense, net, increased $2.4&#160;million, or 110.4%,
    in 2009 as compared to 2008. The increase in interest expense,
    net, was primarily due to higher average debt balances related
    to the financing of our acquisitions and the issuance of notes
    payable to holders of our preferred stock in December 2008 in
    payment of accrued dividends. See Note&#160;7 to Notes to
    Consolidated Financial Statements for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Provision
    for Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not incurred federal income taxes due to the carry
    forward of net operating losses. At December&#160;31, 2009, we
    had a net operating loss carry forward for federal income tax
    purposes of approximately $67.2&#160;million that will begin to
    expire in 2018. We have historically offset all of our net
    deferred tax assets by a valuation allowance. However, in
    December&#160;2009, based on current year income and our
    projections of future income, we concluded it was more likely
    than not that certain of our deferred tax assets would be
    realizable, and therefore the valuation allowance was reduced by
    $27.0&#160;million.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    61
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2007 and 2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands, except dollar per unit data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,978
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (34.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    83,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    On demand unit metrics:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending on demand units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,033
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Average on demand units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,293
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    845
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand revenue per average on demand unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand revenue.</I>&#160;&#160;On demand revenue increased
    $32.6&#160;million, or 52.1%, in 2008 as compared to 2007,
    primarily due to an increase in rental property units managed
    with our on demand software solutions and an increase in the
    number of our on demand software solutions utilized by our
    existing customer base.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On premise revenue.</I>&#160;&#160;On premise revenue
    decreased $4.0&#160;million, or (34.4)%, in 2008 as compared to
    2007. The revenue decrease was primarily due to: our higher
    focus on sales of our on demand software solutions; a decrease
    in the number of rental property units utilizing our on premise
    software solutions, which was a result of customers converting
    to our on demand software solutions, not renewing their on
    premise software license or customers&#146; property sites
    turning over due to their sale or change in property management
    company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Professional and other revenue.</I>&#160;&#160;Professional
    and other revenue increased $0.4&#160;million, or 3.9%, in 2008
    as compared to 2007, primarily due to increased consulting and
    implementation activity associated with new sales of our on
    demand software solutions, which was partially offset by lower
    training and seminar revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Total revenue.</I>&#160;&#160;Our total revenue increased
    $29.0&#160;million, or 34.7%, in 2008 as compared to 2007,
    primarily due to an increase in rental property units managed
    with our on demand software solutions and improved penetration
    of our on demand software solutions into our customer base.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>On demand unit metrics.</I>&#160;&#160;As of
    December&#160;31, 2008, one or more of our on demand software
    solutions was utilized in the management of 3.8&#160;million
    rental property units, an increase of approximately
    1.0&#160;million units, or 36.9%, as compared to 2007. The
    increase in the number of rental property units managed by one
    or more of our on demand software solutions was primarily due to
    new customer sales and marketing efforts, our 2008 acquisitions
    and, to a lesser degree, migration of our current customers from
    our on premise software solutions. In 2008, our on demand
    revenue per average on demand unit was $30.34, representing an
    increase of $3.04, or 11.1%, as compared to 2007, primarily due
    to improved penetration of our on demand software solutions into
    our customer base.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,647
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,628
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,355
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    62
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of revenue.</I>&#160;&#160;Cost of revenue increased
    $10.4&#160;million, or 29.0%, in 2008 as compared to 2007. The
    increase in cost of revenue was primarily due to: a
    $8.6&#160;million increase from costs related to the increased
    sales of our solutions; a $1.3&#160;million increase in property
    and equipment depreciation expense resulting from expanding our
    infrastructure to support revenue delivery activities; and a
    $0.3&#160;million increase in non-cash amortization of acquired
    technology as a result of our 2008 acquisitions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,459
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,249
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,043
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Product development.</I>&#160;&#160;Product development
    expense increased $7.1&#160;million, or 32.7%, in 2008 as
    compared to 2007. The increase in product development expense
    was primarily due to: a $3.8&#160;million increase in personnel
    expense primarily related to the associated costs to support our
    growth initiatives and the addition of new solutions; a
    $1.0&#160;million increase in depreciation of property and
    equipment from expanding our infrastructure to support our
    revenue growth; a $0.8&#160;million non-cash asset disposal
    resulting from the discontinuance of a business development
    project in 2008; and a $0.5&#160;million increase in stock-based
    compensation related to our product development personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,215
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,649
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total sales and marketing expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,876
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales and marketing.</I>&#160;&#160;Sales and marketing
    expense increased $5.9&#160;million, or 32.6%, in 2008 as
    compared to 2007. The increase in sales and marketing expense
    was primarily due to: a $3.2&#160;million increase in personnel
    expense related to expanding our sales and marketing workforce
    as part of our strategy to increase our market share and further
    penetrate our existing customer base with additional on demand
    software solutions; a $1.5&#160;million increase in marketing
    program expense in support of our growth strategy; a
    $0.4&#160;million increase in property and equipment
    depreciation expense; and a $0.2&#160;million increase in
    stock-based compensation related to our sales and marketing
    personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Change</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Change</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,156
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total general and administrative expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General and administrative.</I>&#160;&#160;General and
    administrative expense increased $4.4&#160;million, or 44.9%, in
    2008 as compared to 2007. The increase in general and
    administrative expense was primarily due to: a $2.4&#160;million
    increase in personnel expense related to an increase in
    accounting, management information systems, legal and human
    resources personnel to support the growth in our business; a
    $0.8&#160;million increase in depreciation of property and
    equipment in 2008 driven by the investments in our
    administrative support functions; a $0.3&#160;million increase
    in stock-based compensation related to our general and
    administrative personnel; and an increase various other general
    and administrative expenses driven by the investment in our
    administrative functions necessary to support our growth.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    63
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    Expense, Net</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest expense, net, increased $0.6&#160;million, or 42.5%, in
    2008 as compared to 2007. The increase in interest expense, net,
    was primarily due to higher average debt balances related to the
    financing of our acquisition activities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Provision
    for Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have recorded a valuation allowance related to income taxes
    to reflect uncertainties associated with the realization of
    deferred tax assets. As a result, the benefit from income taxes
    is zero in 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Quarterly
    Results of Operations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents our unaudited consolidated
    quarterly results of operations for the eight fiscal quarters
    ended December&#160;31, 2009. This information is derived from
    our unaudited consolidated financial statements, and includes
    all adjustments, consisting only of normal recurring
    adjustments, that we consider necessary for fair statement of
    our financial position and operating results for the quarters
    presented. Operating results for these periods are not
    necessarily indicative of the operating results for a full year.
    Historical results are not necessarily indicative of the results
    to be expected in future periods. You should read this data
    together with our consolidated financial statements and the
    related notes to these financial statements included elsewhere
    in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,462
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,069
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,140
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,437
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,936
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,982
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,942
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,739
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,268
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Cost of
    revenue<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,709
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,928
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,648
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,608
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,428
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Operating expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Product
    development<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Sales and
    marketing<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,690
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,428
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    General and
    administrative<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,648
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,552
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,130
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,905
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,680
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,907
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Operating (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (409
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (202
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    289
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (32
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,993
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,863
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (460
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (418
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (493
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (781
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (985
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (998
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,123
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,422
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net (loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (869
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (620
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (204
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (813
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,196
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (530
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,246
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (869
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (685
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (204
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    910
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes stock-based compensation expense as follows:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Total stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    355
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    613
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    901
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    64
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our results of operations for the
    specified periods as a percentage of our revenue for those
    periods. The period-to-period comparison of financial results is
    not necessarily indicative of future results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom">
    <B>(as a percentage of total revenue)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cost of revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Software and services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Operating expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Operating (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.6
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.8
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.6
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.7
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.0
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.7
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net (loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.7
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.6
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (68.8
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.6
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.7
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4.6
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our revenue increased in each of the quarters presented above
    primarily as a result of increases in rental property units
    managed with our on demand software solutions, successful
    efforts to increase the number of on demand software solutions
    utilized by our customer base and our 2008 and 2009
    acquisitions. To date, we have not experienced any significant
    impact on our results of operations due to seasonality.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of revenue increased over the course of the quarters
    presented above primarily due to increase in operating costs
    related to the increased sales of our solutions; higher
    technology support costs in order to support our growth; the
    cost of revenue added by our acquisitions; and higher non-cash
    amortization of technology acquired through our acquisitions.
    While cost of revenue increased in absolute dollars, gross
    margin has remained relatively consistent in each of the
    quarters presented.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Operating expense has steadily increased in absolute dollars
    over the course of the quarters presented above primarily due to
    increased personnel related expenses in support of our growth
    initiatives in addition to incremental expenses associated with
    acquired companies. Operating expense may vary as a result of
    the timing of sales and marketing activities, the timing of
    acquisitions or the discontinuance of projects, among other
    factors. For example, operating expense decreased from the
    fourth quarter of 2008 to the first quarter of 2009 primarily
    due to a decline in product development expense attributable to
    the discontinuance of a business development project during the
    fourth quarter of 2008. Additionally, during the fourth quarter
    of 2009, operating expense increased as a percentage of revenue
    when compared to the prior three quarters primarily as a result
    of an increase in general and administrative expense associated
    with higher professional fees and other costs related to
    pursuing acquisition opportunities combined with incremental
    general and administrative expense associated with the
    acquisitions we completed during the third and fourth quarters
    of 2009. Since our inception, we have made significant
    investments in developing new solutions, enhancing existing
    solutions, and expanding our sales and marketing efforts in
    order to increase our market share and to further penetrate our
    existing customer base with additional on demand software
    solutions. As a result of these investments, we have experienced
    significant revenue growth, which has resulted in a trend of
    decreased operating expense as a percentage of our total revenue.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Reconciliation
    of Quarterly Non-GAAP&#160;Financial Measures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We anticipate that our investor and analyst presentations will
    include Adjusted EBITDA. We define Adjusted EBITDA as net (loss)
    income plus depreciation and asset impairment, amortization of
    intangible assets, interest expense, net, income tax expense
    (benefit), stock-based compensation expense and
    acquisition-related expense. We believe that the use of Adjusted
    EBITDA is useful to investors and other users of our financial
    statements in evaluating our operating performance because it
    provides them with an additional tool to compare business
    performance across companies and across periods. We believe that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA provides investors and other users of our
    financial information consistency and comparability with our
    past financial performance, facilitates period-to-period
    comparisons of operations and facilitates comparisons with our
    peer companies, many of which use similar non-GAAP financial
    measures to supplement their GAAP results;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    it is useful to exclude certain non-cash charges, such as
    depreciation and asset impairment, amortization of intangible
    assets and stock-based compensation and non-core operational
    charges, such as acquisition-related expense, from Adjusted
    EBITDA because the amount of such expenses in any specific
    period may not directly correlate to the underlying performance
    of our business operations and these expenses can vary
    significantly between periods as a result of new acquisitions,
    full amortization of previously acquired tangible and intangible
    assets or the timing of new stock-based awards, as the case may
    be.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use Adjusted EBITDA in conjunction with traditional GAAP
    operating performance measures as part of our overall assessment
    of our performance, for planning purposes, including the
    preparation of our annual operating budget, to evaluate the
    effectiveness of our business strategies and to communicate with
    our board of directors concerning our financial performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not place undue reliance on Adjusted EBITDA as our only
    measure of operating performance. Adjusted EBITDA should not be
    considered as a substitute for other measures of liquidity or
    financial performance reported in accordance with GAAP. There
    are limitations to using non-GAAP financial measures, including
    that other companies may calculate these measures differently
    than we do, that they do not reflect our capital expenditures or
    future requirements for capital expenditures and that they do
    not reflect changes in, or cash requirements for, our working
    capital. We compensate for the inherent limitations associated
    with using the Adjusted EBITDA measures through disclosure of
    these limitations, presentation of our financial statements in
    accordance with GAAP and reconciliation of Adjusted EBITDA to
    the most directly comparable GAAP measure, net (loss) income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a reconciliation of net (loss)
    income to Adjusted EBITDA for the eight fiscal quarters ended
    December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (869
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (685
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (204
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    910
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Depreciation and asset impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,835
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,244
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,043
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Amortization of intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,362
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,279
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,821
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    418
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    493
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,246
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    355
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    613
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    901
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Acquisition-related expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,232
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,151
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,737
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    66
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have financed our operations primarily through private
    placements of preferred equity securities and common stock,
    secured credit facilities with commercial lenders, a private
    placement of subordinated debt securities and cash provided by
    operating activities. Our primary sources of liquidity as of
    December&#160;31, 2009 consisted of $4.4&#160;million of cash
    and cash equivalents, $10&#160;million available under our
    revolving line of credit and $12.9&#160;million of working
    capital (excluding deferred revenue).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our principal uses of liquidity have been to fund our
    operations, working capital requirements, capital expenditures
    and acquisitions and to service our debt obligations. We expect
    that working capital requirements, capital expenditures and
    acquisitions will continue to be our principal needs for
    liquidity over the near term. Our planned capital expenditures
    for 2010 are not expected to exceed $12.0 million. In addition,
    we have made several acquisitions in which a portion of the cash
    purchase price is payable at various times through 2014. We
    expect to fund these obligations from cash provided by operating
    activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our existing cash and cash equivalents, working
    capital (excluding deferred revenue) and our cash flow from
    operations, together with the proceeds of this offering, will be
    sufficient to fund our operations and planned capital
    expenditures and service our debt obligations for at least the
    next 12&#160;months. Our future capital requirements will depend
    on many factors, including our rate of revenue growth, the
    timing and size of acquisitions, the expansion of our sales and
    marketing activities, the timing and extent of spending to
    support product development efforts, the timing of introductions
    of new solutions and enhancements to existing solutions and the
    continuing market acceptance of our solutions. We may enter into
    acquisitions of, complementary businesses, applications or
    technologies, in the future, which could require us to seek
    additional equity or debt financing. Additional funds may not be
    available on terms favorable to us, or at all.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth cash flow data for the periods
    indicated therein:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash provided by operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,155
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (32,320
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,676
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Net
    Cash Provided by Operating Activities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009, we generated $24.8&#160;million of net cash from
    operating activities, which consisted of our net income of
    $28.4&#160;million, offset by net non-cash income of
    $8.5&#160;million, representing an increase of
    $16.8&#160;million, or 211.0%, as compared to 2008. Net non-cash
    charges primarily consisted of a non-cash deferred tax benefit
    offset by depreciation, amortization and stock-based
    compensation expense. The increase in our net cash from
    operating activities in 2009 was primarily due to our net
    income, cash inflows from changes in working capital and greater
    collection of accounts receivable, which resulted in an
    improvement in the number of days that sales were outstanding
    from 68&#160;days in 2008 to 57&#160;days in 2009. This decrease
    in accounts receivable occurred despite an increase in revenues
    during the fourth quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, we generated $8.0&#160;million of net cash from
    operating activities, which consisted of our net loss of
    $3.2&#160;million, offset by net non-cash charges of
    $13.9&#160;million, representing an increase of
    $3.5&#160;million, or 79.3%, as compared to 2007. Net non-cash
    charges to income primarily consisted of depreciation,
    amortization and stock-based compensation expense. The increase
    in our net cash from operating activities in 2008 was primarily
    due to cash outflows from changes in working capital including
    an increase in accounts receivable of $7.6&#160;million from
    increased sales during the fourth quarter, partially offset by
    an increase in deferred revenues of $5.6&#160;million. The
    increase in our net cash from operating activities in 2008 was
    primarily due to a reduction in our net loss, an increase of
    $6.3&#160;million in non-cash charges and an increase in
    deferred revenue from increased sales during the fourth quarter,
    partially offset by increases in accounts receivable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, we generated $4.4&#160;million of net cash from
    operating activities, which consisted of our net loss of
    $3.1&#160;million, offset by net non-cash charges of
    $7.6&#160;million. Net non-cash charges to income primarily
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    67
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    consisted of depreciation, amortization and stock-based
    compensation expense. Additionally, cash outflows from changes
    in working capital included an increase in accounts receivable
    of $5.2&#160;million from increased sales near the end of the
    year, partially offset by an increase in deferred revenues of
    $4.4&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Net
    Cash Used in Investing Activities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009, our investing activities used $24.7&#160;million.
    Investing activities consisted of acquisition consideration of
    $11.6&#160;million net of cash acquired for our 2009
    acquisitions, acquisition-related payments of $3.6&#160;million
    for commitments related to prior years&#146; acquisitions and
    $9.5&#160;million of capital expenditures. The decrease in cash
    used in investing activities from 2008 relates to a decrease in
    capital spending of $0.8&#160;million combined with a decrease
    in acquisition-related payments of $6.9&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, our investing activities used $32.3&#160;million.
    Investing activities consisted of $20.1&#160;million for our
    2008 acquisitions, acquisition-related payments of
    $1.9&#160;million for commitments related to prior years&#146;
    acquisitions and capital expenditures of $10.3&#160;million. The
    increase in cash used in investing activities from 2007 relates
    to an increase in capital spending of $3.1&#160;million and in
    increase in acquisition-related payments of $13.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, our investing activities used $16.2&#160;million.
    Investing activities consisted of $7.0&#160;million for our 2007
    acquisition, acquisition-related payments of $2.1&#160;million
    for commitments related to prior years&#146; acquisitions and
    capital expenditures of $7.1&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capital expenditures in 2009, 2008 and 2007 were primarily
    related to investments in technology infrastructure to support
    our growth initiatives.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Net
    Cash Provided by Financing Activities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our financing activities provided $0.1&#160;million in 2009,
    representing a decrease of $25.8&#160;million, or 99.6%, as
    compared to 2008. Cash provided by financing activities in 2009
    was primarily related to net proceeds from refinancing our
    credit facility, offset by payments for scheduled term debt
    maturities, capital lease obligations and preferred stockholder
    notes payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our financing activities provided $25.9&#160;million in 2008,
    representing an increase of $13.9&#160;million, or 116.5%, as
    compared to 2007. On February&#160;22, 2008, in order to secure
    capital for future growth and business development activities,
    we entered into a securities purchase agreement whereby
    investors purchased an aggregate of 3,025,000&#160;shares of
    Series&#160;C convertible preferred stock at a purchase price of
    $4.50 per share resulting in $13.4&#160;million of net proceeds.
    Additionally, we had net proceeds of $4.5&#160;million from our
    credit facility, $10.0&#160;million of proceeds from a private
    placement of a note purchase agreement and common stock
    issuances of $0.6&#160;million resulting from employees&#146;
    and third parties&#146; exercise of stock options and warrants.
    These proceeds were offset by $2.6&#160;million of scheduled
    payments of capital lease obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our financing activities provided $12.0&#160;million in 2007.
    Cash provided by financing activities in 2007 was primarily
    related to net proceeds of $11.5&#160;million from our credit
    facility and common stock issuances of $1.1&#160;million
    resulting from employees&#146; and third parties&#146; exercise
    of stock options and warrants. These proceeds were offset by
    $0.7&#160;million of scheduled payments of capital lease
    obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cash provided by financing activities during 2009, 2008 and 2007
    was used to support our operations until we achieved positive
    operating cash flow, as a funding source for acquisitions and
    for capital expenditures related to the expansion of our
    technology infrastructure.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Contractual
    Obligations, Commitments and Contingencies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After giving effect to the February 2010 amendment to our credit
    facility, the following table summarizes, as of
    December&#160;31, 2009, our minimum payments for long-term debt
    and other obligations for the next five years and thereafter:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Payments Due by Period</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Less Than<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>More Than<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1&#160;year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1-3&#160;years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>3-5&#160;years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>5&#160;years</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt
    obligations<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital (finance) leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    603
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,197
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,591
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition-related
    liabilities<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,359
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,842
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,338
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,085
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The amount of long-term debt obligations shown in the table
    above does not include any interest payments.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    We have made several acquisitions in which a portion of the cash
    purchase price is payable at various times through 2014.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Debt Obligations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we entered into a credit facility which
    provided for a $35.0&#160;million term loan and a
    $10.0&#160;million revolving line of credit. A portion of the
    proceeds from the credit facility was used to repay the balance
    outstanding under our prior credit facility. The term loan and
    revolving line of credit bear interest at rates of the greater
    of 7.5%, a stated rate of 5.0% plus LIBOR, or a stated rate of
    5.0% plus the bank&#146;s prime rate (or, if greater than 3.5%,
    the federal funds rate plus 0.5% or three month LIBOR plus
    1.0%). The term loan and revolving line of credit are
    collateralized by all our personal property and were subject to
    financial covenants, including meeting certain financial
    measures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, we entered into an amendment to the credit
    facility. Under terms of the amendment, the original term loan
    was increased by an additional $10.0&#160;million. This
    amendment increased the balance outstanding on the term loan to
    $43.7&#160;million. The proceeds from the amendment were
    primarily used to finance the February 2010 acquisition of
    certain assets of Domin-8 Enterprise Solutions, Inc. The related
    interest rates and maturity periods remained consistent with the
    terms of the credit facility. Principal payments on the term
    loan are due in quarterly installments of approximately $1.8
    million until September 30, 2010, increasing to approximately
    $2.3 million until September 30, 2011, increasing to
    approximately $2.4 million until September 30, 2012 and
    increasing to quarterly installments of approximately $2.5
    million through March 31, 2013, with the balance due on June 30,
    2013. The effects of the payments related to this amendment have
    been included in the table above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2008, we entered into a note purchase agreement with a
    separate lender. Under the terms of the agreement, we issued
    secured promissory notes in the aggregate principal amount of
    $10.0&#160;million with an interest rate of 13.75%, payable
    quarterly. These notes are to be paid in full before
    August&#160;1, 2013. These notes are collateralized by all our
    personal property and are subordinated to the Credit Agreement.
    The balance of these notes at December&#160;31, 2009 was
    $10.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December 30, 2008, in connection with a declaration of
    dividend for all holders of our preferred stock, we issued
    promissory notes to the holders of our preferred stock in an
    aggregate principal amount of $11.1&#160;million. The promissory
    notes bear interest at a rate of 8% and are payable in 16
    consecutive quarterly payments of principal and interest. An
    additional amount equal to $0.9&#160;million became payable in
    September 2009 under the terms of these promissory notes and
    will be paid upon maturity. The payments may be deferred at the
    discretion of the board of directors. The balance of these notes
    at December&#160;31, 2009 was $8.2&#160;million.
</DIV>
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    <BR>
    69
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Off-Balance
    Sheet Arrangements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not have any off-balance sheet financing arrangements and
    we do not have any relationships with unconsolidated entities or
    financial partnerships, such as entities often referred to as
    structured finance or special purpose entities, which have been
    established for the purpose of facilitating off-balance sheet
    arrangements or other contractually narrow or limited purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Accounting Pronouncements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Accounting
    Standards Codification</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we adopted the Accounting Standards
    Codification, or ASC, established by the Financial Accounting
    Standards Board, or FASB. The FASB established the ASC as the
    single source of authoritative non-governmental GAAP,
    superseding various existing authoritative accounting
    pronouncements. It eliminates the previous GAAP hierarchy and
    establishes one level of authoritative GAAP. All other
    literature is considered non-authoritative. The FASB will not
    issue new standards in the form of Statements, FASB Staff
    Positions or Emerging Issues Task Force Abstracts. Instead, it
    will issue an Accounting Standards Update, or ASU. The FASB will
    not consider ASUs as authoritative in their own right. ASUs will
    serve only to update the ASC, provide background information
    about the guidance and provide the bases for conclusions on the
    change(s) in the ASC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Business
    Combinations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued guidance regarding business
    combinations, which significantly changes the principles and
    requirements for how the acquirer of a business recognizes and
    measures in its financial statements the identifiable assets
    acquired, the liabilities assumed, any non-controlling interest
    in the acquiree, and the goodwill acquired. This statement is
    effective prospectively, except for certain retrospective
    adjustments to deferred tax balances, for fiscal years beginning
    after December&#160;15, 2008. We applied these provisions to our
    2009 acquisitions which resulted in expensing related
    transaction costs and valuing contingent consideration at the
    date of acquisition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fair
    Value Measurements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, the FASB issued an ASU providing
    clarification for measuring the fair value of a liability when a
    quoted price in an active market for the identical liability is
    not available. It also clarifies that when estimating the fair
    value of a liability, a reporting entity is not required to
    include a separate input or adjustment to other inputs relating
    to the existence of a restriction that prevents the transfer of
    the liability. This ASU is effective for fiscal periods
    beginning after August&#160;27, 2009. The Company does not
    believe this update will have a material impact on its
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2009, the FASB issued an ASU that established general
    standards of accounting for and disclosure of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. Although there is new
    terminology, the standard is based on the same principles as
    those that currently exist in the auditing standards. The
    standard, which requires Companies to evaluate the disclosure of
    subsequent events, is effective for interim or annual periods
    ending after June&#160;15, 2009. The adoption of this update had
    no impact on our consolidated results of operations or financial
    position.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Multiple
    Element Arrangements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2009, the FASB issued an ASU that amended the
    accounting rules addressing revenue recognition for
    multiple-deliverable revenue arrangements by eliminating the
    existing criteria that objective and reliable evidence of fair
    value for undelivered products or services exist in order to be
    able to separately account for deliverables. Additionally, the
    ASU provides for elimination of the use of the residual method
    of allocating arrangement consideration and requires that
    arrangement consideration be allocated at the inception
</DIV>
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    <BR>
    70
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of the arrangement to all deliverables that can be accounted for
    separately based on their relative selling price. A hierarchy
    for estimating such selling price is included in the update.
    This ASU will be effective prospectively for revenue
    arrangements entered into or materially modified in fiscal years
    beginning on or after June&#160;15, 2010. Early adoption is
    permitted. The Company adopted these accounting standards for
    all periods herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2009, the FASB issued an ASU that changes the
    criteria for determining when an entity should account for
    transactions with customers using the revenue recognition
    guidance applicable to the selling or licensing of software.
    This ASU is effective prospectively for revenue arrangements
    entered into or materially modified in fiscal years beginning on
    or after June&#160;15, 2010. Early adoption is permitted. The
    Company does not believe this update will have a material impact
    on its consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quantitative
    and Qualitative Disclosures about Market Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Market risk represents the risk of loss that may impact our
    financial position due to adverse changes in financial market
    prices and rates. Our market risk exposure is primarily a result
    of fluctuations in interest rates. We do not hold or issue
    financial instruments for trading purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had cash and cash equivalents of $2.7&#160;million,
    $4.2&#160;million and $4.4&#160;million at December&#160;31,
    2007, 2008 and 2009, respectively. We held these amounts
    primarily in cash or money market funds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We hold cash and cash equivalents for working capital purposes.
    We do not have material exposure to market risk with respect to
    investments, as our investments consist primarily of highly
    liquid investments purchased with original maturities of three
    months or less. We do not use derivative financial instruments
    for speculative or trading purposes; however, we may adopt
    specific hedging strategies in the future. Any declines in
    interest rates, however, will reduce future interest income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had total outstanding debt of $18.2&#160;million,
    $43.7&#160;million and $51.9&#160;million at December&#160;31,
    2007, 2008 and 2009, respectively. The interest rate on this
    debt is variable and adjusts periodically based on the
    three-month LIBOR rate. If the LIBOR rate changes by 1%, our
    annual interest expense would change by approximately
    $0.6&#160;million.
</DIV>
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    <BR>
    71
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Company
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a leading provider of on demand software solutions for
    the rental housing industry. Our broad range of property
    management solutions enables owners and managers of
    single-family and a wide variety of multi-family rental property
    types to manage their marketing, pricing, screening, leasing,
    accounting, purchasing and other property operations. Our on
    demand software solutions are delivered through an integrated
    software platform that provides a single point of access and a
    shared repository of prospect, resident and property data. By
    integrating and streamlining a wide range of complex processes
    and interactions among the rental housing ecosystem of owners,
    managers, prospects, residents and service providers, our
    platform optimizes the property management process and improves
    the experience for all of these constituents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our solutions enable property owners and managers to increase
    revenues and reduce operating costs through higher occupancy,
    improved pricing methodologies, new sources of revenue from
    ancillary services, improved collections and more integrated and
    centralized processes. As of December&#160;31, 2009, over
    5,000&#160;customers used one or more of our on demand software
    solutions to help manage the operations of approximately
    4.6&#160;million rental housing units. Our customers include
    nine of the ten largest multi-family property management
    companies in the United States, ranked as of January&#160;1,
    2009, based on number of units managed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell our solutions through our direct sales organization. Our
    total revenues were approximately $83.6&#160;million,
    $112.6&#160;million and $140.9&#160;million in 2007, 2008 and
    2009, respectively. In the same years, we had operating (loss)
    income of approximately ($1.6&#160;million), ($0.4&#160;million)
    and $6.9&#160;million, respectively, and net (loss) income of
    approximately ($3.1&#160;million), ($3.2&#160;million) and
    $28.4&#160;million, respectively. Net income for 2009 included a
    discrete tax benefit of approximately $26.0&#160;million as a
    result of a reduction of our net deferred tax assets valuation
    allowance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    rental housing market is large, growing and
    complex.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rental housing market is large and characterized by
    challenging and location-specific operating requirements,
    diverse industry participants, significant mobility among
    residents and a variety of property types, including
    <FONT style="white-space: nowrap">single-family</FONT>
    and a wide range of
    <FONT style="white-space: nowrap">multi-family</FONT>
    property types, including conventional, affordable, privatized
    military, student and senior housing. According to the
    U.S.&#160;Census Bureau American Housing Survey for the United
    States: 2007, there were 39.3&#160;million rental housing units
    in the United States in 2007. The U.S.&#160;Census Bureau
    divides the rental housing market into the following categories:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Property Size</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Estimated Units</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in millions)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>Single-family properties</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    1&#160;unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2-4&#160;units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>Multi-family properties</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    5-9&#160;units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    10-49&#160;units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    50 or more units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total Rental Units</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on U.S.&#160;Census Bureau data and our own estimates, we
    believe that the overall size of the U.S.&#160;rental housing
    market, including rent, utilities and insurance, exceeds
    $300&#160;billion annually. We estimate that the total
    addressable market for our current on demand software solutions
    is approximately $5.5&#160;billion per year. This estimate
    assumes that each of the 39.3&#160;million rental units in the
    United States has the potential to generate annually a range of
    approximately $100 in revenue per unit for single-family units
    to approximately $240 in revenue per unit for conventional
    multi-family units. We base this potential revenue
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    72
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    assumption on our review of the purchasing patterns of our
    existing customers with respect to our on demand software
    solutions, the on demand software solutions currently utilized
    by our existing customers, the number of units our customers
    manage with these solutions and our current pricing for on
    demand software solutions. Furthermore, the U.S.&#160;rental
    housing market has recently benefited from a number of
    significant trends, including decreased home ownership resulting
    in additional renter households and tougher mortgage lending
    standards reducing first-time home purchases and contributing to
    lower rates of renter attrition as renters choose to remain in
    rental units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Rental
    property management spans both the resident lifecycle and the
    operations of a property.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The resident lifecycle can be separated into four key stages:
    prospect, applicant, residency and post-residency. Each stage
    has unique requirements, and a property owner&#146;s or
    manager&#146;s ability to effectively address these requirements
    can significantly impact revenue and profitability.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="25%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="73%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Resident Lifecycle Stage</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Property Owner/Manager Objectives</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Prospect
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;increase number of leads through effective marketing
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;optimize the advertising spending and marketing
    budget for each property
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;capture every lead in a timely manner
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;create a compelling online experience for each
    property
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;identify quality prospects
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;determine appropriate market rental rates
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;increase prospect-to-resident conversion rates
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Applicant
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;automate application process
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;assess applicant credit history and ability to pay
    rent
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;assess applicant criminal background
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;determine optimal rental rates and lease terms
    required to maximize revenue
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;manage risk through renter&#146;s insurance
    programs<BR>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Residency
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;foster resident retention through effective
    communications and responsive service
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;manage rental payments and collections
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;maintain property, including improvements and
    routine maintenance
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;manage service provider network, including utilities
    and telecommunications vendors
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;renew as high a percentage of lease expirations as
    possible
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;determine optimal renewal rental rates required to
    maximize revenue
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Post-residency
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;improve collection of move-out expenses, including
    uncovered repairs and unpaid utilities
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;manage process to efficiently and cost-effectively
    prepare the unit for new residents
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;process final account statements and security
    deposit refunds
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to managing the resident lifecycle, property owners
    and managers must also manage the operations of their
    properties. Critical components of property operations include
    materials and service provider procurement, insurance and risk
    mitigation, utility and energy management, information
    technology and telecommunications management, accounting,
    expense tracking and management, document management, security,
    staff hiring and training, staff performance measurement and
    management and marketing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Managing the resident lifecycle and the operations of a property
    involves several different constituents, including property
    owners and managers, prospects, residents and service providers.
    Property owners can include
    <FONT style="white-space: nowrap">single-property</FONT>
    owners, multi-property owners, national residential apartment
    syndicators that may own thousands of units through a variety of
    investment funds and real estate investment trusts, or REITs.
    Property managers often are responsible for a large number of
    properties that can range from single-family units to large
    apartment communities. Property owners and managers also need to
    manage a variety of service providers, including utilities,
    insurance providers, video, voice and data providers and
    maintenance and capital goods suppliers. Managing these diverse
    relationships, combined with frequent resident turnover and
    regulatory and compliance requirements, can make the operations
    of even a small portfolio of rental properties complex.
</DIV>
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    <BR>
    73
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Challenges are compounded for owners and managers responsible
    for a large portfolio of geographically dispersed properties,
    which require overseeing potentially hundreds of thousands of
    individual rental processes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD>

</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Legacy
    information technology solutions designed to manage the rental
    housing property management process are
    inadequate.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the 1970&#146;s and 1980&#146;s, the rental housing
    market was highly fragmented and regionally organized. During
    this period, the first property management systems and software
    solutions emerged to help property owners and managers with
    basic accounting and record keeping functions. These solutions
    provided limited functionality and scalability and often were
    not tailored to the specific needs of rental housing property
    owners and managers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beginning in the mid 1990&#146;s, the rental housing market
    began to consolidate and large, nationally focused and publicly
    financed companies emerged, which aggregated significant numbers
    of units. The rise of national real estate portfolio managers,
    many of them accountable to public shareholders, created a need
    for more sophisticated and scalable property management systems
    that included a centralized database and were designed to
    optimize and automate multiple business processes within the
    resident lifecycle and property operations. Despite increasing
    market demands, the available solutions continued to be
    insufficient to fully address the complex requirements of rental
    housing property owners and managers, which moved beyond basic
    accounting and record keeping functions to also include
    value-added services such as Internet marketing, applicant
    screening, billing solutions and analytics for pricing and yield
    optimization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To address their complex and evolving requirements, many rental
    housing property owners and managers have historically
    implemented a myriad of single point solutions
    <FONT style="white-space: nowrap">and/or</FONT>
    internally developed solutions to manage their properties. These
    solutions can be expensive to implement and maintain and often
    lack integrated functionality to help owners and managers
    increase rental revenue or reduce costs. In addition, many
    rental housing property owners and managers still rely on paper
    or spreadsheet-based approaches, which are typically time
    intensive and prone to human error or internal mismanagement. We
    believe these historical solutions are inadequate because they:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require significant customization to implement, which frequently
    inhibits upgrading to new versions or platforms in a timely
    manner;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require information technology, or IT, resources to support
    integration points between property management systems and
    disparate value-added services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require IT resources to implement and maintain data security,
    data integrity, performance and business continuity solutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lack scalability and flexibility to account for the expansion or
    contraction of a property portfolio;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lack robust marketing and tracking capabilities for converting
    prospects to residents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lack effective spend management capabilities for controlling
    property management costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lack comprehensive analytics for pricing and yield optimization;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lack workflow level integration;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    do not provide owners and managers with visibility into overall
    property performance;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cannot be easily updated to meet new regulations and compliance
    requirements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">On
    demand software solutions are well suited to meet the rental
    housing market&#146;s needs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The ubiquitous nature of the Internet, widespread broadband
    adoption and improved network reliability and security have
    enabled the deployment and delivery of business-critical
    applications over the Internet. The on demand delivery model is
    substantially more cost-effective than traditional on premise
    software solutions that generally have higher deployment and
    support costs and require the customer to purchase and maintain
    the associated servers, storage, networks, security and disaster
    recovery solutions.
</DIV>
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    <BR>
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    <B><FONT style="font-family: 'Times New Roman', Times">The
    RealPage Solution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We provide a platform of on demand software solutions that
    integrates and streamlines rental property management business
    functions. Our solutions enable owners and managers of
    single-family and a wide variety of multi-family rental property
    types, including conventional, affordable, privatized military,
    student and senior housing, to manage their marketing, pricing,
    screening, leasing, accounting, purchasing and other property
    operations. These functions have traditionally been addressed by
    individual, disparate applications. Our solutions enable
    property owners and managers to increase revenues and reduce
    operating costs through higher occupancy, improved pricing
    methodologies, new sources of revenue from ancillary services,
    improved collections and more integrated and centralized
    business processes. Our solutions contribute to a more efficient
    property management process and an improved experience for all
    of the constituents involved in the rental housing ecosystem,
    including owners, managers, prospects, residents and service
    providers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Benefits
    to Our Customers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The benefits of our solutions for our customers include the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Increased revenues.</I>&#160;&#160;Our solutions enable our
    customers to increase their revenues by improving their sales
    and marketing effectiveness, optimizing their pricing and
    occupancy and improving collection of rental payments, utility
    expenses, late fees and other charges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Reduced operating costs.</I>&#160;&#160;Our solutions help
    our customers reduce costs by streamlining and automating many
    ongoing property management functions, centralizing and
    controlling purchasing by
    <FONT style="white-space: nowrap">on-site</FONT>
    personnel and transferring costs from the site to more efficient
    centrally managed operations. Our on demand delivery model also
    reduces owners&#146; and managers&#146; operating costs by
    eliminating their need to own and support the applications or
    associated hardware infrastructure. In addition, our integrated
    solutions reduce the initial implementation and training costs
    and ongoing support associated with multiple applications that
    each provide only components of the functionality provided by
    our solutions. This is particularly important for property
    owners and managers who want to reduce enterprise-class&#160;IT
    infrastructure, support and staff training.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Improved quality of service for residents and
    prospects.</I>&#160;&#160;Our solutions improve the level of
    service that property owners and managers provide to residents
    and prospects by enabling many transactions to be completed
    online, expediting the processing of rental applications,
    maintenance service requests and payments and increasing the
    frequency and quality of communication with residents and
    prospects, providing higher resident satisfaction and increased
    differentiation from competing properties that do not use our
    solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Streamlined and simplified property management business
    processes.</I>&#160;&#160;Our on demand platform provides
    integrated solutions for managing a wide variety of property
    management processes that have traditionally been managed
    manually or through separate applications. Our solutions utilize
    common authentication that enables data sharing and workflow
    automation of certain business processes, thereby eliminating
    redundant data entry and simplifying many recurring tasks. The
    efficiency of our solutions allows onsite and corporate
    personnel to utilize their time more effectively and to focus on
    the strategic priorities of the business. We also make extensive
    use of online training courseware and our solutions are designed
    to be usable by new employees almost immediately after their
    hiring, addressing an acute need of the multi-family industry in
    which employee turnover is high.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Ability to integrate third-party products and
    services.</I>&#160;&#160;Our open architecture and application
    framework facilitate the integration of third-party applications
    and services into our solutions. This enables property managers
    to conduct these business functions through the same system that
    they already use for many of their other tasks and to leverage
    the same repository of prospect, resident and property data that
    supports our solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Increased visibility into property
    performance.</I>&#160;&#160;Our integrated platform and common
    data repository enable owners and managers to gain a
    comprehensive view of the operational and financial performance
    of each of their properties. Our solutions provide a library of
    standard reports, dashboards, scorecards and alerts, and we also
    provide interfaces to several widely used report writers and
    business intelligence tools. In addition, our on demand delivery
    model makes it possible to deliver benchmark data aggregated
    across more than 10,000 properties, factor rental payment
    history into applicant screening processes and create more
    accurate supply/demand models and statistically based price
    elasticity models to improve price optimization.
</DIV>
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    <BR>
    75
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Simple implementation and support.</I>&#160;&#160;Our
    solutions include pre-configured extensions that meet the
    specific needs of a variety of property types and can be easily
    tailored by our customers to meet more specific requirements of
    their properties and business processes. We strive to minimize
    the need for professional consulting services to implement our
    solutions and train personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Improved scalability.</I>&#160;&#160;We host our solutions
    for our customers, thereby reducing or eliminating our
    customers&#146; costs associated with expanding or contracting
    IT infrastructure as their property portfolios evolve. We also
    bear the risk of technological obsolescence because we own and
    manage our data center infrastructure and are continually
    upgrading it to newer generations of technology without any
    incremental cost to our customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Competitive
    Strengths of our Solutions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The competitive strengths of our solutions are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Integrated on demand software platform based on a common data
    repository.</I>&#160;&#160;Our solutions are delivered through
    an integrated on demand software platform that provides a single
    point of access via the Internet with a common repository of
    prospect, resident and property data, which permits our
    solutions to access requested data through offline data transfer
    or in real-time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Large and growing ecosystem of property owners, managers,
    prospects, residents and service
    providers.</I>&#160;&#160;Through December&#160;31, 2009, we
    have established a customer base of over 5,000 customers who use
    one or more of our on demand software solutions to help manage
    the operations of approximately 4.6&#160;million rental housing
    units. Our customers include nine of the ten largest
    multi-family property management companies in the United States,
    ranked as of January&#160;1, 2009, based on number of units
    managed. Our solutions automate and streamline many of the
    recurring transactions and interactions among this large and
    expanding ecosystem of property owners and managers, prospects,
    residents and service providers, including prospect inquiries,
    applications, monthly rent payments and service requests. As the
    number of constituents of our ecosystem increases, the volume of
    data in our common data repository and its value to the
    constituents of our ecosystem grows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Comprehensive platform of on demand software solutions for
    property management.</I>&#160;&#160;Our on demand property
    management systems and integrated software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services provide what we believe to be the broadest range of on
    demand capabilities for managing the resident lifecycle and core
    operational processes for residential property management. Our
    software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services provide complementary sales and marketing, asset
    optimization, risk mitigation, billing and utility management
    and spend management capabilities that collectively enable our
    customers to manage every stage of the resident lifecycle. In
    addition, we offer shared cloud services, including reporting,
    payment, document management and training functionality that are
    common to all of our product families. These comprehensive
    solutions enable us to address the needs of a wide range of
    property owners and managers across a broad range of rental
    housing property types.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Deep rental housing industry expertise.</I>&#160;&#160;We
    have been serving the rental housing industry exclusively for
    over 10&#160;years and our 20&#160;most senior management team
    members have an average of 16&#160;years experience in the
    rental housing industry. We design our solutions based on our
    extensive rental housing industry expertise, insight into
    industry trends and developments and property management best
    practices that help our customers simplify the challenges of
    owning and managing rental properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Open cloud computing architecture.</I>&#160;&#160;Our cloud
    computing architecture enables our solutions to interface with
    our customers&#146; existing systems and allows our customers to
    outsource the management of third-party business applications.
    This open architecture enables our customers to buy our
    solutions incrementally while continuing to use existing
    third-party solutions, allowing us to shorten sales cycles and
    increase adoption of our solutions within our target market.
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to leverage the breadth of our solutions and industry
    presence to solidify our position as a leading provider of on
    demand software solutions to the rental housing industry. The
    key elements of our strategy to accomplish this objective are as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Acquire new customers.</I>&#160;&#160;We intend to actively
    pursue new customer relationships with property owners and
    managers that do not currently use our solutions. In addition to
    marketing our core property management systems, we will also
    seek to sell our software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services to customers of other third-party property management
    systems by utilizing our open architecture to facilitate
    integration of our solutions with those systems.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Increase the adoption of additional solutions within our
    existing customer base.</I>&#160;&#160;Many of our customers
    rely on our property management systems to manage their daily
    operations and track all of their critical prospect, resident
    and property information. Additionally, some of our customers
    utilize our software-enabled value-added services to complement
    third-party ERP systems. We have continually introduced new
    software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services to complement our property management systems and
    marketed our on demand property management systems to our
    customers who are utilizing third-party ERP systems. We believe
    that the penetration of our on demand software solutions to date
    has been modest and that there exists significant potential for
    additional on demand revenue from sales of our on demand
    software solutions to our customer base. We have significant
    opportunities to further leverage the critical role that our
    solutions play in our customers&#146; operations by increasing
    the adoption of our on demand property management systems and
    software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services within our existing customer base, and we intend to
    actively focus on upselling and cross-selling our solutions to
    our customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Add new solutions to our platform.</I>&#160;&#160;We believe
    that we offer the most comprehensive platform of on demand
    software solutions for the rental housing industry. The breadth
    of our platform enables our customers to control many aspects of
    the residential rental property management process. We have a
    unique opportunity to add new capabilities that further enhance
    our platform, and we intend to continue developing and
    introducing new solutions to sell to both new and existing
    customers. These solutions may include localized solutions to
    support our customers as they grow their international
    operations. We also intend to develop new relationships with
    third-party application providers that can use our open
    architecture to offer additional product and service
    capabilities to their customers through the use of our platform.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Pursue acquisitions of complementary businesses, products and
    technologies.</I>&#160;&#160;Since March 2005, we have completed
    nine acquisitions that have enabled us to expand our platform,
    enter into new rental property markets and expand our customer
    base. We intend to continue to selectively evaluate
    opportunities to acquire businesses and technologies that may
    help us accomplish these and other strategic objectives.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Products
    and Services</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our platform consists of our property management systems and
    five families of software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services. Our software-enabled value-added services provide
    complementary sales and marketing, asset optimization, risk
    mitigation, billing and utility management and spend management
    capabilities that collectively enable our customers to manage
    the stages of the resident lifecycle. Each of our property
    management systems and our software-enabled value-added services
    include multiple product centers that provide distinct
    capabilities and can be licensed separately or as a bundled
    package. Each product center is integrated with a central
    repository of prospect, resident and property data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our platform also includes a set of shared cloud services,
    including reporting, payment, document management and training
    functionality that are common to all of our product families.
    Third-party applications can access our property management
    systems using either Online Data Exchanges or Site Data
    Exchanges, which we refer to as AppConnectors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our platform is designed to serve as a single system of record
    for all of the constituents of the rental housing ecosystem,
    including owners, managers, prospects, residents and service
    providers, and to support the entire resident lifecycle, from
    prospect to applicant to residency to post-residency. Common
    authentication, work flow and user experience across product
    families enables each of these constituents to access different
    applications as appropriate for their role.
</DIV>
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    <BR>
    77
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer different versions of our platform for different types
    of properties. For example, our platform supports the specific
    and distinct requirements of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conventional single-family properties (four units or less);
</TD>
</TR>




<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conventional multi-family properties (five or more units);
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    affordable Housing and Urban Development, or HUD, properties;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    affordable tax credit properties;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    privatized military housing;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    student housing; and
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    senior living.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="d71244d7124425.gif" alt="">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Property
    Management Systems</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our property management systems are typically referred to as
    Enterprise Resource Planning, or ERP, systems. These solutions
    manage core property management business processes, including
    leasing, accounting, purchasing and facilities management, and
    include a central database of prospect, applicant, resident and
    property information that is accessible in real time by our
    other solutions. Our property management systems also interface
    with most popular general ledger accounting systems through
    AppConnectors to products offered by AMSI Property Management
    (owned by Infor Global Solutions, Inc.), Microsoft Corporation,
    MRI Software, LLC, Yardi Systems, Inc. and many others. This
    makes it possible for customers to deploy our solutions using
    our accounting system or a third-party accounting system.
</DIV>
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    <BR>
    78
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">OneSite</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OneSite is our flagship on demand property management system for
    multi-family properties. OneSite includes eleven individual
    product centers. Seven versions of OneSite are tailored to the
    specific needs of conventional single-family, conventional
    multi-family, affordable HUD, affordable tax credit, privatized
    military housing, student housing and senior living properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Product Center</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OneSite Leasing&#160;&#038; Rents</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Prospects, generates, presents and records price quotations,
    generates lease documents, schedules move-ins and posts
    financial transactions to the resident ledger for both new
    residents and renewal of existing resident leases.  Seven
    versions support the unique needs of our target residential
    rental markets.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OneSite Facilities</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Manages asset warranties, service requests and unit turnovers so
    that when a resident moves out, the resident ledger is
    automatically updated with any damages to be incorporated into
    the resident&#146;s final account statement.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OneSite Purchasing</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Manages work orders and procurement activities and calculates
    operating budget variances.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OneSite Accounting</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Provides back-office general ledger, accounts payable and cash
    management functions.  We license OneSite Accounting from a
    third-party accounting software provider and have modified it to
    meet the needs of the rental housing industry.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OneSite Budgeting</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Enables owners and managers to budget property performance and
    transfer budgets into the general ledger.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Propertyware</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Propertyware is our on demand property management system for
    single-family properties and small, centrally managed
    multi-family properties. Propertyware consists of four product
    centers including accounting, maintenance and work order
    management, marketing spend management and portal services. In
    addition, we offer our screening and payment solutions through
    our Propertyware brand to single-family and small centrally
    managed multi-family properties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Other
    Property Management Systems</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also offer six additional on premise property management
    systems&#160;&#151; RentRoll, HUDManager, Tenant Pro, Spectra,
    i-CAM, and Management Plus. RentRoll serves small conventional
    apartment communities. HUDManager serves small HUD, Rural
    Housing Services and tax credit subsidized apartment
    communities. Tenant Pro serves the needs of small conventional
    properties. Spectra is a conventional apartment and commercial
    modular property management system that primarily serves both
    the U.S. and the Canadian markets. i-CAM and Management Plus
    property management software automates and streamlines rental
    activities for affordable housing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our RentRoll and HUDManager on premise customers have
    migrated to our on demand property management systems. Four of
    our additional on premise property management
    systems&#160;&#151; Tenant Pro, Spectra,
    <FONT style="white-space: nowrap">i-CAM</FONT> and
    Management Plus&#160;&#151; were acquired in February 2010. Over
    time, we expect many customers of these on premise property
    management systems to migrate to our on demand OneSite or
    Propertyware systems; however, we will continue to support our
    on premise property management systems for the foreseeable
    future and integrate our software-enabled value-added services
    into them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Collectively, our on premise property management systems
    represented less than 2.7% of our total revenue in 2009 and we
    expect that our on premise property management systems,
    including the revenue
</DIV>
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    <BR>
    79
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    attributable to the on premise property management systems that
    we acquired in February 2010, will represent less than 5% of our
    total revenue in 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Software-Enabled
    Value-Added Services</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to property management systems, we offer
    software-enabled value-added services consisting of five product
    families and 22 product centers that provide complementary sales
    and marketing, asset optimization, risk mitigation, billing and
    utility management and spend management capabilities. Our
    software-enabled value-added services are tightly integrated
    with our OneSite property management system, and we are actively
    integrating them with our other property management systems.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">CrossFire
    (Sales&#160;&#038; Marketing Systems)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CrossFire product family is usually referred to as a
    customer relationship management, or CRM, system. It includes
    product centers that manage marketing and leasing operations and
    enable owners and managers to originate, capture, track, manage
    and close more leads.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Product Center</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>CrossFire Content Management System</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides a central repository of property marketing and listing
    content, including descriptions, photos, video or animated
    tours, floor plans and site plans.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>CrossFire Contact Center</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides call and email routing technology and agent staffing on
    a permanent or overflow basis to answer phone calls and emails
    from prospects or residents.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>CrossFire Leasing Portal</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Enables owners and managers to create customized property
    websites with rich content and search capabilities and list them
    on various Internet listing services and search engines.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>CrossFire Resident Portal</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides a portal that enables residents to view community
    events, enter or check the status of service requests, review
    statements, pay rent online and renew leases.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>CrossFire Studio</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides advertising and marketing planning services through a
    talented team of multi-family marketing experts including
    advertising placement and performance evaluation, leasing and
    renewal campaign design and marketing consulting services.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">YieldStar
    (Asset Optimization Systems)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rental housing property rents have traditionally been set by
    owners and managers based on their knowledge of the market and
    other intangible or intuitive criteria. YieldStar is a
    scientific yield management system, similar to those used in the
    airline and hotel industries, that enables owners and managers
    to optimize rents to achieve the overall highest yield, or
    combination of rent and occupancy, at each property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
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    <BR>
    80
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Product Center</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>YieldStar Price Optimizer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Uses current customer and market data and statistically derived
    supply/demand forecasts and price elasticity models to calculate
    and present optimal prices for each rental unit.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>YieldStar Pricing Advisory Services</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Offers outsourced pricing management advisory services for
    owners and managers who want to utilize Price Optimizer without
    incurring the costs to staff and support it in-house.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>M/PF Research</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides multi-family housing market research through a
    well-established and trusted name in multi-family market
    intelligence. The M/PF Research database includes monthly and
    quarterly information on occupancy and rents for more than
    36,000 rental housing properties in the United States
    representing 284 defined metropolitan statistical areas as of
    February 2010.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">LeasingDesk
    (Risk Mitigation Systems)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    LeasingDesk risk mitigation systems enable rental housing
    property owners and managers to reduce delinquency, liability
    and property damage risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Product Center</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>LeasingDesk Screening</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Evaluates an applicant&#146;s credit using a scoring model
    calibrated to predict resident default and payment behavior by
    leveraging our proprietary database of resident rental payment
    history generated from our property management systems.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Criminal Background Services</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Ascertains if a prospective resident has committed a crime or
    been evicted from a previous apartment by accessing databases
    that are aggregated from third-party data providers.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Credit Optimizer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Allows owners and managers to optimize credit thresholds based
    on occupancy levels and adjust deposit and rent amounts based on
    the default risk of the resident in a yield neutral manner.
    Credit Optimizer is expected to remain in beta testing
    throughout 2010.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>LeasingDesk Insurance Services</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Offers liability and renter&#146;s insurance. Liability policies
    protect owners and managers against financial loss due to
    resident-caused damage, while renter&#146;s insurance provides
    additional coverage for resident personal belongings in the
    event of loss.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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    81
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Velocity
    (Billing and Utility Management Services)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Velocity offers a complete range of billing and utility
    management services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Product Center</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Convergent Billing Services</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides automated monthly invoicing services enabling owners
    and managers to increase collections by sending each resident a
    monthly invoice that combines rent, small balances and utility
    charges onto a single invoice.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Energy Recovery Services</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides automated utility billing services to enable owners and
    managers to detect and collect utility costs that are the
    residents&#146; responsibility.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Infrastructure Services</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides contractor services to install electric, gas and water
    meters in apartment communities through three individual product
    centers.  Velocity also provides consulting services to assist
    owners and managers in implementing and managing energy, media,
    data and telecom services at their communities.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">OpsTechnology
    (Spend Management Systems)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OpsTechnology offers spend management systems that enable owners
    and managers to better control costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Product Center</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OpsBuyer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Integrates purchase orders, onsite accounts payable, automated
    workflow approval (including mobile approvals), budget and spend
    limit control, centralized expense reporting tools and document
    management through our on demand spend management tool.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OpsMarket</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Enables owners and managers to create private marketplaces to
    manage the transactions between their properties and their
    preferred suppliers and service providers through our on demand
    eProcurement solution.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OpsInvoice</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides an on demand invoice management solution that
    centralizes the processing of both electronic and paper invoices
    across the owner&#146;s or manager&#146;s portfolio.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OpsAdvantage</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Offers a catalog of negotiated discounts for selected vendors
    across several major purchasing categories for owners and
    managers that are too small to negotiate volume discounts.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>OpsBid</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides an on demand procurement system used primarily for
    larger capital and rehab related purchases that are not ordered
    regularly.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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    <BR>
    82
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shared
    Cloud Services</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer shared cloud services that are tightly integrated with
    our property management systems and software-enabled valued
    added services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Cloud Services</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Key Functionality</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Portfolio Reporting</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Aggregates the data from our other solutions and third-party
    applications and gives owners and managers access to business
    critical reports and actionable analytical information about the
    performance of their properties.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Document Management</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Provides storage, retrieval, security, and archiving of all
    documents and forms associated with a property management
    company&#146;s business processes and procedures.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Payment Processing</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Enables owners and managers to collect rent and other payments
    electronically from residents through check, money order,
    automated clearing house, or ACH, or credit/debit card.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Online Learning</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Allows owners and managers to train geographically dispersed
    employees in a cost-effective and timely fashion, and allows
    employees to complete their coursework at their convenience.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    RealPage Cloud</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate a robust application infrastructure, marketed to our
    customers as The RealPage Cloud, which supports the delivery of
    our solutions and also allows owners and managers to outsource
    portions of their IT operations. The RealPage Cloud operates
    over redundant 10GBPS dedicated fiber links connecting two data
    centers containing hundreds of servers and multiple storage area
    networks. This architecture makes it possible to expand the data
    center incrementally with little or no disruption as more users
    or additional applications are added. The RealPage Cloud
    consists of more than 1,300 virtual servers, 350 physical
    servers and 400&#160;terabytes of data. The RealPage Cloud spans
    approximately 30,000 locations and processes an average of
    15&#160;million transactions per day and, at peak times,
    supports over 75,000 unique users.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The RealPage Cloud is based on an open architecture that enables
    third-party applications to access OneSite using either Online
    Data Exchanges or Site Data Exchanges, which we refer to as
    AppConnectors. Today, we maintain more than 150 different public
    and private AppConnectors interfacing with a variety of
    third-party applications and processing hundreds of thousands of
    transactions per day. These AppConnectors enable our cloud
    services to access and interface with third-party property
    management system data to one or more of our software-enabled
    <FONT style="white-space: nowrap">value-added</FONT>
    services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our system is designed to replicate data into a
    Universal Data Store, or UDS, each day. Access to UDS is enabled
    through an access layer called UDS Direct, which enables
    customers to build portfolio reports, dashboards and alerts
    using any Open Database Connectivity or Java Database
    Connectivity compliant report writer tool such as Microsoft
    Excel, Microsoft Access, Microsoft SQL Server Reporting Service
    or Crystal Reports. UDS is also transmitted to a number of our
    larger customers each night to feed portfolio reporting systems
    that they have built internally.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we employed 45 professionals who
    are responsible for maintaining data security, integrity,
    availability, performance and business continuity in our cloud
    computing facilities. We annually conduct two major audits of
    our cloud computing infrastructure, including SAS 70
    Type&#160;II and Payment Card Industry, or PCI, audits. In
    addition, certain customers conduct separate business continuity
    audits of their own.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to our production data centers, we manage a separate
    development and quality assurance testing facility used to
    control the pre-production testing required before each new
    release of our on demand
</DIV>
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    <BR>
    83
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    software. We typically deploy new releases of the software
    underlying our on demand software solutions on a monthly or
    quarterly schedule depending on the solution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Professional
    Services</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have developed repeatable, cost-effective consulting and
    implementation services to assist our customers in taking
    advantage of the capabilities enabled by our platform. Our
    consulting and implementation methodology leverages the nature
    of our on demand software architecture, the industry-specific
    expertise of our professional services employees and the design
    of our platform to simplify and expedite the implementation
    process. Our consulting and implementation services include
    project and application management procedures, business process
    evaluation, business model development and data conversion. Our
    consulting teams work closely with customers to ensure the
    smooth transition and operation of our systems.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also offer a variety of training programs through our Online
    Learning Services for training administrators and onsite
    property managers on the use of our solutions and on current
    issues in the property management industry. Training options
    include regularly hosted classroom and online instruction
    (through our online learning courseware) as well as online
    seminars, or webinars. We also enable our customers to integrate
    their own training content with our content to deliver an
    integrated and customized training program for their on-site
    property managers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Product
    Support</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer product support services that provide our customers
    with assistance from our product support professionals by phone
    or email in resolving issues with our solutions. We offer three
    product support options: Standard, Frontline and Platinum. The
    Standard option includes product support during business hours.
    The Frontline option includes the features of the Standard
    option plus escalation to senior support representatives. The
    Platinum option includes the features of the Frontline option
    plus emergency product support on Saturdays and a designated
    senior product support liaison. Technology support is also
    available for consultations on firewalls, communications,
    security measures (including virus alerts), workstation
    configuration and disaster recovery options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also sponsor the RealPage User Group to facilitate
    communications between us and our community of users. The
    RealPage User Group is governed by a steering committee of our
    customers, which consists of two elected positions and
    subcommittee chairs, each representing a RealPage product center
    or group of product centers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Product
    Development</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We devote a substantial portion of our resources to developing
    new solutions and enhancing existing solutions, conducting
    product testing and quality assurance testing, improving core
    technology and strengthening our technological expertise in the
    rental housing industry. We typically deploy new releases of the
    software underlying our on demand software solutions on a
    monthly or quarterly schedule depending on the solution. As of
    December&#160;31, 2009, our product development group consisted
    of 214&#160;employees in North America and 44&#160;employees
    located in Hyderabad, India. Product development expense totaled
    $21.7&#160;million, $28.8&#160;million and $27.4&#160;million
    for 2007, 2008 and 2009, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales and
    Marketing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell our software and services through our direct sales
    organization. As of December&#160;31, 2009, we employed 75 sales
    representatives. Our sales force is organized by geographic
    region and divided into teams based on the size of our
    prospective customers and property type. This focus provides a
    higher level of service and understanding of our customers&#146;
    unique needs. Our typical sales cycle with a prospective
    customer begins with the generation of a sales lead through
    Internet marketing, tele-sales efforts, trade shows or other
    means of referral. The sales lead is followed by an assessment
    of the customer&#146;s requirements, sales presentations and
    product demonstrations. Our sales cycle can vary substantially
    from customer to customer, but typically requires three to six
    months for larger customers and one to six weeks for smaller
    customers.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to new customer sales, we sell additional solutions
    and consulting services to our existing customers to help them
    more efficiently and effectively manage their properties as the
    rental housing market evolves and competitive conditions change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We generate customer leads, accelerate sales opportunities and
    build brand awareness through our marketing programs. Our
    marketing programs target property management company
    executives, technology professionals and senior business
    leaders. Our marketing team focuses on the unique needs of
    customers within our target markets. Our marketing programs
    include the following activities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    field marketing events for customers and prospects;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    participation in, and sponsorship of, user conferences, trade
    shows and industry events;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    customer programs, including user meetings and our online
    customer community;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    online marketing activities, including email campaigns, online
    advertising, web campaigns, webinars and use of social media,
    including blogging, Facebook, and Twitter;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    public relations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    use of our website to provide product and company information,
    as well as learning opportunities for potential customers.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We host our annual user conference where customers both
    participate in and deliver a variety of programs designed to
    help accelerate business performance through the use of our
    integrated platform of solutions. The conferences feature a
    variety of customer speakers, panelists and presentations
    focused on businesses of all sizes. The event also brings
    together our customers, technology vendors, service providers
    and other key participants in the rental housing industry to
    exchange ideas and best practices for improving business
    performance. Attendees gain insight into our product plans and
    participate in interactive sessions that give them the
    opportunity to provide input into new features and functionality.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Strategic
    Relationships</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain relationships with a variety of technology vendors
    and service providers to enhance the capabilities of our
    integrated platform of solutions. This approach allows us to
    expand our platform and customer base and to enter new markets.
    We have established the following types of strategic
    relationships:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Technology
    Vendors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have relationships with a number of leading technology
    companies whose products we integrate into our platform or offer
    to complement our solutions. The cooperative relationships with
    our software and hardware technology partners allow us to build,
    optimize and deliver a broad range of solutions to our customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Service
    Providers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have relationships with a number of service providers that
    offer complementary services that integrate into our platform
    and address key requirements of rental property owners and
    managers, including credit card and ACH services, transaction
    processing capabilities and insurance underwriting services.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Customers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are committed to developing long-term customer relationships
    and working closely with our customers to configure our
    solutions to meet the evolving needs of the rental housing
    industry. Our customers include REITs, leading property
    management companies, fee managers, regionally based owner
    operators and service providers. As of December&#160;31, 2009,
    we had 5,032 customers who used one or more of our on demand
    software solutions to help manage the operations of
    approximately 4.6&#160;million rental housing units. Our
    customers include nine of the ten largest multi-family property
    management companies in the United States,
</DIV>
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    ranked as of January&#160;1, 2009, based on number of units
    managed. For the years ended December&#160;31, 2007, 2008 and
    2009, no one customer accounted for more than 5% of our revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Note&#160;2 to Notes to Consolidated Financial Statements
    for the year ended December&#160;31, 2009 for further
    information regarding measurement of our international revenue
    and location of our long-lived assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We face competition primarily from point solution providers
    including traditional software vendors and other on demand
    software providers. To a lesser extent, we also compete with
    internally developed and maintained solutions. Our competitors
    vary depending on our solution. Our current principal
    competitors include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the multi-family ERP market, AMSI Property Management (owned
    by Infor Global Solutions, Inc.), MRI Software LLC and Yardi
    Systems, Inc. and, in the single-family ERP market, AppFolio,
    Inc.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the applicant screening market, ChoicePoint Inc. (a
    subsidiary of Reed Elsevier Group plc), First Advantage
    Corporation (a subsidiary of The First American Corporation),
    TransUnion Rental Screening Solutions, Inc. (a subsidiary of
    TransUnion LLC)&#160;and Yardi Systems, Inc. (following its
    recent acquisition of RentGrow Inc., an applicant screening
    provider);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the insurance market, Assurant, Inc. and a number of national
    insurance underwriters (including GEICO Corporation) that market
    renters insurance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the CRM market, contact center and call tracking service
    providers Call Source Inc., Level&#160;One, Inc., Yardi Systems,
    Inc. (which recently announced its intention to build a call
    center) and numerous regional and local call centers, lead
    tracking solution providers eReal Estate Integration, Inc., Lead
    Tracking Solutions (a division of O.C. Concepts, Inc.) and
    Who&#146;s Calling, Inc., content syndications and reservations
    systems providers eReal Estate Integration, Inc. and Realty
    DataTrust Corporation and companies providing web portal
    services, including Apartments24-7.com, Inc., Ellipse
    Communications, Inc., Property Solutions International, Inc.,
    Spherexx.com and Yardi Systems, Inc.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the utility billing market, American Utility Management,
    Inc., Conservice, LLC, ista North America, Inc., NWP Services
    Corporation and Yardi Systems, Inc. (following its recent
    acquisition of Energy Billing Systems, Inc.);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the revenue management market, PROS Holdings, Inc., The
    Rainmaker Group, Inc. and Yardi Systems, Inc.;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the payment processing space, Chase Paymentech Solutions, LLC
    (a subsidiary of JPMorgan Chase&#160;&#038; Co.), First Data
    Corporation, Fiserv, Inc., MoneyGram International, Inc., NWP
    Services Corporation, Property Solutions International, Inc.,
    RentPayment.com (a subsidiary of Yapstone, Inc.), Yardi Systems,
    Inc. and a number of national banking institutions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal competitive factors in our industry include total
    cost of ownership, ease of implementation, product functionality
    and scope, performance, security, scalability and reliability of
    service, brand and reputation, sales and marketing capabilities
    and financial resources of the provider. We believe that we
    compete favorably with our competitors on the basis of these
    factors. We also believe that none of our more significant
    competitors currently offer a more comprehensive or integrated
    on demand software solution. However, some of our existing
    competitors have greater name recognition, longer operating
    histories, larger installed customer bases, larger sales and
    marketing budgets, as well as greater financial, technical and
    other resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Intellectual
    Property</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We rely on a combination of copyright, trademark and trade
    secret laws, as well as confidentiality procedures and
    contractual restrictions, to establish and protect our
    proprietary rights. These laws, procedures and restrictions
    provide only limited protection. We currently have no issued
    patents or pending patent applications. In the future, we may
    file patent applications, but patents may not be issued with
    respect to these patent applications, or if
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    patents are issued, they may not provide us with any competitive
    advantages, may not be issued in a manner that gives us the
    protection that we seek and may be successfully challenged by
    third parties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We endeavor to enter into agreements with our employees and
    contractors and with parties with whom we do business in order
    to limit access to and disclosure of our proprietary
    information. We cannot be certain that the steps we have taken
    will prevent unauthorized use or reverse engineering of our
    technology. Moreover, others may independently develop
    technologies that are competitive with ours or that infringe on
    our intellectual property. The enforcement of our intellectual
    property rights also depends on any legal actions against these
    infringers being successful, but these actions may not be
    successful, even when our rights have been infringed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Furthermore, effective patent, trademark, trade dress, copyright
    and trade secret protection may not be available in every
    country in which our solutions are available over the Internet.
    In addition, the legal standards relating to the validity,
    enforceability and scope of protection of intellectual property
    rights are uncertain and still evolving.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had approximately 1,141
    employees. We consider our current relationship with our
    employees to be good. Our employees are not represented by a
    labor union and are not subject to a collective bargaining
    agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Facilities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently lease approximately 184,000&#160;square feet of
    space for our corporate headquarters and data center in
    Carrollton, Texas under lease agreements that expire in August
    2016. We also license data center space and collocation services
    at a facility in Dallas, Texas for our secondary data center. We
    have offices in Tulsa, Oklahoma; Irvine, California;
    San&#160;Francisco, California; San&#160;Diego, California;
    Williston, Vermont; Mason, Ohio; Atlanta, Georgia;
    Washington,&#160;D.C.; Winnipeg, Manitoba, Canada and Hyderabad,
    India. We believe our current and planned data centers and
    office facilities will be adequate for the foreseeable future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, we have been and may be involved in various
    legal proceedings arising from our ordinary course of business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;15, 2009, a prospective resident of one of our
    customers filed a class action lawsuit styled <I>Minor&#160;v.
    RealPage, Inc.</I> against us in the U.S.&#160;District Court
    for the Central District of California. By the parties&#146;
    mutual stipulation in August 2009, the action was transferred to
    the U.S.&#160;District Court for the Eastern District of Texas
    <FONT style="white-space: nowrap">(No.&#160;4:09CV-00439).</FONT>
    The plaintiff has alleged two individual claims and three
    <FONT style="white-space: nowrap">class-based</FONT>
    causes of action against us. Individually, the plaintiff alleges
    that we (i)&#160;willfully failed to employ reasonable
    procedures to ensure the maximum accuracy of our resident
    screening reports as required by 15&#160;U.S.C.
    &#167;&#160;1681e(b) and, in the alternative,
    (ii)&#160;negligently (within the meaning of 15&#160;U.S.C.
    &#167;&#160;1681o(a)) failed to employ reasonable procedures to
    ensure the maximum accuracy of our resident screening reports,
    as required by 15&#160;U.S.C. &#167;&#160;1681e(b), in each case
    stemming from our provision of a report that allegedly included
    inaccurate criminal conviction information. The plaintiff seeks
    actual, statutory and punitive damages on her individual claims.
    In her capacity as the putative class representative, the
    plaintiff also alleges that we: (i)&#160;willfully failed to
    provide legally mandated disclosures upon a consumer&#146;s
    request inconsistent with 15&#160;U.S.C. &#167;&#160;1681g;
    (ii)&#160;willfully failed to provide prompt notice of
    consumers&#146; disputes to the data furnishers who provided us
    with the information whose accuracy was in question, as required
    by 15&#160;U.S.C. &#167;&#167;&#160;1681i(a)(2); and
    (iii)&#160;willfully failed to provide prompt notice of
    consumers&#146; disputes to the consumer reporting agencies
    providing us with the information whose accuracy was in
    question, as required by
    15&#160;U.S.C.&#160;&#167;&#160;1681i(f). The plaintiff seeks
    certification of three separate classes in connection with these
    claims. She also seeks statutory and punitive damages, a
    declaration that our practices and procedures are in violation
    of the Fair Credit Reporting Act and attorneys&#146; fees and
    costs. Because this lawsuit is at an early stage, it is not
    possible to predict its outcome. We believe that we have
    meritorious defenses to the claims in this case and intend to
    defend it vigorously.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2007, plaintiffs filed five separate but nearly
    identical class action lawsuits in the U.S.&#160;District Court
    for the Eastern District of Texas against more than 100
    defendants. We were named as a defendant in one of those
    actions, Taylor, et al.&#160;v. Safeway, Inc., et al.
    <FONT style="white-space: nowrap">(No.&#160;2:07-CV-00017).</FONT>
    On March&#160;4, 2008, the Court consolidated these actions with
    the lead case, <I>Taylor, et al.&#160;v. Acxiom Corp.,</I> et
    al.
    <FONT style="white-space: nowrap">(No.&#160;2:07-CV-00001).</FONT>
    In their operative pleading, plaintiffs alleged that we obtained
    and held motor vehicle records in bulk from the State of Texas,
    an allegedly improper purpose in violation of the federal
    Driver&#146;s Privacy Protection Act, or the DPPA. In addition,
    the plaintiffs alleged that we obtained these records for the
    purpose of re-selling them, another allegedly improper purpose
    in violation of the DPPA. Plaintiffs further purported to
    represent a putative class of approximately 20.0&#160;million
    individuals affected by the defendants&#146; alleged DPPA
    violations. They sought statutory damages of $2,500 per each
    violation of the DPPA, punitive damages and an order requiring
    defendants to destroy information obtained in violation of the
    DPPA. In September 2008, the Eastern District of Texas dismissed
    plaintiffs&#146; complaint for failure to state a claim. The
    plaintiffs subsequently appealed the dismissal to the
    U.S.&#160;Court of Appeals for the Fifth Circuit. The primary
    issue on appeal is whether plaintiffs alleged any
    <FONT style="white-space: nowrap">injury-in-fact</FONT>
    that would give them standing to bring their claims. Predicate
    issues include whether obtaining and merely holding data states
    a claim under the DPPA, and whether re-selling data likewise
    states an actionable claim. In November 2009, the Fifth Circuit
    heard oral argument on the appeal. A decision has not yet been
    rendered. We believe that we have meritorious defenses to the
    claims in this case and intend to defend it vigorously.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2010, the District Attorney of Ventura County,
    California issued an administrative subpoena to us seeking
    certain information related to our provision of utility billing
    services in the State of California. A representative of the
    District Attorney has informed us that the subpoena was issued
    in connection with a general investigation of industry practices
    with respect to utility billing in California. Utility billing
    in California is subject to regulation by state law and various
    state administrative agencies, including the California Public
    Utility Commission, or the CPUC, and the Division of Weights and
    Measures, or the DWM. We have provided the District Attorney
    with the information requested in the subpoena. As of
    April&#160;28, 2010, the District Attorney&#146;s office has not
    initiated an administrative or other enforcement action against
    us, nor have they asserted any violations of the applicable
    regulations by us. Given the early stage of this investigation,
    it is difficult to predict its outcome and whether the District
    Attorney will pursue an administrative or other enforcement
    action against us in the State of California and what the result
    of any such action would be. However, penalties or assessments
    of violations of regulations promulgated by the CPUC or DWM may
    be calculated on a per occurrence basis. Due to the large number
    of billing transactions we process for our customers in
    California, our potential liability in an enforcement action
    could be significant. If the District Attorney ultimately
    pursues an administrative or other enforcement action against
    us, we believe that we have meritorious defenses to the
    potential claims and would defend them vigorously. However, even
    if we were successful in defending against such claims, the
    proceedings could result in significant costs and divert
    management&#146;s attention.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Officers and Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our executive officers and directors and their ages and
    positions as of April&#160;1, 2010 are set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="68%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position(s)</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    63
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chairman of the Board, Chief Executive Officer and Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    47
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer and Treasurer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    44
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    President
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    38
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Executive Vice President, Multifamily Solutions
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jason D. Lindwall
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    39
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Operations Officer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. Van Valkenberg
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    63
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Legal Officer and Secretary
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alfred R. Berkeley,&#160;III
    <SUP style="font-size: 85%; vertical-align: top">(1),(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    65
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard M. Berkeley
    <SUP style="font-size: 85%; vertical-align: top">(2),(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    57
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peter Gyenes
    <SUP style="font-size: 85%; vertical-align: top">(1),(2),(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    64
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey T. Leeds
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    54
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jason A. Wright
    <SUP style="font-size: 85%; vertical-align: top">(1),(2),(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    38
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of our audit committee.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of our compensation committee.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of our nominating and governance committee</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Stephen T. Winn </I>has served as our Chief Executive
    Officer, Chairman of the Board and a member of our board of
    directors since November&#160;1998. From November&#160;1998 to
    December 2009, Mr.&#160;Winn also served as our President. From
    January 1998 to March 1999, Mr.&#160;Winn served in various
    executive positions, including President of Research Institute
    of America, a provider of information services to the accounting
    industry and a wholly owned subsidiary of Thomson Reuters
    Corporation. From June 1969 to January 1998, Mr.&#160;Winn
    served as President and Chief Executive Officer of Computer
    Language Research Inc., a publicly traded company focused on tax
    compliance, tax research and accounting software, which was
    acquired by Thomson Reuters Corporation. Mr.&#160;Winn is a
    member of the board of directors of the National Multi Housing
    Council. In January 2002, he was one of five people recognized
    by the National Apartment Association as a leader in the
    multi-family industry. Mr.&#160;Winn received his B.S. in
    electrical engineering from The University of Texas at Austin
    and his M.S. in management from Stanford University. In addition
    to Mr.&#160;Winn&#146;s role as our Chief Executive Officer, we
    believe Mr.&#160;Winn&#146;s qualifications to serve on our
    board of directors include his previous service in executive
    positions at various public and private technology companies and
    his extensive experience in the multi-family rental housing
    industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Timothy J. Barker </I>has served as our Chief Financial
    Officer and Treasurer since he joined us in October 2005. Prior
    to joining us, Mr.&#160;Barker served from March 2003 to
    September 2005 as Chief Financial Officer of etalk Corporation,
    a provider of enterprise class contact management performance
    solutions. From August 2000 to March 2003, Mr.&#160;Barker
    worked as an independent consultant and provided chief financial
    officer consulting services to public and private companies.
    From November 1995 to July 2000, Mr.&#160;Barker held various
    positions at F.Y.I. Incorporated, a document and information
    outsourcing solution provider, including Executive Vice
    President and Chief Financial Officer. Mr.&#160;Barker received
    his B.B.A. in accounting from Texas Tech University and has been
    a Certified Public Accountant in the state of Texas since 1985.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dirk D. Wakeham </I>has served as our President since
    December 2009 and previously served as our Executive Vice
    President, Property Solutions, from January 2009 to November
    2009 and our Senior Vice President, President, LeasingDesk Risk
    Mitigation Systems, from April 2007 to December 2008. Prior to
    joining us in April 2007, Mr.&#160;Wakeham was the Founder,
    President and Chief Executive Officer of Multifamily Internet
    Ventures, LLC, which he founded in 2001 and we acquired in April
    2007. He also previously served as Senior Vice President at
    Western National Group, where he was responsible for the
    management and
</DIV>
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    <BR>
    89
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    deployment of enterprise systems focused on the management and
    operation of a diverse multi-family portfolio. Mr.&#160;Wakeham
    received his B.A. in business administration from California
    State University, Fullerton.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jason D. Lindwall </I>has served as our Chief Operations
    Officer since joining us in April 2008. Prior to joining us,
    Mr.&#160;Lindwall held various positions, including Chief
    Information Officer, at Aspen Square Management, Inc. from
    December 1993 to February 2008. Mr.&#160;Lindwall received his
    B.S. in business administration computer information systems
    from Western New England College.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>William E. Van Valkenberg </I>has served as our Chief Legal
    Officer and Secretary since joining us in September 2009. Prior
    to joining us, Mr.&#160;Van Valkenberg worked as an executive
    consultant from January 2009 to September&#160;2009 and provided
    consulting services to us from July&#160;2009 to
    September&#160;2009. From February&#160;2006 to
    November&#160;2008, Mr.&#160;Van Valkenberg was a senior
    executive and Chief Legal Officer of DayJet Corporation, an
    early stage regional on demand jet service. While Mr.&#160;Van
    Valkenberg was employed by DayJet Corporation, it filed a
    voluntary petition for Chapter&#160;7 bankruptcy in
    November&#160;2008. Mr. Van Valkenberg has also been outside
    counsel to public and private businesses with several law firms,
    most recently Holland&#160;&#038; Knight LLP, where he was a
    partner from June 2002 to February 2006. Mr.&#160;Van Valkenberg
    received his B.A. in economics from the University of Washington
    and his J.D. from the University of Utah S.J. Quinney College of
    Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Ashley Chaffin Glover </I>has served as our Executive Vice
    President, Multifamily Solutions since January&#160;2010 and
    previously served as our Executive Vice President, Resident
    Solutions from April 2009 to January&#160;2010 and as our Senior
    Vice President, President, Velocity Utility and Billing
    Services, from March 2005 until April&#160;2009. From November
    2004 through early March 2005, Ms.&#160;Chaffin Glover served us
    in a consulting capacity in conjunction with our acquisition of
    The Pleco Group, LLC. From August 1995 to July 1997 and again
    from August 1999 to July 2003, Ms.&#160;Chaffin Glover handled
    both international and domestic assignments for
    McKinsey&#160;&#038; Company. Ms.&#160;Chaffin Glover received
    her B.S. in computer science from Southern Methodist University
    and her M.B.A. from Harvard University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Alfred R. Berkeley,&#160;III </I>has served as a member of
    our board of directors since December 2003 and as Chairman of
    our audit committee since January 2004. Mr.&#160;Berkeley
    currently serves as the Chairman of Pipeline Financial Group,
    Inc., the parent of Pipeline Trading Systems LLC, a block
    trading brokerage service, which he joined in December 2003.
    From December 2003 to March 2010, Mr.&#160;Berkeley also served
    as the Chief Executive Officer of Pipeline Financial Group, Inc.
    He also serves as Vice-Chairman of the National Infrastructure
    Advisory Council for the President of the United States, a
    trustee of Johns Hopkins University and a member of the Johns
    Hopkins University Applied Physics Laboratory, LLC. He formerly
    served as Vice Chairman of the Nomination Evaluation Committee
    for the National Medal of Technology and Innovation, which makes
    candidate recommendations to the Secretary of Commerce. He was
    appointed Vice Chairman of the NASDAQ Stock Market, Inc. in July
    2000, serving through July 2003, and served as President of
    NASDAQ from 1996 until 2000. From 1972 to 1996,
    Mr.&#160;Berkeley served in a number of capacities at Alex.
    Brown&#160;&#038; Sons Incorporated, which was acquired by
    Bankers Trust New York Corporation and later by Deutsche Bank
    AG. Most recently, he was Managing Director in the corporate
    finance department where he financed computer software and
    electronic commerce companies. He joined Alex. Brown&#160;&#038;
    Sons Incorporated as a Research Analyst in 1972 and became a
    general partner in 1983. From 1985 to 1987, he served as Head of
    Information Services for the firm. From 1988 to 1990,
    Mr.&#160;Berkeley took a leave of absence from Alex.
    Brown&#160;&#038; Sons Incorporated to serve as President and
    Chief Executive Officer of Rabbit Software Inc., a public
    telecommunications software company. He served as a captain in
    the United States Air Force and a major in the United States Air
    Force Reserve. Mr.&#160;Berkeley also served as a director of
    Webex Communications, Inc., which was acquired by Cisco Systems,
    Inc. (NASDAQ: CSCO) in May 2007. Mr.&#160;Berkeley also served
    as a director of Kintera, Inc. until May 2008, when it was
    acquired by Blackbaud, Inc. (NASDAQ: BLKB). Mr.&#160;Berkeley
    served as a director of the National Research Exchange, Inc., a
    registered broker dealer, until it ceased operations in December
    2007. Mr.&#160;Berkeley also serves as a director of several
    private companies. Mr.&#160;Berkeley received his B.A. in
    English from the University of Virginia and his M.B.A. from The
    Wharton School of the University of Pennsylvania. We believe
    Mr.&#160;Berkeley&#146;s qualifications to serve on our board of
    directors include his extensive experience in corporate finance
    and securities matters, including
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    his experience as Chief Executive Officer of various companies
    and his leadership positions with the NASDAQ Stock Market, Inc.,
    and his knowledge gained from service on the boards of various
    public and private companies and federal committees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Richard M. Berkeley </I>has served as a member of our board
    of directors since December 2005, as a member of each of our
    compensation committee and nominating and governance committee
    since May 2007 and as Chairman of our nominating and governance
    committee since February 2010. Mr.&#160;Berkeley is a member of
    Camden Partners Holdings, LLC, where he focuses on investments
    in the business and financial services, health care and
    education markets for the firm. Prior to joining Camden Partners
    in October 2002, Mr.&#160;Berkeley spent 19&#160;years with
    Alex. Brown&#160;&#038; Sons Incorporated and its successor
    organizations, Bankers Trust&#160;New York Corporation and
    Deutsche Bank Securities Inc., where he was responsible for the
    origination, structuring and consummation of private equity
    financings for public and private companies. He currently serves
    on the board of directors of a number of private companies,
    educational institutions and charitable organizations.
    Mr.&#160;Berkeley served as an officer in the United States Air
    Force between 1974 and 1976. He received his B.A. in
    history,&#160;J.D. and M.B.A. from the University of Virginia.
    We believe Mr.&#160;Berkeley&#146;s qualifications to serve on
    our board of directors include his extensive business experience
    and knowledge in equity financings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Peter Gyenes </I>has served as a member or our board of
    directors since January 2010. Mr.&#160;Gyenes has served as the
    non-executive Chairman of the board of directors of Sophos plc,
    a global security software company, since May 2006.
    Mr.&#160;Gyenes served as Chairman and Chief Executive Officer
    of Ascential Software Corporation (NASDAQ: ASCL), a market
    leader in data integration software, and its predecessor
    companies VMark Software, Ardent Software and Informix from 1996
    until it was acquired by International Business Machines
    Corporation in 2005. He currently serves on the boards of
    directors of Lawson Software, Inc. (NASDAQ: LWSN), Netezza
    Corporation (NYSE: NZ), Pegasystems Inc. (NASDAQ: PEGA) and
    VistaPrint Limited (NASDAQ: VPRT), as well as several private
    companies, and serves as trustee emeritus of the Massachusetts
    Technology Leadership Council. Mr.&#160;Gyenes previously served
    on the board of directors of webMethods Inc. (NASDAQ: WEBM)
    (acquired by Software AG Darmstadt) from 2005 to 2007, Applix,
    Inc. (NASDAQ: APLX) (acquired by Cognos, Inc.) from 2000 to 2007
    and BladeLogic, Inc. (NASDAQ: BLOG) (acquired by BMC Software,
    Inc.) from 2006 to 2008. Mr.&#160;Gyenes received his B.A. in
    mathematics and his M.B.A. in marketing from Columbia
    University. We believe Mr.&#160;Gyenes&#146; qualifications to
    serve on our board of directors include his experience as the
    Chief Executive Officer of a publicly traded company, his
    knowledge gained from service on the boards of various public
    and private companies and his more than 40&#160;years of
    experience in technology, sales, marketing and general
    management positions within the computer systems and software
    industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jeffrey T. Leeds </I>has served as a member of our board of
    directors and a member of our nominating and governance
    committee since December 1999. He is President and Co-Founder of
    Leeds Equity Partners, LLC, which he co-founded in 1993, a
    private equity firm that focuses on the education, information
    services and training industries. Prior to co-founding Leeds
    Equity Partners, Mr.&#160;Leeds spent seven years specializing
    in mergers and acquisitions and corporate finance at Lazard
    Freres&#160;&#038; Co. LLC, a subsidiary of Lazard Group LLC.
    Prior to joining Lazard Freres&#160;&#038; Co. LLC,
    Mr.&#160;Leeds served as a law clerk to the Hon. William J.
    Brennan,&#160;Jr. of the Supreme Court of the United States
    during the 1985&#160;October Term. Mr.&#160;Leeds also worked in
    the corporate department of the law firm of Cravath,
    Swaine&#160;&#038; Moore LLP in New York after graduating from
    law school. Mr.&#160;Leeds currently serves on the board of
    directors of Education Management Corporation (NASDAQ: EDMC),
    Instituto de Banca y&#160;Comercio and SeatonCorp. and as a
    Trustee on the United Federation of Teacher&#146;s Charter
    School Board in New York City. Mr.&#160;Leeds received his B.A.
    in history <I>summa cum laude</I> from Yale University and his
    J.D. from Harvard Law School. He was also a Marshall Scholar at
    the University of Oxford. We believe Mr.&#160;Leeds&#146;
    qualifications to serve on our board of directors include his
    extensive business and legal experience in corporate finance and
    his knowledge gained from service on the boards of various
    public and private companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jason A. Wright </I>has served as a member or our board of
    directors since December 2003 and as the Chairman of our
    compensation committee since October 2006 and a member of our
    audit committee since January 2004. Mr.&#160;Wright is a partner
    in the Tech&#160;&#038; Telecom Group at Apax Partners LLC,
    where he focuses
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    primarily on investments in enterprise software and
    technology-enabled services. Prior to joining Apax in 2000,
    Mr.&#160;Wright served in a variety of roles at General Electric
    Capital Corporation, a subsidiary of General Electric
    Corporation, including the evaluation and execution of
    investment opportunities for the Technology Ventures Group, and
    Mr.&#160;Wright was also a consultant at Andersen Consulting,
    now Accenture plc. Mr.&#160;Wright currently serves on the board
    of directors of various private companies. Mr.&#160;Wright
    received his B.A. in economics from Tufts University and his
    M.B.A. in finance from The Wharton School of the University of
    Pennsylvania. We believe Mr.&#160;Wright&#146;s qualifications
    to serve on our board of directors include his extensive
    business and financial experience related to enterprise software
    and technology-enabled services companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our executive officers are elected by, and serve at the
    discretion of, our board of directors. Certain of our
    stockholders who beneficially own shares representing
    approximately 96.5% of our outstanding capital stock as of
    December&#160;31, 2009 have entered into a shareholders
    agreement that, among other things, provides for the voting of
    their shares with respect to the constituency of our board of
    directors. See &#147;Certain Relationships and Related Party
    Transactions&#160;&#151; 2010&#160;Shareholders Agreement&#148;
    for further description of this agreement. The current members
    of our board of directors have been elected by our stockholders
    voting in accordance with the terms of this agreement, which
    will terminate upon completion of this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With the exception of Alfred R. Berkeley,&#160;III and Richard
    M. Berkeley, who are brothers, there are no family relationships
    among any of our directors or executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the information presented above regarding each
    director&#146;s specific experience, qualifications, attributes
    and skills that led our board of directors to the conclusion
    that each should serve as a director, we also believe that all
    of our directors have demonstrated business acumen, ethical
    integrity and an ability to exercise sound judgment, as well as
    a commitment of service to us and our board of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors currently consists of six members. At
    each annual meeting of stockholders, our directors will be
    elected for a one-year term until their successors are elected
    and qualified, or until their earlier resignation or removal. We
    expect that our amended and restated certificate of
    incorporation and our amended and restated bylaws, to be
    effective upon the completion of this offering, will provide
    that the number of our directors will be fixed from time to time
    by a resolution of the majority of our board of directors.
    Nine&#160;directors are currently authorized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Independence</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, our board of directors undertook a review of
    the independence of our directors and considered whether any
    director has a material relationship with us that could
    compromise his or her ability to exercise independent judgment
    in carrying out his or her responsibilities. As a result of this
    review, our board of directors determined that Alfred R.
    Berkeley, III, Richard M. Berkeley, Jeffrey T. Leeds, Jason A.
    Wright and Peter Gyenes, representing five of our six directors
    currently in office, are &#147;independent directors&#148; as
    defined under the rules of the SEC and the NASDAQ Global Market,
    or NASDAQ, and constitute a majority of independent directors of
    our board of directors as required by the rules of the SEC and
    NASDAQ.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Committees
    of the Board of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has an audit committee, a compensation
    committee and a nominating and governance committee, each of
    which has the composition and responsibilities described below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our audit committee is responsible for, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    selecting and hiring our independent auditors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approving the audit and non-audit services to be performed by
    our independent auditors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    evaluating the qualifications, performance and independence of
    our independent auditors;
</TD>
</TR>

</TABLE>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    monitoring the integrity of our financial statements and our
    compliance with legal and regulatory requirements as they relate
    to financial statements or accounting matters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing the adequacy and effectiveness of our internal control
    policies and procedures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    discussing the scope and results of the audit with the
    independent auditors and reviewing with management and the
    independent auditors our interim and year-end operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preparing the audit committee report required in this prospectus
    and in our annual proxy statement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and evaluating, at least annually, its own performance
    and that of its members, including compliance with the committee
    charter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our audit committee is currently composed of Alfred R.
    Berkeley,&#160;III, Jason A. Wright and Peter Gyenes.
    Mr.&#160;Berkeley has been appointed the Chairman of our audit
    committee. Our board of directors has determined that each
    member of our audit committee is independent under the
    applicable requirements of NASDAQ and SEC rules and regulations.
    Our board of directors has determined that each member of our
    audit committee meets the requirements for financial literacy
    and sophistication, and qualifies as an &#147;audit committee
    financial expert,&#148; under the applicable requirements of
    NASDAQ and SEC rules and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has adopted an audit committee charter.
    We believe that the composition of our audit committee, and our
    audit committee&#146;s charter and functioning, will comply with
    the applicable requirements of NASDAQ and SEC rules and
    regulations. We intend to comply with future requirements to the
    extent they become applicable to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the completion of this offering, the full text of our
    audit committee charter will be posted on the investor relations
    portion of our website at
    <FONT style="white-space: nowrap">http://www.realpage.com</FONT>
    and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee is responsible for, among other
    things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and approving corporate goals and objectives relevant
    to compensation of our Chief Executive Officer and other
    executive officers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and approving the following for our Chief Executive
    Officer and our other executive officers: annual base salaries,
    annual incentive bonuses, including the specific goals and
    amounts, equity compensation, employment agreements, severance
    arrangements and change in control arrangements and any other
    benefits, compensation or arrangements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing the succession planning for our executive officers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and recommending compensation goals and bonus and
    stock compensation criteria for our employees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and recommending compensation programs for outside
    directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preparing the compensation discussion and analysis and
    compensation committee report that the SEC requires in our
    annual proxy statement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    administering, reviewing and making recommendations with respect
    to our equity compensation plans;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and evaluating, at least annually, its own performance
    and that of its members, including compliance with the committee
    charter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee is currently composed of Jason A.
    Wright, Alfred R. Berkeley,&#160;III, Richard M. Berkeley and
    Peter Gyenes, each of whom is a non-employee member of our board
    of directors. Mr.&#160;Gyenes has been appointed to serve as the
    Chairman of our compensation committee. Our board of directors
    has
</DIV>
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    <BR>
    93
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    determined that each member of our compensation committee is
    independent under the applicable requirements of NASDAQ and SEC
    rules and regulations, is a non-employee director, as defined by
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    promulgated under the Securities and Exchange Act of 1934, as
    amended, or the Exchange Act, and is an outside director, as
    defined pursuant to Section&#160;162(m) of the Internal Revenue
    Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has adopted a compensation committee
    charter. We believe that the composition of our compensation
    committee, and our compensation committee&#146;s charter and
    functioning, will comply with the applicable requirements of
    NASDAQ and SEC rules and regulations. We intend to comply with
    future requirements to the extent they become applicable to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the completion of this offering, the full text of our
    compensation committee charter will be posted on the investor
    relations portion of our web site at
    <FONT style="white-space: nowrap">http://www.realpage.com</FONT>
    and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nominating
    and Governance Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our nominating and governance committee is responsible for,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assisting our board of directors in identifying prospective
    director nominees and recommending nominees for each annual
    meeting of stockholders to the board of directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing developments in corporate governance practices and
    developing and recommending governance principles applicable to
    our board of directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    overseeing the evaluation of our board of directors and
    management;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    recommending members for each board committee to our board of
    directors; reviewing and monitoring our code of business conduct
    and ethics and actual and potential conflicts of interest of
    members of our board of directors and officers;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and evaluating, at least annually, its own performance
    and that of its members, including compliance with the committee
    charter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our nominating and governance committee is currently composed of
    Richard M. Berkeley, Peter Gyenes, Jeffrey T. Leeds and Jason A.
    Wright. Mr. Berkeley has been appointed the Chairman of our
    nominating and governance committee. Our board of directors has
    determined that each member of our nominating and governance
    committee is independent under the applicable requirements of
    NASDAQ and SEC rules and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has adopted a nominating and governance
    committee charter. We believe that the composition of our
    nominating and governance committee, and our nominating and
    governance committee&#146;s charter and functioning, will comply
    with the applicable requirements of NASDAQ and SEC rules and
    regulations. We intend to comply with future requirements to the
    extent they become applicable to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the completion of this offering, the full text of our
    nominating and governance committee charter will be posted on
    the investor relations portion of our website at
    <FONT style="white-space: nowrap">http://www.realpage.com</FONT>
    and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Code
    of Business Conduct and Ethics</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has adopted a code of business conduct
    and ethics. The code applies to all of our employees, officers
    (including our principal executive officer, principal financial
    officer, principal accounting officer or controller, or persons
    performing similar functions), including directors and
    consultants. Following the completion of this offering, the full
    text of our code of business conduct and ethics will be posted
    on the investor relations portion of our website at
    <FONT style="white-space: nowrap">http://www.realpage.com</FONT>
    and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel. We intend to disclose future
    amendments to certain provisions of our code of business conduct
    and
</DIV>
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    <BR>
    94
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ethics, or waivers of such provisions, applicable to any
    principal executive officer, principal financial officer,
    principal accounting officer or controller, or persons
    performing similar functions or our directors on our website.
    The inclusion of our website address in this prospectus does not
    include or incorporate by reference the information on our
    website into this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee Interlocks and Insider Participation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of the members of our compensation committee is an officer
    or employee of our company. None of our executive officers
    currently serves, or in the past year has served, as a member of
    the board of directors or compensation committee of any entity
    that has one or more executive officers serving on our board of
    directors or compensation committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, we have not paid any cash compensation to our
    directors for their services as directors or as members of
    committees of our board of directors. We have instead granted
    options to our non-employee directors who are not affiliated
    with our major stockholders as set forth below. However,
    effective April 1, 2010, we will provide our independent
    directors with both cash and equity compensation as described
    below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Option Grants to Alfred R. Berkeley,&#160;III</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;9, 2004, we granted an option to purchase
    250,000&#160;shares of our common stock to Alfred R. Berkeley,
    III at an exercise price of $1.00. The option is immediately
    exercisable. We have a right to repurchase all shares acquired
    upon exercise of the option, which repurchase right expires as
    to one forty-eighth of the shares issued upon exercise of the
    stock option on the last day of each month beginning in February
    2004, subject to Mr.&#160;Berkeley&#146;s continued service
    through each applicable date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;11, 2005, we granted an option to purchase
    100,000&#160;shares of our common stock to Mr.&#160;Berkeley at
    an exercise price of $1.00. The option is immediately
    exercisable. We have a right to repurchase all shares acquired
    upon exercise of the option, which repurchase right expires as
    to one forty-eighth of the shares issued upon exercise of the
    stock option on the last day of each month beginning in April
    2005, subject to Mr.&#160;Berkeley&#146;s continued service
    through each applicable date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;17, 2008, we granted an option to purchase
    50,000&#160;shares of our common stock to Mr.&#160;Berkeley at
    an exercise price of $3.00. The option is immediately
    exercisable. We have a right to repurchase all shares acquired
    upon exercise of the option, which repurchase right expires as
    to one forty-eighth of the shares issued upon exercise of the
    stock option on the last day of each month beginning in January
    2009, subject to Mr.&#160;Berkeley&#146;s continued service
    through each applicable date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Option Grants to Peter Gyenes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;18, 2009, we granted a contingent option to
    purchase 100,000&#160;shares of our common stock to Peter Gyenes
    at an exercise price of $3.00. The contingencies of the grant
    were satisfied and the grant became effective on
    December&#160;29, 2009. This grant was subsequently cancelled
    and terminated and replaced by a grant to Peter Gyenes of an
    option to purchase 120,000&#160;shares of our common stock at an
    exercise price of $3.75 on February&#160;25, 2010. The stock
    option vests with respect to 5% of the shares subject to the
    stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date. In the event of a &#147;change of
    control,&#148; as defined in the stock option agreement with
    Mr.&#160;Gyenes, all of the options subject to the agreement
    will become fully vested and exercisable.
</DIV>
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    <BR>
    95
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Independent
    Director Compensation Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, our compensation committee approved the
    following compensation plan for our independent directors, which
    became effective April&#160;1, 2010. Our stockholders approved
    the independent director compensation plan in March&#160;2010.
    The term &#147;independent directors&#148; for purposes of our
    independent director compensation plan will be as defined in our
    Fourth Amended and Restated Shareholders Agreement, dated as of
    March&#160;17, 2010, prior to the effectiveness of the
    registration statement of which this prospectus is a part and
    will be as defined by our board of directors following
    effectiveness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Retainer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    $6,000 per quarter
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit committee chair retainer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    $4,500 per quarter
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit committee member (excluding chair) retainer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    $3,000 per quarter
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other board committee chair retainer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    $3,000 per quarter
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other committee member (excluding chair) retainer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    $1,500 per quarter
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual equity grant
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    $50,000 restricted stock
    value<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The forfeiture provision of each annual restricted stock grant
    will lapse with respect to 5% of the restricted shares subject
    to the grant each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and the forfeiture provision will lapse
    with respect to the remaining 25% of the restricted shares
    subject to the grant on the first day of the next following
    calendar quarter, subject to the continuous service of the
    director through each applicable date.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;1, 2010, we issued 13,333 restricted shares of our
    common stock to each of Alfred R. Berkeley,&#160;III and Peter
    Gyenes pursuant to our independent director compensation plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation Table for Year Ended December&#160;31,
    2009</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the annual director compensation
    paid or accrued by us to individuals who were directors during
    any part of 2009. The table excludes Mr.&#160;Winn, who is our
    Chief Executive Officer and who did not receive any compensation
    from us in his role as director in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fees Earned or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Paid in Cash&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards
    ($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alfred R. Berkeley,&#160;III
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard M. Berkeley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peter Gyenes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    158,257
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    158,257
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey T. Leeds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jason A. Wright
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the aggregate grant date fair value computed in
    accordance with FASB ASC Topic 718. See Note&#160;8 of Notes to
    Consolidated Financial Statements for the year ended
    December&#160;31, 2009 for a discussion of assumptions made in
    determining the grant date fair value of our stock option awards.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects contingent grant to Mr.&#160;Gyenes of options to
    purchase 100,000&#160;shares of our common stock at an exercise
    price of $3.00 per share on December&#160;18, 2009. The
    contingencies of the grant were satisfied and the grant became
    effective on December&#160;29, 2009. This grant was subsequently
    cancelled and terminated and replaced by a grant to
    Mr.&#160;Gyenes of options to purchase 120,000&#160;shares of
    our common stock at an exercise price of $3.75 on
    February&#160;25, 2010. The aggregate grant date fair value of
    this subsequent grant computed in accordance with FASB ASC Topic
    718 is $222,414.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    96
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    COMPENSATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Discussion and Analysis</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following discussion and analysis of compensation
    arrangements of our principal executive officer, principal
    financial officer and each of the next three most highly
    compensated executive officers, referred to as our named
    executive officers, for our year ended December&#160;31, 2009
    should be read together with the compensation tables and related
    disclosures that follow this discussion.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Philosophy and Objectives</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our philosophy is to provide compensation to each of our named
    executive officers that is commensurate with his or her position
    and experience, furnish incentives sufficient for the named
    executive officer to meet and exceed short-term and long-term
    corporate objectives as determined by our board of directors and
    align the named executive officers&#146; incentives with the
    long-term interests of our stockholders. Additionally, our
    executive compensation program is intended to provide
    significant motivation for our named executive officers to
    remain employed by us unless and until our board of directors
    finds that retention of the named executive officer is no longer
    in accord with our corporate objectives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on this philosophy, the primary objectives of our board of
    directors and compensation committee with respect to executive
    compensation are to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    attract, retain and motivate skilled and knowledgeable executive
    talent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    ensure that executive compensation is aligned with our corporate
    strategies and business objectives;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    align the incentives of the named executive officers with the
    creation of value for stockholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To achieve these objectives, our compensation committee
    periodically evaluates our executive compensation program with
    the goal of establishing compensation at levels our compensation
    committee believes to be competitive with those of our
    competitive peer group companies and other companies in our
    geographical regions that compete with us for executive talent.
    Additionally, we design our executive compensation program to
    tie a portion of each named executive officer&#146;s overall
    cash compensation to key strategic, financial and operational
    goals set by our board of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Decision-Making Process</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee is responsible for overseeing and
    approving our executive compensation program. Our compensation
    committee currently consists of four members. The current
    members of our compensation committee are Jason A. Wright,
    Alfred R. Berkeley,&#160;III, Richard M. Berkeley and Peter
    Gyenes. Mr.&#160;Gyenes has been appointed to serve as the
    Chairman of our compensation committee. Our board of directors
    has determined that each member of our compensation committee is
    independent under the applicable requirements of NASDAQ and SEC
    rules and regulations, is a non-employee director, as defined by
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    promulgated under the Exchange Act and is an outside director,
    as defined pursuant to Section&#160;162(m) of the Internal
    Revenue Code of 1986, as amended. For a discussion of the
    specific responsibilities of our compensation committee, see
    &#147;Management&#160;&#151; Committees of the Board of
    Directors&#160;&#151; Compensation Committee.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Chief Executive Officer makes base salary, cash bonus and
    long-term incentive compensation recommendations to the
    compensation committee for each of our named executive officers
    based on his or her level of responsibility, performance and
    contribution to achieving our overall corporate objectives. Our
    compensation committee considers the Chief Executive
    Officer&#146;s input but retains complete authority to approve
    all compensation related decisions for our named executive
    officers. Additionally, our Chief Executive Officer is not
    permitted to be present during deliberations or voting by the
    compensation committee regarding his performance goals,
    performance evaluation or compensation level and abstains from
    voting in sessions where our board of directors acts on the
    compensation committee&#146;s recommendations regarding his
    compensation.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    97
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining compensation levels for our named
    executive officers, our compensation committee considers the
    recommendations of our Chief Executive Officer, our overall
    achievement of corporate objectives, the level of
    responsibility, performance and individual contributions of our
    named executive officers, each named executive officer&#146;s
    equity ownership and the compensation committee members&#146;
    own experience in compensation-related matters. For purposes of
    evaluating compensation levels for 2009 and 2010, our
    compensation committee also considered competitive market
    benchmarking data as described in &#147;Executive
    Compensation&#160;&#151; Competitive Positioning.&#148; Based on
    these considerations, our compensation committee approved
    compensation packages for each of our named executive officers
    in 2009 and 2010, the components of which are further described
    in &#147;Executive Compensation&#160;&#151; Compensation
    Components.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, our board of directors approved a new
    compensation committee charter in anticipation of our initial
    public offering, and our compensation committee approved 2010
    salaries for our named executive officers and our 2010
    Management Incentive Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Competitive
    Positioning</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee has the authority to engage outside
    consultants from time to time, as the committee sees fit, to
    conduct market reviews of our executive compensation program and
    philosophy in order to assess the competitiveness of our
    program. In the third quarter of 2008, our compensation
    committee engaged Mercer LLC, a wholly owned subsidiary of
    Marsh&#160;&#038; McLennan Companies, Inc., or Mercer, a global
    human resources and financial services consulting firm, to
    conduct an independent market review of our executive
    compensation program. To analyze our executive compensation
    program, Mercer used two public company market references to
    compare our total compensation practices for our executives to
    those in our market:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Publicly Held Companies Surveys.</I>&#160;&#160;Two private
    surveys regarding executive compensation in the technology
    industry, the Watson Wyatt Executive Compensation Survey and the
    Towers Perrin Executive Compensation Survey;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Select Peer Group.</I>&#160;&#160;Publicly available data for
    a competitive peer group of publicly traded on demand software
    and services companies of similar size experiencing rapid
    revenue growth comparable to ours with total employees in the
    range of 500 to 1,000, or the Select Peer Group.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Select Peer Group was developed in consultation between our
    compensation committee, our management team and Mercer and
    consisted of the following organizations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Blackboard Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    RightNow Technologies
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    DealerTrack Holdings, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    NetSuite Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kenexa Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Unica Corporation
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ultimate Software Group, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Callidus Software Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Omniture, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    athenahealth, Inc
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Concur Technologies, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    SuccessFactors, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Taleo Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Constant Contact, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SumTotal Systems, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    DemandTec, Inc.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mercer benchmarked our 2008 executive compensation levels,
    including base salaries, performance-based cash bonuses and
    long-term equity incentive awards, to those of other executives
    in the Select Peer Group where sufficient peer proxy data was
    available and against the Publicly Held Companies Surveys where
    insufficient peer proxy data was available and reported their
    findings to the compensation committee. The Mercer analysis
    indicated that the base salaries and the target
    performance-based cash bonuses of each of our named executive
    officers who were employed by us in 2008 were generally
    consistent with market median levels with the exception that our
    Chief Executive Officer&#146;s target performance-based cash
    bonus was in the 25th&#160;percentile. Additionally, the Mercer
    analysis indicated that our long-term equity incentive levels
    were below the 25th&#160;percentile.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    98
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009, our compensation committee did not engage outside
    consultants to conduct an independent market review of our
    executive compensation program. However, our Chief Executive
    Officer reviewed publicly available compensation data for the
    Select Peer Group. For purposes of evaluating compensation
    levels for 2009 and 2010, our compensation committee considered
    Mercer&#146;s analysis and our Chief Executive Officer&#146;s
    review of publicly available information for the Select Peer
    Group but did not target any specific percentile rank with
    respect to any of our compensation components in determining
    appropriate compensation levels for our named executive
    officers. In each of 2009 and 2010, this competitive market
    benchmarking data was one of many factors considered by our
    compensation committee in determining appropriate compensation
    levels for our named executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Components</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Base
    Salaries</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Base salaries are used to recognize the experience, skills,
    knowledge and responsibilities required of all our named
    executive officers. Base salaries for our named executive
    officers have typically been negotiated as a part of the
    employment agreements with our named executive officers at the
    outset of employment. However, from time to time, at the
    discretion of our compensation committee and consistent with our
    executive compensation program objectives, base salaries for our
    named executive officers, together with other components of
    compensation, are evaluated for adjustment based on an
    assessment of the overall achievement of corporate objectives,
    each named executive officer&#146;s sustained performance and
    compensation trends in our industry. Each named executive
    officer&#146;s employment agreement requires that his or her
    base salary be reviewed no less frequently than annually;
    however, none of our named executive officers has an employment
    agreement that provides for automatic or scheduled increases in
    base salary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December&#160;2008, our compensation committee conducted a
    review of our executive compensation program for purposes of
    evaluating compensation levels for our executives for 2009.
    Based on the considerations described above in &#147;Executive
    Compensation&#160;&#151; Compensation Decision-Making
    Process,&#148; our compensation committee approved base salary
    increases to be effective as of January&#160;1, 2009 for each of
    our named executive officers except for our Chief Executive
    Officer. The percentage increase for each named executive
    officer was based on our compensation committee&#146;s
    assessment of the various considerations described above. In the
    case of Mr.&#160;Wakeham and Ms.&#160;Chaffin Glover, the
    increase in base salary was primarily due to the named executive
    officers&#146; increased responsibilities associated with
    promotions. Our compensation committee did not increase our
    Chief Executive Officer&#146;s base salary for 2009 because of
    the substantial incentive provided by our Chief Executive
    Officer&#146;s significant ownership of our common stock. The
    table below shows base salaries for our named executive officers
    for 2008 and 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="33%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2008 Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009 Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Named Executive Officer</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Current Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Increase</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Executive Officer, Chairman of the Board
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    400,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    400,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer and Treasurer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    285,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    315,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10.5
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    President<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    250,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    260,000
</TD>
<TD nowrap align="left" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4.0
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Executive Vice President, Multifamily
    Solutions<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    220,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    260,000
</TD>
<TD nowrap align="left" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    18.2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E.
    Van&#160;Valkenberg<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Legal Officer and Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    300,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects base salary at end of 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects base salary at beginning of 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wakeham assumed the title and responsibilities of
    President in January 2010. He served as our Executive Vice
    President, Property Solutions, from April 2009 to January 2010
    and as our Senior Vice President, President, LeasingDesk Risk
    Mitigation Systems, for prior periods in 2009.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    99
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wakeham&#146;s salary was increased from $260,000 to
    $300,000 effective April&#160;1, 2009 in connection with his
    promotion to Executive Vice President, Property Solutions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Chaffin Glover assumed the title and responsibilities
    of Executive Vice President, Multifamily Solutions in January
    2010. She served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior Vice
    President, President, Velocity Utility and Billing Services, for
    prior periods in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Chaffin Glover&#146;s salary was increased from
    $260,000 to $300,000 effective April&#160;1, 2009 in connection
    with her promotion to Executive Vice President, Resident
    Solutions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Van&#160;Valkenberg commenced his employment with us in
    September 2009 after providing consulting services to us from
    June 2009 to September 2009.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, our compensation committee conducted a review
    of our executive compensation program for purposes of evaluating
    compensation levels for our executives for 2010. Based on the
    considerations described above in &#147;Executive
    Compensation&#160;&#151; Compensation Decision-Making
    Process,&#148; our compensation committee approved base salary
    increases to be effective as of January&#160;1, 2010 for each of
    our named executive officers except for our Chief Executive
    Officer. The percentage increase for each named executive
    officer was based on our compensation committee&#146;s
    assessment of the various considerations described above. In the
    case of Mr.&#160;Wakeham and Ms.&#160;Chaffin Glover, the
    increase in base salary was primarily due to the named executive
    officers&#146; increased responsibilities associated with
    promotions. Our compensation committee again did not increase
    our Chief Executive Officer&#146;s base salary for 2010 because
    of the substantial incentive provided by our Chief Executive
    Officer&#146;s significant ownership of our common stock. The
    table below shows base salaries for our named executive officers
    for fiscal 2009 and 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="33%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009 Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2010 Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Named Executive Officer</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Increase</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Executive Officer, Chairman of the&#160;Board
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    400,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    400,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer and Treasurer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    315,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    350,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11.1
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    President<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    300,000
</TD>
<TD nowrap align="left" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    330,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10.0
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Executive Vice President, Multifamily
    Solutions<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    300,000
</TD>
<TD nowrap align="left" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    320,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6.7
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E.
    Van&#160;Valkenberg<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Legal Officer and Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    300,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    300,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects base salary at the end of 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects base salary at beginning of 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wakeham assumed the title and responsibilities of
    President in January 2010. He served as our Executive Vice
    President, Property Solutions, from April 2009 to January 2010
    and as our Senior Vice President, President, LeasingDesk Risk
    Mitigation Systems, for prior periods in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wakeham&#146;s salary was increased from $260,000 to
    $300,000 effective April&#160;1, 2009 in connection with his
    promotion to Executive Vice President, Property Solutions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Chaffin Glover assumed the title and responsibilities
    of Executive Vice President, Multifamily Solutions in January
    2010. She served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior Vice
    President, President, Velocity Utility and Billing Services, for
    prior periods in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Chaffin Glover&#146;s salary was increased from
    $260,000 to $300,000 effective April&#160;1, 2009 in connection
    with her promotion to Executive Vice President, Resident
    Solutions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Van Valkenberg commenced his employment with us in
    September 2009 after providing consulting services to us from
    June 2009 to September 2009.</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    100
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Performance-Based
    Cash Bonuses</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our named executive officers participate in our annual
    non-equity management incentive plan, or management incentive
    plan, along with our other senior managers. Our annual
    management incentive plan is intended to provide cash
    compensation to our named executive officers and senior managers
    for their contribution to the achievement of our strategic,
    operational and financial objectives. Our named executive
    officers earn amounts under our management incentive plan based
    on our achievement of financial performance objectives,
    including overall corporate revenue and adjusted EBITDA targets
    and product family specific revenue and profit targets for those
    participants of our management incentive plan that have direct
    responsibility over the operations specific to one of our
    product families, and an assessment of the named executive
    officer&#146;s individual performance. For purposes of the
    management incentive plan, adjusted EBITDA is calculated the
    same as Adjusted EBITDA as described in footnote&#160;5 to the
    table in &#147;Selected Consolidated Financial Data&#148; except
    that purchase accounting adjustments are also added back. Our
    compensation committee approves a management incentive plan each
    year that outlines overall corporate objectives for the fiscal
    year in addition to establishing guidelines for calculating
    management incentive plan bonuses in the event that performance
    objectives are partially achieved or exceeded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A portion of our management incentive plan bonuses are typically
    paid out quarterly based on progression towards the annual
    achievement of performance objectives. The actual annual cash
    bonus paid to participants under our management incentive plan
    with respect to a particular fiscal year is adjusted at year end
    based on actual achievement of both financial and individual
    performance objectives. We do not have any formal or informal
    policies regarding the adjustment or recovery of bonus payments
    made under the management incentive plan in the event a relevant
    performance objective upon which the payment was made is not
    ultimately achieved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the management incentive plan for 2009, or the 2009
    Management Incentive Plan, the target bonus for Mr.&#160;Winn
    was 75% of Mr.&#160;Winn&#146;s base salary with a maximum bonus
    potential of 200% of Mr.&#160;Winn&#146;s target bonus for
    achieving financial and individual performance objectives in
    excess of the targets and a minimum bonus potential of 0% of
    Mr.&#160;Winn&#146;s target bonus. The 2009 Management Incentive
    Plan target bonus for each other named executive officer was 50%
    of the named executive officer&#146;s base salary with a maximum
    bonus potential of 200% of the named executive officer&#146;s
    target bonus for achieving financial and individual performance
    objectives in excess of the targets and a minimum bonus
    potential of 0% of the named executive officer&#146;s target
    bonus. Our 2009 revenue target was approximately 30% higher than
    our 2008 target while our 2009 adjusted EBITDA target was
    approximately 100% higher than our 2008 target. The compensation
    committee believed that the 2009 targets were challenging, but
    attainable, based on the increases in our revenue and adjusted
    EBITDA in 2008 relative to 2007 and directly aligned our named
    executive officers&#146; short-term incentives with the creation
    of long-term stockholder value. Our compensation committee had
    sole discretion to adjust targets and awards under the 2009
    Management Incentive Plan for significant, non-controllable
    circumstances that were not included in our 2009 operating plan;
    however, our compensation committee did not exercise such
    discretion under the 2009 Management Incentive Plan. For each of
    Messrs.&#160;Winn, Barker and Van Valkenberg, the achievement of
    2009 bonus targets for overall corporate revenue, overall
    corporate adjusted EBITDA and individual performance ratings
    were weighted 30%, 45% and 25%, respectively. We weighted the
    individual 2009 Management Incentive Plans more heavily toward
    achieving adjusted EBITDA over revenue targets for
    Messrs.&#160;Winn, Barker and Van Valkenberg because we believe
    that increases in adjusted EBITDA will drive our long-term
    success and result in greater opportunity for profit in the
    future. For Ms.&#160;Chaffin Glover and Mr.&#160;Wakeham, the
    achievement of 2009 Management Incentive Plan bonus targets for
    revenue, adjusted EBITDA and individual performance ratings were
    weighted 50% (of which, 15% was based on overall corporate
    performance and 35% was based on the performance of operations
    under the named executive officers&#146; direct management), 25%
    (of which, 10% was based on overall corporate performance and
    15% was based on the performance of operations under the named
    executive officers&#146; direct management) and 25%,
    respectively. We weighted the individual 2009 Management
    Incentive Plans for Ms.&#160;Chaffin Glover and Mr.&#160;Wakeham
    more heavily toward achieving revenue over adjusted EBITDA
    because we believe that the positions held by Ms.&#160;Chaffin
    Glover and Mr.&#160;Wakeham have more direct influence over
    revenue performance than our other named executive officers.
    Additionally, we weighted
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    101
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the performance of the operations under these named executive
    officers&#146; direct management over our overall corporate
    performance in order to motivate and incentivize the named
    executive officers to drive growth in operations under their
    direct management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the actual bonuses paid to our
    named executive officers pursuant to the 2009 Management
    Incentive Plan based on achievement of 2009 performance
    objectives as compared to each named executive officer&#146;s
    target bonuses:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Actual Bonus as<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Actual<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>a Percent of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Executive</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bonus&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bonus&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target Bonus</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    246,765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    157,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131,585
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120,335
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E.
    Van&#160;Valkenberg<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,685
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Van&#160;Valkenberg commenced his employment with us in
    September 2009. Mr.&#160;Van Valkenberg&#146;s annual bonus
    opportunity under the 2009 Management Incentive Plan was subject
    to proration based on the actual number of days he was employed
    by us during 2009.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Management Incentive Plan for 2010, or the 2010 Management
    Incentive Plan, was approved by our compensation committee in
    February 2010. The 2010 Management Incentive Plan target bonus
    for Mr.&#160;Winn is 100% of Mr.&#160;Winn&#146;s base salary
    with a maximum bonus potential of 200% of Mr.&#160;Winn&#146;s
    target bonus for achieving financial and individual performance
    objectives in excess of the targets and a minimum bonus
    potential of 0% of Mr.&#160;Winn&#146;s target bonus. The 2010
    Management Incentive Plan target bonus for Ms.&#160;Chaffin
    Glover and Messrs.&#160;Barker and Van&#160;Valkenberg is 50% of
    the named executive officer&#146;s base salary with a maximum
    bonus potential of 200% of the named executive officer&#146;s
    target bonus for achieving financial and individual performance
    objectives in excess of the targets and a minimum bonus
    potential of 0% of the named executive officer&#146;s target
    bonus. The 2010 Management Incentive Plan target bonus for
    Mr.&#160;Wakeham is 62.5% of Mr.&#160;Wakeham&#146;s base salary
    with a maximum bonus potential of 200% of
    Mr.&#160;Wakeham&#146;s target bonus for achieving financial and
    individual performance objectives in excess of the targets and a
    minimum bonus potential of 0% of Mr.&#160;Wakeham&#146;s target
    bonus. The performance metrics under the 2010 Management
    Incentive Plan are the same as the performance metrics under our
    2009 Management Incentive Plan and include revenue and adjusted
    EBITDA targets and individual performance ratings. The
    compensation committee believes that the 2010 targets are
    challenging, but attainable, based on the increases in our
    revenue and adjusted EBITDA in 2009 relative to 2008 and will
    continue to align our named executive officers&#146; short-term
    incentives with the creation of long-term stockholder value. For
    each of Messrs.&#160;Winn, Barker and Van Valkenberg, the
    achievement of 2010 bonus targets for overall corporate revenue,
    overall corporate adjusted EBITDA and individual performance
    ratings are weighted 30%, 45% and 25%, respectively. We weighted
    the individual 2010 Management Incentive Plans more heavily
    toward achieving adjusted EBITDA over revenue targets for
    Messrs.&#160;Winn, Barker and Van Valkenberg because we believe
    that increases in adjusted EBITDA will drive our long-term
    success and result in greater opportunity for profit in the
    future. For Mr.&#160;Wakeham, the achievement of 2010 bonus
    targets for overall corporate revenue, overall corporate
    adjusted EBITDA and individual performance ratings are weighted
    45%, 30% and 25%, respectively. For Ms.&#160;Chaffin Glover, the
    achievement of 2010 Management Incentive Plan bonus targets for
    revenue, adjusted EBITDA and individual performance ratings are
    weighted 50% (of which, 15% was based on overall corporate
    performance and 35% was based on the performance of operations
    under the named executive officers&#146; direct management), 25%
    (of which, 10% was based on overall corporate performance and
    15% was based on the performance of operations under the named
    executive officers&#146; direct management) and 25%,
    respectively. We weighted the individual 2010 Management
    Incentive Plan for Mr.&#160;Wakeham and Ms.&#160;Chaffin Glover
    more heavily toward achieving revenue over adjusted EBITDA
    because we believe that the positions held by these named
    executive officers have more direct influence over revenue
    performance than our other named executive officers.
    Additionally, we weighted the performance of the operations
    under Ms.&#160;Chaffin Glover&#146;s direct management over our
</DIV>
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    102
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    overall corporate performance in order to motivate and
    incentivize Ms.&#160;Chaffin Glover to drive growth in
    operations under her direct management. Our compensation
    committee retains sole discretion to adjust targets and awards
    under the 2010 Management Incentive Plan for significant,
    non-controllable circumstances that were not included in our
    2010 operating budget.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Equity
    Incentive Awards</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our equity award program is the primary vehicle for offering
    long-term incentives to our named executive officers.
    Historically, our equity awards to our named executive officers
    have been in the form of stock options. We believe that
    equity-based compensation provides our named executive officers
    with a direct interest in our long-term performance, creates an
    ownership culture and aligns the interests of our named
    executive officers and our stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grants of stock option awards, including those to our named
    executive officers, are all approved by our compensation
    committee and are granted at an exercise price at or above the
    fair market value of our common stock on the date of grant.
    Consistent with the terms of our options granted to our other
    employees, options granted to our named executive officers
    typically vest over a four-year period in accordance with one of
    the following vesting schedules, subject to continued service
    through each applicable vesting date:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The stock option vests in equal quarterly installments over
    16&#160;consecutive quarters commencing on the first day of the
    calendar quarter immediately following the grant date;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The stock option vests with respect to 5% of the shares subject
    to the stock option each quarter commencing on the first day of
    the calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the four-year vesting period of our stock option
    grants furthers our objective of executive retention as it
    provides an incentive to our executives to remain in our employ
    during the vesting period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We typically make an initial stock option grant to new
    executives in connection with the commencement of his or her
    employment. Additionally, at the discretion of our board of
    directors and consistent with our executive compensation program
    objectives, our compensation committee typically evaluates and
    approves equity awards for our new employees quarterly and
    equity awards for our existing employees, including our named
    executive officers, annually, to re-establish or bolster
    incentives to retain our employees. The stock options we granted
    to our named executive officers in 2009 are set forth under
    &#147;Executive Compensation&#160;&#151; Grants of Plan-Based
    Awards.&#148; On February&#160;25, 2010, we granted options to
    purchase 350,000, 225,000 and 300,000&#160;shares of our common
    stock to Mr. Barker, Ms. Chaffin Glover and Mr. Wakeham,
    respectively, at an exercise price per share of $3.75. These
    stock options vest with respect to 5% of the shares subject to
    the stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date. In determining the size of stock
    option grants to our named executive officers in 2009 and 2010,
    our compensation committee considered comparative equity
    ownership of executives employed by companies in our Select Peer
    Group, our overall achievement of corporate objectives, the
    applicable named executive officer&#146;s achievement of
    individual performance objectives, the achievement of certain
    strategic initiatives, the amount of equity previously awarded
    to the named executive officer, the vesting of previous awards
    and the recommendations of our Chief Executive Officer.
    Mr.&#160;Van Valkenberg was not granted stock options or other
    equity awards in 2010, as he had recently been granted an option
    to purchase 300,000&#160;shares of our common stock upon the
    commencement of his full-time employment with us in September
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Winn, our Chief Executive Officer, has not received
    equity based compensation historically. Mr.&#160;Winn&#146;s
    primary equity compensation continues to come from expected
    returns on his ownership of our stock. As a significant
    stockholder, Mr.&#160;Winn&#146;s personal wealth is tied
    directly to sustaining stock price appreciation and performance,
    which directly aligns Mr.&#160;Winn&#146;s interests with
    overall stockholder interests.
</DIV>
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    <BR>
    103
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the discretion of our compensation committee, we expect to
    continue to grant new stock options to named executive officers
    annually consistent with our overall executive compensation
    program objectives. In determining the size of stock option
    grants to named executive officers in future years, we expect
    that our compensation committee will consider comparative equity
    ownership of executives employed by companies in our Select Peer
    Group, our financial performance, the applicable named executive
    officer&#146;s achievement of performance objectives, the amount
    of equity compensation previously awarded to the named executive
    officer, the vesting of previous awards and the recommendations
    of our Chief Executive Officer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Severance
    and Change in Control Benefits</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our employment agreements with our named executive officers
    provide for payments and other benefits in the event of
    termination of employment in certain circumstances. For a
    description of these payments and other benefits, see
    &#147;Executive Compensation&#160;&#151; Potential Payments on
    Termination or Change in Control.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our 1998 Stock Incentive Plan provides that stock options
    granted to a participant under our 1998 Stock Incentive Plan
    will become 100% vested on the participant&#146;s death or
    disability (as defined in Section&#160;22(e)(3) of the Internal
    Revenue Code) unless the stock option agreement provides
    otherwise. Each of the outstanding stock options granted to our
    named executive officers has been granted under our 1998 Stock
    Incentive Plan and would be subject to this acceleration benefit
    in the event of the named executive officer&#146;s death or
    disability. We generally do not provide for accelerated vesting
    of options held by our employees or named executive officers in
    connection with change in control transactions. However, our
    stock option agreements with Mr.&#160;Barker provide for
    accelerated vesting in connection with certain change in control
    transactions as further described under &#147;Executive
    Compensation&#160;&#151; Potential Payments on Termination or
    Change in Control&#160;&#151; Arrangements with Timothy J.
    Barker.&#148; Our compensation committee determined that it was
    appropriate to provide for payments and accelerated vesting for
    Mr.&#160;Barker, but not our other named executive officers, in
    connection with certain change in control transactions because
    the position of Chief Financial Officer is more likely to be
    affected by such a transaction than the positions held by our
    other named executive officers (other than Chief Executive
    Officer). However, our compensation committee did not believe it
    was necessary to provide for additional payments to
    Mr.&#160;Winn in the event of certain change in control
    transactions given his significant ownership of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that these severance arrangements help us to attract
    and retain key management talent in an industry where there is
    significant competition for management talent. We believe that
    entering into these agreements helps the named executive
    officers maintain continued focus and dedication to their
    assigned duties and maximizes stockholder value. The terms of
    these agreements were determined after review by our
    compensation committee of our retention goals for each named
    executive officer, as well as analysis of market data, similar
    agreements established by our Select Peer Group and applicable
    law.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Benefits
    and Other Compensation</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain broad-based employee benefit plans, which are
    provided to all eligible U.S.-based employees. These plans
    include a group medical program, a group dental program, life
    insurance, disability insurance, flexible spending accounts and
    a 401(k) savings plan. Other benefit programs offered to all
    full-time U.S.-based employees include programs for job-related
    educational assistance, an employee referral program, group term
    life insurance equivalent to 1.5 times an employee&#146;s annual
    base salary up to a $600,000 maximum and an employee assistance
    program. All U.S.-based executives are eligible to participate
    in our employee benefit plans on the same basis as our other
    full-time employees, with the exception of the employee referral
    program, in which our named executive officers are ineligible to
    participate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe these benefits are consistent with the benefits
    offered by companies with which we compete for employees and are
    necessary to attract and retain qualified employees.
</DIV>
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    <BR>
    104
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Perquisites</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that cash and equity compensation are the two key
    components in attracting and retaining management talent and
    therefore do not generally provide any substantial perquisites
    to our named executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Tax and
    Accounting Considerations</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;162(m) of the Internal Revenue Code generally
    disallows a tax deduction for certain compensation in excess of
    $1.0&#160;million per year paid by a publicly held company to
    its chief executive officer or any of its three other most
    highly paid executive officers (other than the company&#146;s
    chief executive officer and chief financial officer). Qualifying
    performance-based compensation is not subject to the deduction
    limitation if specified requirements are met. In addition,
    &#147;grandfather&#148; provisions may apply to certain
    compensation arrangements that were entered into by a company
    before it was publicly held. We generally intend to structure
    the performance-based portion of our executive compensation,
    when feasible, to comply with exemptions in Section&#160;162(m)
    so that the compensation remains tax deductible to us. However,
    to remain competitive with other employers, our compensation
    committee may, in its judgment, authorize compensation payments
    that do not comply with the exemptions in Section&#160;162(m)
    when it believes that such payments are appropriate to attract
    and retain executive talent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information regarding the
    compensation of our named executive officers during our year
    ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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&nbsp;
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&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
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&nbsp;
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Principal Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bonus&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)<SUP style="font-size: 85%; vertical-align: top">(3)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    246,765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    650,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Chairman of the Board and Chief Executive Officer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    315,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    320,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    788,546
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Chief Financial Officer and Treasurer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D.
    Wakeham<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    290,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    256,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131,585
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,853
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    729,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>President</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin
    Glover<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    290,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    256,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120,335
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    670,515
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Executive Vice President, Multifamily Solutions</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. Van
    Valkenberg<SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79,615
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    372,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96,338
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(10)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    583,557
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Chief Legal Officer and Secretary</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the aggregate grant date fair value computed in
    accordance with FASB ASC Topic 718. See Note&#160;8 of Notes to
    Consolidated Financial Statements for the year ended
    December&#160;31, 2009 for a discussion of assumptions made in
    determining the grant date fair value of our stock option awards.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents awards under our 2009 Management Incentive Plan. The
    material terms of these annual incentive awards are described in
    this section under &#147;Compensation Discussion and
    Analysis&#160;&#151; Compensation Components&#160;&#151;
    Performance-Based Bonuses.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the amount of our matching contributions under our
    401(k) savings plan unless additional forms of other
    compensation are also indicated in relevant footnotes to this
    table.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wakeham assumed the title and responsibilities of
    President in January 2010. He served as our Executive Vice
    President, Property Solutions, from April 2009 to January 2010
    and as our Senior Vice President, President, LeasingDesk Point
    of Lease Systems, for prior periods in 2009.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    105
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wakeham&#146;s salary was increased from $260,000 to
    $300,000 in April 2009 in conjunction with his promotion to
    Executive Vice President, Property Solutions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;$1,304 of matching contributions under our
    401(k) savings plan, (ii)&#160;$43,510 of relocation related
    expense reimbursements and (iii)&#160;tax gross-up of $7,039
    associated with taxable relocation related expenses.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Chaffin Glover assumed the title and responsibilities
    of Executive Vice President, Multifamily Solutions in January
    2010. She served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior Vice
    President, President, Velocity Utility and Billing Services, for
    prior periods in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Chaffin Glover&#146;s salary was increased from
    $260,000 to $300,000 in April 2009 in conjunction with her
    promotion to Executive Vice President, Resident Solutions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Van Valkenberg commenced his employment with us in
    September 2009 and provided consulting services to us from June
    2009 to September 2009. His 2009 compensation represents the
    amounts paid to him as an employee from September&#160;24, 2009
    to December&#160;31, 2009 and as a consultant for prior periods
    in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;$125 of matching contributions under our
    401(k) savings plan, (ii)&#160;$7,742 of relocation related
    expense reimbursements, (iii)&#160;tax gross-up of $3,753
    associated with taxable relocation related expenses,
    (iv)&#160;$65,000 in consulting payments paid to
    Mr.&#160;Van&#160;Valkenberg in accordance with the terms of his
    consulting agreement prior to commencement of his full-time
    employment with us and (v)&#160;$19,717 in expense
    reimbursements paid to Mr.&#160;Van&#160;Valkenberg in
    accordance with the terms of his consulting agreement prior to
    commencement of his full-time employment with us.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grants of
    Plan-Based Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding grants of
    compensation in the form of plan-based awards made during 2009
    to our named executive officers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Grant Date<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Estimated Future Payouts Under<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise or Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fair Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Non-Equity Incentive Plan Awards
    ($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price of Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Grant Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Minimum</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Maximum</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards
    ($/Sh)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards
    ($)<SUP style="font-size: 85%; vertical-align: top">(3)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    320,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    157,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    315,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    256,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    256,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2/26/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. Van Valkenberg
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9/28/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    372,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9/24/2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,685
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents awards under our Management Incentive Plan for fiscal
    2009. The material terms of these annual incentive awards are
    discussed in this section under &#147;Compensation Discussion
    and Analysis&#160;&#151; Compensation Components&#160;&#151;
    Performance-Based Bonuses.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    In determining the exercise price of options granted in 2009,
    our compensation committee retained an independent valuation
    firm to complete a contemporaneous common stock valuation using
    the probability-weighted expected return method, which involved
    analyzing future values under two possible outcomes and then
    probability-weighting those values.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects the aggregate grant date fair value computed in
    accordance with FASB ASC Topic 718. See Note&#160;8 of Notes to
    Consolidated Financial Statements for the year ended
    December&#160;31, 2009 for a discussion of assumptions made in
    determining the grant date fair value of our stock option awards.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    106
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Stock options vest in equal quarterly installments over 16
    consecutive quarters commencing on the first day of the calendar
    quarter immediately following the grant date, subject to
    continued service through each applicable date.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Stock option vests with respect to 5% of the shares subject to
    the stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Outstanding
    Equity Awards at December&#160;31, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding equity
    awards held by our named executive officers as of
    December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=05 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=05 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option Awards</B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exercised Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>That Have Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercisable&#160;(#)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Vested&#160;(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Price&#160;($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Expiration Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Chairman of the Board and Chief<BR>
    Executive Officer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    250,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $1.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10/27/2015
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Chief Financial Officer and Treasurer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    75,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    25,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $1.25
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12/15/2016
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65,625
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    84,375
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.50
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2/29/2018
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    46,875
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    203,125
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2/26/2019
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    156,250
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    93,750
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $1.50
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4/12/2017
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>President</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65,625
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    84,375
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.50
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2/29/2018
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    37,500
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    162,500
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2/26/2019
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    200,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $1.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3/3/2015
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Executive Vice President, Multifamily</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    50,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $1.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12/13/2015
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <I>Solutions</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    37,500
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12,500
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $1.25
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12/15/2016
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    43,750
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    56,250
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.50
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2/29/2018
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    37,500
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    162,500
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2/26/2019
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. Van Valkenberg
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    15,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    285,000
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $3.00
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9/28/2019
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Chief Legal Officer and Secretary </I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The listed stock options were granted under our 1998 Stock
    Incentive Plan. Stock options granted to Ms.&#160;Chaffin Glover
    and Messrs.&#160;Barker and Wakeham vest ratably over 16
    quarters commencing on the first day of the calendar quarter
    immediately following the grant date, subject to continued
    service through each applicable vesting date, and the stock
    option granted to Mr.&#160;Van Valkenberg vests with respect to
    5% of the shares subject to the stock option each quarter
    commencing on the first day of the calendar quarter immediately
    following the grant date for 15 consecutive quarters and the
    remaining 25% of the on the first day of the next following
    calendar quarter, subject to continued service through each
    applicable date.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option
    Exercises and Stock Vested</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of our named executive officers exercised their outstanding
    stock options during 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pension
    Benefits and Nonqualified Deferred Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not provide a pension plan for our employees and none of
    our named executive officers participated in a nonqualified
    deferred compensation plan during the year ended
    December&#160;31, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    107
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following descriptions of the terms of the employment
    agreements with our named executive officers are intended as a
    summary only and are qualified in their entirety by reference to
    the employment agreements filed as exhibits to the registration
    statement of which this prospectus is a part.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stephen
    T. Winn</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into an employment agreement with Stephen T. Winn,
    our Chief Executive Officer and Chairman of the Board, on
    December&#160;30, 2003. The employment agreement with
    Mr.&#160;Winn provides for a base salary at a rate not less than
    $265,000 per year until December&#160;31, 2003 and thereafter at
    a rate not less than $275,000 per year with a target annual
    bonus of not less than 50% of his base salary and a potential
    maximum annual bonus of up to 100% of his base salary based on
    the achievement of performance criteria established by our
    compensation committee. Mr.&#160;Winn&#146;s current base salary
    is $400,000 and target annual bonus is 100% of his annual base
    salary with a potential maximum annual bonus of up to 200% of
    his annual base salary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Winn is entitled to four weeks paid vacation per year,
    is eligible to participate in all employee welfare benefits
    plans and other benefit programs made available generally to our
    employees or senior executives and is reimbursed for all
    reasonable business expenses including travel by private
    aircraft for business purposes of up to $150,000 per year.
    Additionally, we will make available to Mr.&#160;Winn all fringe
    benefits and perquisites that are made available to other senior
    executives. As part of his employment, Mr.&#160;Winn is entitled
    to payments upon termination of his employment in certain
    circumstances as described below under &#147;Executive
    Compensation&#160;&#151; Potential Payments Upon Termination or
    Change in Control&#160;&#151; Arrangements with Stephen T.
    Winn.&#148; Our employment agreement with Mr.&#160;Winn, among
    other things, also includes confidentiality provisions and
    non-competition, non-interference and non-disparagement
    obligations during his employment and for a three-year period
    following termination.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Timothy
    J. Barker</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into an employment agreement with Timothy J. Barker,
    our Chief Financial Officer and Treasurer, on October&#160;31,
    2005. On October&#160;27, 2005, in accordance with the terms of
    his employment agreement, Mr.&#160;Barker was granted an option
    to purchase 500,000&#160;shares of our common stock at an
    exercise price of $1.00. The stock option vests in equal
    quarterly installments over 16&#160;consecutive quarters
    commencing on the first day of the calendar quarter immediately
    following the grant date, subject to continued service through
    each applicable date. We subsequently amended the employment
    agreement with Mr.&#160;Barker on January&#160;1, 2010. As
    amended, the employment agreement with Mr.&#160;Barker provides
    for a base salary at a rate not less than $350,000 per year
    effective January&#160;1, 2010. Under the terms of his amended
    employment agreement, Mr.&#160;Barker is eligible to receive a
    target annual bonus of 50% of his base salary and a potential
    maximum annual bonus of up to 100% of his base salary based on
    the achievement of performance criteria established by our
    compensation committee. Mr.&#160;Barker&#146;s current base
    salary is $350,000 and target annual bonus is 50% of his annual
    base salary with a potential maximum annual bonus of up to 100%
    of his annual base salary. On February&#160;25, 2010, in
    accordance with the terms of his amended employment agreement,
    Mr.&#160;Barker was granted an option to purchase 350,000 shares
    of our common stock at an exercise price of $3.75. The stock
    option vests with respect to 5% of the shares subject to the
    stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to
    Mr.&#160;Barker&#146;s continued service through each applicable
    date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Barker is entitled to three weeks paid vacation per
    year, is eligible to participate in all employee welfare
    benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Mr.&#160;Barker all fringe benefits
    and perquisites that are made available to other senior
    executives. As part of his employment, Mr.&#160;Barker is also
    entitled to payments and other benefits upon termination of his
    employment in certain circumstances, and our stock option
    agreements with Mr.&#160;Barker provide for accelerated vesting
    in
</DIV>
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    108
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    connection with certain change in control transactions, as
    described below under &#147;Executive Compensation&#160;&#151;
    Potential Payments Upon Termination or Change in
    Control&#160;&#151; Arrangements with Timothy J. Barker.&#148;
    Our amended employment agreement with Mr.&#160;Barker, among
    other things, also includes confidentiality provisions and
    non-competition, non-interference and non-disparagement
    obligations during his employment and for a one-year period
    following termination.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dirk
    D. Wakeham</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Multifamily Internet Ventures, LLC, which we acquired in
    April&#160;2007, entered into an employment agreement with Dirk
    D. Wakeham, which was subsequently amended on April&#160;12,
    2007. Mr. Wakeham has served as our President since January
    2010. As amended, the employment agreement with Mr.&#160;Wakeham
    provides for a base salary at a rate not less than $225,000 per
    year. Under the terms of his amended employment agreement,
    beginning in 2007, Mr.&#160;Wakeham is eligible to receive an
    annual bonus under the terms of our management incentive plan of
    50% of his base salary for achievement of the management
    incentive plan at 100% and the potential to receive up to 100%
    of his base salary if the performance criteria stipulated in the
    management incentive plan is exceeded. Mr.&#160;Wakeham&#146;s
    current base salary is $330,000 and target annual bonus is 62.5%
    of his annual base salary with a potential maximum annual bonus
    of up to 125% of his annual base salary. In addition,
    Mr.&#160;Wakeham received a one-time lump sum payment of $14,700
    following the closing of our acquisition of Multifamily Internet
    Ventures, LLC, which amount represented the difference between
    the amount he was paid by Multifamily Internet Ventures, LLC,
    for the period from January&#160;1, 2007 and April&#160;12, 2007
    and the amount he would have been paid during such period if he
    had been paid at the base salary specified in his employment
    agreement. On April&#160;12, 2007, in accordance with the terms
    of his employment agreement, Mr.&#160;Wakeham was granted an
    option to purchase 250,000&#160;shares of our common stock at an
    exercise price of $1.50. The stock option vests in equal
    quarterly installments over 16&#160;consecutive quarters
    commencing on the first day of the calendar quarter immediately
    following the grant date, subject to continued service through
    each applicable date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Wakeham is entitled to three weeks paid vacation per
    year, is eligible to participate in all employee welfare
    benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Mr.&#160;Wakeham all fringe benefits
    and perquisites that are made available to other senior
    executives. As part of his employment, Mr.&#160;Wakeham is also
    entitled to certain payments upon termination of his employment
    in certain circumstances as described below under
    &#147;Executive Compensation&#160;&#151; Potential Payments Upon
    Termination or Change in Control&#160;&#151; Arrangements with
    Our Other Named Executive Officers.&#148; Our employment
    agreement with Mr.&#160;Wakeham, among other things, also
    includes confidentiality provisions and non-interference and
    non-disparagement obligations during his employment and for a
    period of 24&#160;months following termination.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Ashley
    Chaffin Glover</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into an employment agreement with Ashley Chaffin
    Glover on March&#160;3, 2005. Ms. Chaffin Glover has served as
    our Executive Vice President, Multifamily Solutions since
    January 2010. The employment agreement with Ms.&#160;Chaffin
    Glover provides for a base salary at a rate not less than
    $150,000 per year. Under the terms of her employment agreement,
    beginning in 2005, Ms.&#160;Chaffin Glover is eligible to
    receive a target annual bonus of 40% of her base salary and a
    potential maximum annual bonus of up to 80% of her base salary
    based on the achievement of performance criteria established by
    our compensation committee. Ms.&#160;Chaffin Glover&#146;s
    annual bonus opportunity for 2005 was prorated for the portion
    of 2005 that she was employed by us. Ms.&#160;Chaffin
    Glover&#146;s current base salary is $320,000 and target annual
    bonus is 50% of her annual base salary with a potential maximum
    annual bonus of up to 100% of her annual base salary. On
    March&#160;3, 2005, in accordance with the terms of her
    employment agreement, Ms.&#160;Chaffin Glover was granted an
    option to purchase 200,000&#160;shares of our common stock at an
    exercise price of $1.00. The stock option vests in equal
    quarterly installments over 16&#160;consecutive quarters
    commencing on the first day of the calendar quarter immediately
    following the grant date, subject to continued service through
    each applicable date.
</DIV>
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    <BR>
    109
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ms.&#160;Chaffin Glover is entitled to three weeks paid vacation
    per year, is eligible to participate in all employee welfare
    benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Ms.&#160;Chaffin Glover all fringe
    benefits and perquisites that are made available to other senior
    executives. As part of her employment, Ms.&#160;Chaffin Glover
    is also entitled to certain payments upon termination of her
    employment in certain circumstances as described below under
    &#147;Executive Compensation&#160;&#151; Potential Payments Upon
    Termination or Change in Control&#160;&#151; Arrangements with
    Our Other Named Executive Officers.&#148; Our employment
    agreement with Ms.&#160;Chaffin Glover, among other things, also
    includes confidentiality provisions and non-competition,
    non-interference and non-disparagement obligations during her
    employment and for a one-year period following termination.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">William
    E. Van Valkenberg</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into an employment agreement with William E. Van
    Valkenberg, Chief Legal Officer and Secretary, on
    September&#160;24, 2009. The employment agreement with
    Mr.&#160;Van Valkenberg provides for a base salary at a rate not
    less than $300,000 per year. Under the terms of his employment
    agreement, beginning in 2009, Mr.&#160;Van Valkenberg is
    eligible to receive an annual bonus under the terms of our
    management incentive plan of 50% of his base salary for
    achievement of the management incentive plan at 100% and the
    potential to receive up to 100% of his base salary if the
    performance criteria for this potential is achieved as set forth
    in the management incentive plan. Mr.&#160;Van Valkenberg&#146;s
    annual bonus opportunity under the 2009 Management Incentive
    Plan was subject to proration based on the actual number of days
    he was employed by us during the year.
    Mr.&#160;Van&#160;Valkenberg&#146;s current base salary is
    $300,000 and target annual bonus is 50% of his annual base
    salary with a potential maximum annual bonus of up to 100% of
    his annual base salary. In addition,
    Mr.&#160;Van&#160;Valkenberg will be reimbursed up to $125,000
    for relocation expenses (excluding payment of commissions or
    other costs associated with buying or selling a home) associated
    with his relocation to Dallas. Prior to his relocation to
    Dallas, Texas, we also paid for a furnished two&#160;bedroom
    apartment within proximity to our office for
    Mr.&#160;Van&#160;Valkenberg&#146;s use and reimbursed travel
    expenses for him and his spouse in accordance with our standard
    travel policy. On September&#160;28, 2009, in accordance with
    the terms of his employment agreement,
    Mr.&#160;Van&#160;Valkenberg was granted an option to purchase
    300,000&#160;shares of our common stock at an exercise price of
    $3.00. The stock option vests with respect to 5% of the shares
    subject to the stock option each quarter commencing on the first
    day of the calendar quarter immediately following the grant date
    for 15 consecutive quarters and, with respect to the remaining
    25% of the shares subject to the stock option, on the first day
    of the next following calendar quarter, subject to continued
    service through each applicable date.
    Mr.&#160;Van&#160;Valkenberg is entitled to three weeks paid
    vacation per year, is eligible to participate in all employee
    welfare benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Mr.&#160;Van&#160;Valkenberg all
    fringe benefits and perquisites that are made available to other
    senior executives. As part of his employment,
    Mr.&#160;Van&#160;Valkenberg is also entitled to certain
    payments upon termination of his employment in certain
    circumstances as described below under &#147;Executive
    Compensation&#160;&#151; Potential Payments Upon Termination or
    Change in Control&#160;&#151; Arrangements with Our Other Named
    Executive Officers.&#148; Our employment agreement with
    Mr.&#160;Van&#160;Valkenberg, among other things, also includes
    confidentiality provisions and non-competition, non-interference
    and non-disparagement obligations during his employment and for
    a period of six months following termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to entering into the employment agreement with
    Mr.&#160;Van Valkenberg, we entered into a consulting agreement
    with Mr.&#160;Van Valkenberg on June&#160;28, 2009. Under the
    consulting agreement, Mr.&#160;Van Valkenberg performed legal
    consulting services for us on a
    <FONT style="white-space: nowrap">project-by-project</FONT>
    basis in exchange for consulting fees in the amount of $1,000
    per day. In addition, Mr.&#160;Van Valkenberg was entitled to
    reimbursement for his reasonable out-of-pocket expenses related
    to the consulting services. The consulting agreement with
    Mr.&#160;Van Valkenberg, among other things, included
    confidentiality and intellectual property assignment provisions
    and employee non-solicitation obligations during the consulting
    period and for a period of 12&#160;months following termination.
</DIV>
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    <BR>
    110
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    Payments upon Termination or Change in Control</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our employment agreements with our named executive officers
    provide for payments in the event of termination of employment
    in certain circumstances, and our stock option agreements with
    Mr.&#160;Barker provide for accelerated vesting in connection
    with certain change in control transactions. In addition, all
    outstanding stock options granted to our named executive
    officers would become 100% vested upon the named executive
    officer&#146;s death or disability (as defined in
    Section&#160;22(e)(3) of the Internal Revenue Code) pursuant to
    the terms of our 1998 Stock Incentive Plan. The descriptions and
    tables that follow describe the payments and benefits that we
    would owe to each of our named executive officers, pursuant to
    the applicable employment and stock option agreements with our
    named executive officers and our 1998 Stock Incentive Plan, and
    are qualified in their entirety by reference to the relevant
    agreements and our 1998 Stock Incentive Plan filed as exhibits
    to the registration statement of which this prospectus is a part.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of &#147;Cause&#148;</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the employment agreements with our named executive
    officers, &#147;Cause&#148; is generally defined as the
    occurrence of any of the following events:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conviction for criminal acts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    making a materially false statement to our auditors or legal
    counsel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    falsification of any corporate document or form;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any material breach by the named executive officer of his or her
    material obligations to us or of any published company policy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any material breach by the named executive officer of the
    provisions of his or her employment agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    making a material misrepresentation of fact or omission to
    disclose material facts in relation to transactions occurring in
    our business and financial matters;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    continued performance of his or her duties in an incompetent,
    unprofessional, unsuccessful, insubordinate or negligent manner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of their employment agreements, certain of
    our named executive officers have the ability to cure one or
    more of the foregoing breaches prior to termination, generally
    within ten&#160;days after receipt of written notice of breach.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of Good Reason</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the employment agreements of our named
    executive officers, &#147;Good Reason&#148; is generally defined
    as any material failure on our part to comply with any of our
    material obligations under the employment agreement, which
    failure has not been cured within ten calendar days after
    written notice has been given to us. Additionally, the
    employment agreement with Mr.&#160;Winn further provides that
    our failure to continue his status as President and Chief
    Executive Officer or to accord him the powers, duties, reporting
    responsibilities and perquisites contemplated in his employment
    agreement shall constitute good reason.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of Disability</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our employment agreements with each of our named executive
    officers, we may terminate the named executive officer&#146;s
    employment for &#147;disability&#148; if, as a result of the
    named executive officer&#146;s incapacity due to physical or
    mental illness, he or she has been absent from his or her duties
    on a full-time basis for (i)&#160;a period of six consecutive
    months or (ii)&#160;for shorter periods aggregating six months
    during any 12&#160;month period.
</DIV>
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    <BR>
    111
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Arrangements
    with Stephen T. Winn</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to our employment agreement with Mr.&#160;Winn, in the
    event of his termination by reason of death or disability,
    Mr.&#160;Winn is entitled to receive salary continuation
    payments in an aggregate amount equal to 50% of his current
    salary in six equal monthly installments and a lump sum cash
    payment equal to any earned but unpaid salary and bonus and any
    accrued but unused vacation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, except in the event of our liquidation, dissolution
    or winding up, whether voluntary or involuntary, or cessation of
    our business in the ordinary course for any reason, if
    Mr.&#160;Winn&#146;s employment is terminated by us without
    cause or by Mr.&#160;Winn for good reason, Mr.&#160;Winn is
    entitled to a lump sum payment equal to 150% of his annual base
    salary payable within five days of his termination and 100% of
    his target annual bonus for the year payable after the year end
    based on achievement of any criteria or conditions to payment
    that are contingent on our earnings or other financial
    performance for the year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Arrangements
    with Timothy J. Barker</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to our amended employment agreement with
    Mr.&#160;Barker, in the event of termination by reason of death
    or disability, by us without cause or by Mr.&#160;Barker for
    good reason, Mr.&#160;Barker is entitled to receive salary
    continuation payments in an aggregate amount equal to 50% of his
    current annual salary in six equal monthly installments and a
    lump sum cash payment equal to any earned but unpaid salary and
    bonus and any accrued but unused vacation as of the termination
    date. In the event such termination occurs within twelve months
    following the consummation of a &#147;business combination
    transaction,&#148; the salary continuation payments to
    Mr.&#160;Barker would be increased to an aggregate amount equal
    to 100% of his annual base salary payable in twelve equal
    monthly installments under the terms of his amended employment
    agreement. The salary continuation payments are conditioned upon
    Mr.&#160;Barker executing a full release and covenant not to sue
    on or before the thirtieth&#160;day following his termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, the stock option agreements related to our stock
    option grants to Mr.&#160;Barker on February&#160;26, 2009,
    February&#160;29, 2008, December&#160;15, 2006 and
    October&#160;27, 2005 provide that 100% of the unvested options
    subject to the agreements will fully vest upon a &#147;business
    combination transaction.&#148; The stock option agreement
    related to our stock option grant to Mr.&#160;Barker on
    February&#160;25, 2010 provides that 50% of the unvested options
    subject to the agreement will fully vest upon a &#147;business
    combination transaction&#148; and 100% of the unvested options
    subject to the agreement will fully vest if Mr.&#160;Barker
    ceases to be a service provider for any reason other than for
    Cause (as defined in Mr.&#160;Barker&#146;s amended employment
    agreement) within one year of the consummation of a
    &#147;business combination transaction.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of Mr.&#160;Barker&#146;s amended employment
    agreement and stock option agreements, a &#147;business
    combination transaction&#148; is defined to include our merger
    with or into another entity where we are not the surviving
    entity, our dissolution, the sale of all or substantially all
    our assets and the transfer of beneficial ownership representing
    40% or more of the voting power of our then outstanding
    securities to a person or group other than Seren Capital, Ltd.,
    Stephen T. Winn, affiliates of Stephen T. Winn and a trustee or
    other fiduciary holding securities under one of our employee
    benefit plans.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Arrangements
    with Our Other Named Executive Officers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to our employment agreements with each of
    Ms.&#160;Chaffin Glover and Messrs.&#160;Van Valkenberg and
    Wakeham, in the event of termination by reason of death or
    disability, by us without cause or by the named executive
    officer for good reason, each of these named executive officers
    is entitled to receive salary continuation payments in an
    aggregate amount equal to 50% of their current annual salary and
    a lump sum cash payment equal to any earned but unpaid salary
    and bonus and any accrued but unused vacation as of the
    termination date. The salary continuation payments to
    Ms.&#160;Chaffin Glover are payable in twelve equal monthly
    installments at an amount per installment equal to one
    twenty-fourth of Ms.&#160;Chaffin Glover&#146;s current annual
    salary. The salary continuation payments to Messrs.&#160;Van
    Valkenberg and Wakeham are payable in six equal monthly
    installments at an amount per installment equal to one-twelfth
    of the named executive officer&#146;s current annual salary. The
    salary continuation payments are conditioned upon the named
    executive officer executing a full release and covenant not to
    sue on or before the thirtieth&#160;day following termination.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    112
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides the total dollar value of the
    compensation that would be paid to each of our named executive
    officers assuming a change in control or the termination of his
    or her employment in certain defined circumstances on
    December&#160;31, 2009, pursuant to the arrangements described
    above:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="25%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Termination on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Death or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Disability or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without Cause<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>or Good Reason<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Termination<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Within 12&#160;Months of a<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Termination on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Business<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Business<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Death or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Death or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Cause or for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Combination<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Combination<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Named Executive Officer</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Compensation</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Disability</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Disability</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Good Reason</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Transaction</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Transaction</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stephen T. Winn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Severance Payment
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $600,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Salary Continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Bonus
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1),(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt; color: #000000; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Total
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $900,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Timothy J. Barker
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Salary Continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $157,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $157,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $315,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Option Acceleration
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $39,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $39,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5),(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Total
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $39,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $157,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $157,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $39,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $315,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Dirk D. Wakeham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Salary Continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Option Acceleration
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $124,688
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt; color: #000000; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Total
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $124,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Ashley Chaffin Glover
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Salary Continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Option Acceleration
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $19,750
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Total
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $19,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    William E. Van Valkenberg
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Salary Continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Option Acceleration
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt; color: #000000; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Total
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Amount would not be paid in the event of Mr.&#160;Winn&#146;s
    termination in connection with our liquidation, dissolution or
    winding up, whether voluntary or involuntary, or cessation of
    our business in the ordinary course for any reason.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Value represents target bonus for Mr.&#160;Winn for 2009.
    Subject to achievement of any criteria or conditions to the
    payment of Mr.&#160;Winn&#146;s target bonus which are
    contingent on our earnings or other financial performance for
    the year.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Amount of salary continuation payment if termination is not
    within twelve months following the consummation of a business
    combination transaction.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Value represents the gain our named executive officers would
    receive, calculated as the positive difference between our stock
    price on December&#160;31, 2009 and the exercise price of the
    named executive officer&#146;s unvested options subject to
    acceleration upon the named executive officer&#146;s death or
    disability pursuant to our 1998 Stock Incentive Plan. On
    December&#160;31, 2009, our stock price was $2.83.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Value represents the gain Mr.&#160;Barker would receive,
    calculated as the positive difference between our stock price on
    December&#160;31, 2009 and the exercise price of
    Mr.&#160;Barker&#146;s unvested options subject to acceleration
    upon a business combination transaction pursuant to the terms of
    certain of his stock option agreements with us. On
    December&#160;31, 2009, our stock price was $2.83.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Amount reflects payments that would have been made pursuant to
    Mr.&#160;Barker&#146;s employment agreement, as amended on
    January&#160;1, 2010, if the amended employment agreement had
    been in effect on December&#160;31, 2009 in order to provide
    meaningful, current information.</TD>
</TR>

</TABLE>
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    <BR>
    113
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Amended
    and Restated 1998 Stock Incentive Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Amended and Restated 1998 Stock Incentive Plan, or our 1998
    Stock Incentive Plan, was first adopted by our board of
    directors on November&#160;24, 1998 and approved by our
    stockholders on November&#160;24, 1998. The 1998 Stock Incentive
    Plan has been amended and restated. The 1998 Stock Incentive
    Plan has a ten year term, which was restarted in an amendment
    and restatement of the 1998 Stock Incentive Plan in
    April&#160;2010. Our 1998 Stock Incentive Plan provides for the
    grant of incentive stock options, within the meaning of
    Section&#160;422 of the Internal Revenue Code to our employees
    and any parent and subsidiary corporations&#146; employees, and
    for the grant of non-qualified stock options, stock appreciation
    rights, restricted stock and performance units to our employees
    and consultants and any parent and subsidiary corporations&#146;
    employees and consultants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have reserved a total of 20,000,000&#160;shares of our common
    stock for issuance pursuant to the 1998 Stock Incentive Plan. As
    of December&#160;31, 2009, options to purchase
    15,707,456&#160;shares of common stock were outstanding and
    732,285&#160;shares were available for future grant under the
    1998 Stock Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee administers our 1998 Stock Incentive
    Plan. Under our 1998 Stock Incentive Plan, our compensation
    committee has the power to determine the terms of the awards,
    including the employees and consultants who will receive awards,
    the exercise price, the number of shares subject to each award,
    the vesting schedule and exercisability of awards and the manner
    of payment of the exercise price of the award. The administrator
    also has the authority to institute an exchange program whereby
    the exercise prices of outstanding awards may be increased or
    reduced, outstanding awards may be surrendered or cancelled in
    exchange for awards with a higher or lower exercise price, or
    outstanding awards may be transferred to a third party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to all stock options granted under the 1998 Stock
    Incentive Plan, the exercise price must at least be equal to the
    fair market value of our common stock on the date of grant and
    the term of an option may not exceed ten years, except that with
    respect to incentive stock options granted to any participant
    who owns more than 10% of the voting power of all classes of our
    outstanding stock as of the grant date, the term must not exceed
    five years and the exercise price must equal at least 110% of
    the fair market value on the grant date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After termination of an employee or consultant, he or she may
    exercise his or her option for the period of time stated in the
    option agreement, or if not so stated, for 30&#160;days
    following termination in the case of an employee holding options
    or stock appreciation rights granted before February&#160;22,
    2008, for 90&#160;days following termination in the case of an
    employee holding options or stock appreciation rights granted on
    or after February&#160;22, 2008 and for 30&#160;days following
    termination in the case of a consultant holding options or stock
    appreciation rights. If termination of an employee is due to
    disability or death, the option will become 100% vested and will
    remain exercisable for 12&#160;months after the date of such
    employee&#146;s death or disability, but in no event later than
    the date on which the option or stock appreciation right
    terminates. Notwithstanding the foregoing, our compensation
    committee may provide for more restrictive periods of exercise
    or for forfeiture of awards or cash or common stock received
    pursuant to awards if an employee is terminated for cause or
    commits enumerated actions harmful to our interests within one
    year following a voluntary termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Restricted stock grants may be made alone, in addition to or in
    tandem with other awards granted under our 1998 Stock Incentive
    Plan. Restricted stock grants are grants of shares of our common
    stock subject to forfeiture restrictions that lapse in
    accordance with terms and conditions established by our
    compensation committee. Our compensation committee determines
    the number of shares subject to a restricted stock grant to any
    employee or consultant and may impose whatever conditions to the
    lapse of forfeiture restrictions it determines to be
    appropriate. Unless our compensation committee determines
    otherwise, shares subject to restricted stock grants that are
    still subject to forfeiture restrictions upon termination of the
    purchaser&#146;s service with us are automatically forfeited.
    However, unless provided otherwise in the agreement relating to
    a restricted stock grant, forfeiture restrictions shall lapse
    with respect to restricted stock grants made to an employee upon
    such employee&#146;s death, disability, or retirement from
    active employment at or after age&#160;65.
</DIV>
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    <BR>
    114
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our 1998 Stock Incentive Plan provides that upon the occurrence
    of a &#147;business combination transaction,&#148; each option,
    stock appreciation right and performance unit will terminate
    upon the effective date of such transaction (provided that
    holders of vested stock appreciation rights will receive cash
    equal to the amount they would have received upon exercise of
    the vested right and holders of performance units will receive
    the prorated value of such unit as if all applicable performance
    objectives had been met) and all forfeiture restrictions
    applicable to restricted stock grants shall continue in full
    force and effect, unless otherwise provided in the agreement
    relating to an award or the provision of substitute securities
    of another corporation arising without the necessity of the
    action of our board of directors is made in connection with the
    transaction. Our 1998 Stock Incentive Plan defines
    &#147;business combination transactions&#148; to include our
    merger with or into another corporation, our dissolution, the
    sale of substantially all of our assets and the transfer of
    beneficial ownership of securities representing 40% or more of
    the voting power of our then outstanding securities to a person
    or group other than Seren Capital, Ltd., Stephen T. Winn,
    affiliates of Stephen T. Winn and a trustee or other fiduciary
    holding securities under one of our employee benefit plans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless our compensation committee otherwise provides in the
    agreement governing a non-qualified stock option, non-qualified
    stock options or stock appreciation rights granted before
    September&#160;28, 2009, may be transferred by the holder to
    members of the holder&#146;s immediate family, trusts for the
    benefit of such immediate family members and partnerships in
    which such immediate family members are the only partners,
    provided that no consideration is provided for the transfer.
    Incentive stock options and performance units granted before
    September&#160;28, 2009 and all awards granted on and after
    September&#160;28, 2009 under the 1998 Stock Incentive Plan,
    unless determined otherwise by our compensation committee, are
    generally not transferable other than by will or the laws of
    descent and distribution, and may be exercised only during the
    lifetime of the participant and only by such participant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has the authority to amend, alter,
    suspend or terminate the 1998 Stock Incentive Plan provided such
    action does not impair the rights of any participant without the
    written consent of such participant. In February 2010, our board
    of directors terminated our ability to make grants under our
    1998 Stock Incentive Plan effective upon the closing of this
    offering. Following the closing of this offering, we will grant
    equity awards under our 2010 Equity Incentive Plan. However, our
    1998 Stock Incentive Plan will continue to govern the terms and
    conditions of all outstanding equity awards granted under our
    1998 Stock Incentive Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2010
    Equity Incentive Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors adopted our 2010 Equity Incentive Plan on
    February&#160;26, 2010 to be effective upon completion of this
    offering subject to the approval of our stockholders. We expect
    our stockholders will approve the 2010 Equity Incentive Plan
    prior to the completion of this offering. Our 2010 Equity
    Incentive Plan provides for the grant of incentive stock
    options, within the meaning of Section&#160;422 of the Internal
    Revenue Code, to our employees and any parent and subsidiary
    corporations&#146; employees, and for the grant of nonstatutory
    stock options, restricted stock, restricted stock units, stock
    appreciation rights, performance units and performance shares to
    our employees, directors and consultants and our parent and
    subsidiary corporations&#146; employees and consultants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total number of shares of our common stock reserved for
    issuance pursuant to the 2010 Equity Incentive Plan will be
    determined by our board of directors prior to its effectiveness.
    The total number of shares of our common stock reserved under
    our 2010 Equity Incentive Plan will be increased by (a)&#160;any
    shares which have been reserved but not issued under our 1998
    Stock Incentive Plan and are not subject to any awards granted
    thereunder, and (b)&#160;any shares subject to stock options or
    similar awards granted under the 1998 Stock Incentive Plan that
    expire or otherwise terminate without having been exercised in
    full and shares issued pursuant to awards granted under the 1998
    Stock Incentive Plan that are forfeited to or repurchased by us.
    The maximum number of shares that may be added to the 2010
    Equity Incentive Plan from the 1998 Stock Incentive Plan
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares.
    In addition, our 2010 Equity Incentive Plan provides for annual
    increases in
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the number of shares available for issuance thereunder on the
    first day of each fiscal year, beginning with our 2011 fiscal
    year, equal to the least of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;of
    our outstanding shares on the last day of the immediately
    preceding fiscal year;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such other amount as our board of directors may determine.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an award expires or becomes unexercisable without having been
    exercised in full, is surrendered pursuant to an exchange
    program, or, with respect to restricted stock, restricted stock
    units, performance shares or performance units, is forfeited to
    or repurchased by us, the unpurchased shares (or for awards
    other than options and stock appreciation rights, the forfeited
    or repurchased shares) which were subject thereto will become
    available for future grant or sale under our 2010 Equity
    Incentive Plan. Upon exercise of a stock appreciation right
    settled in shares, only shares actually issued pursuant to the
    stock appreciation right will cease to be available under our
    2010 Equity Incentive Plan. Shares used to pay the exercise
    price of an award or to satisfy the tax withholding obligations
    related to an award will become available for future grant or
    sale under our 2010 Equity Incentive Plan. Shares that have
    actually been issued under our 2010 Equity Incentive Plan under
    any award will not be returned to our 2010 Equity Incentive Plan
    and will not become available for future distribution under our
    2010 Equity Incentive Plan; provided, however, that if shares of
    restricted stock, restricted stock units, performance shares or
    performance units are repurchased by us or are forfeited to us,
    such shares will become available for future grant under our
    2010 Equity Incentive Plan. To the extent an award is paid out
    in cash rather than stock, such cash payment will not reduce the
    number of shares available for issuance under our 2010 Equity
    Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we declare a dividend or other distribution or engage in a
    recapitalization, stock split, reverse stock split,
    reorganization, merger, consolidation,
    <FONT style="white-space: nowrap">split-up,</FONT>
    spin-off, combination, repurchase, or exchange of shares or
    other securities of the Company, or other change in the
    corporate structure of the Company affecting our shares, the
    administrator will adjust the (i)&#160;number and class of
    shares available for issuance under our 2010 Equity Incentive
    Plan, (ii)&#160;number, class and price of shares subject to
    outstanding awards, and (iii)&#160;specified per-person limits
    on awards to reflect the change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors or a committee of our board will
    administer our 2010 Equity Incentive Plan. To the extent the
    administration determines it desirable to qualify awards granted
    under our 2010 Equity Incentive Plan as &#147;performance based
    compensation&#148; within the meaning of Section&#160;162(m) of
    the Internal Revenue Code, the committee will consist of two or
    more &#147;outside directors&#148; within the meaning of
    Section&#160;162(m) of the Internal Revenue Code. The
    administrator has the power to select the employees, consultants
    and directors who will receive awards, to determine the terms of
    the awards, including the exercise price, the number of shares
    subject to each such award, the exercisability of the awards and
    the form of consideration payable upon exercise. The
    administrator also has the authority to institute an exchange
    program whereby the exercise prices of outstanding awards may be
    increased or reduced, outstanding awards may be surrendered or
    cancelled in exchange for awards with a higher or lower exercise
    price, or outstanding awards may be transferred to a third party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exercise price of options granted under our 2010 Equity
    Incentive Plan must at least be equal to the fair market value
    of our common stock on the date of grant. The term of an
    incentive stock option may not exceed ten years, except that
    with respect to any participant who owns more than 10% of the
    voting power of all classes of our outstanding stock as of the
    grant date, the term must not exceed five years and the exercise
    price must equal at least 110% of the fair market value on the
    grant date. The administrator determines the terms of all other
    options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After termination of an employee, director or consultant, he or
    she may exercise his or her option for the period of time stated
    in the option agreement. Generally, if termination is due to
    death or disability, the option will remain exercisable for
    twelve months. In all other cases, the option will generally
    remain exercisable for three months. However, an option
    generally may not be exercised later than the expiration of its
    term.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stock appreciation rights may be granted under our 2010 Equity
    Incentive Plan. Stock appreciation rights allow the recipient to
    receive the appreciation in the fair market value of our common
    stock between the exercise date and the date of grant. The
    administrator determines the terms of stock appreciation rights,
    including when such rights become exercisable and whether to pay
    the increased appreciation in cash or with shares of our common
    stock, or a combination thereof. The exercise price of stock
    appreciation rights granted under our 2010 Equity Incentive Plan
    must at least be equal to 100% of the fair market value of our
    common stock on the date of grant. Stock appreciation rights
    expire under the same rules that apply to stock options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Restricted stock may be granted under our 2010 Equity Incentive
    Plan. Restricted stock awards are shares of our common stock
    that vest in accordance with terms and conditions established by
    the administrator. The administrator will determine the number
    of shares of restricted stock granted to any service provider.
    The administrator may impose whatever conditions to vesting it
    determines to be appropriate. For example, the administrator may
    set restrictions based on the achievement of specific
    performance goals. Shares of restricted stock that do not vest
    are subject to our right of repurchase or forfeiture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our 2010 Equity Incentive Plan provides for an automatic grant
    to outside directors of a nondiscretionary award of restricted
    stock on April 1 of each year, beginning in 2011, equal to
    $50,000 in value on the grant date (rounded up to the nearest
    whole share). This automatic restricted stock award will be
    issued for no cash consideration and will be forfeited and
    automatically transferred to and reacquired by us at no cost if
    the director ceases services as a member of our board of
    directors. This forfeiture provision will lapse as to 5% of the
    award on the first day of each calendar quarter for 15
    consecutive calendar quarters beginning on first day of the
    calendar quarter immediately following the date of grant, and as
    to the remaining 25% of the award on the first day of the
    calendar quarter immediately following such fifteenth
    consecutive quarter, subject to the grantee&#146;s continued
    service as a director through each such date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Restricted stock units may be granted under our 2010 Equity
    Incentive Plan. Restricted stock units are awards that will
    result in a payment to a participant at the end of a specified
    period only if performance goals established by the
    administrator are achieved or the award otherwise vests. The
    administrator may impose whatever conditions to vesting,
    restrictions and conditions to payment it determines to be
    appropriate. For example, the administrator may set restrictions
    based on the achievement of specific performance goals, on the
    continuation of service or employment or any other basis
    determined by the administrator. Payments of earned restricted
    stock units may be made, in the administrator&#146;s discretion,
    in cash or with shares of our common stock, or a combination
    thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Performance units and performance shares may be granted under
    our 2010 Equity Incentive Plan. Performance units and
    performance shares are awards that will result in a payment to a
    participant only if performance goals established by the
    administrator are achieved or the awards otherwise vest. The
    administrator will establish organizational or individual
    performance goals in its discretion, which, depending on the
    extent to which they are met, will determine the number
    <FONT style="white-space: nowrap">and/or</FONT> the
    value of performance units and performance shares to be paid out
    to participants. Performance units shall have an initial dollar
    value established by the administrator prior to the grant date.
    Performance shares shall have an initial value equal to the fair
    market value of our common stock on the grant date. Payment for
    performance units and performance shares may be made in cash or
    in shares of our common stock with equivalent value, or in some
    combination, as determined by the administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the administrator provides otherwise, our 2010 Equity
    Incentive Plan does not allow for the transfer of awards and
    only the recipient of an award may exercise an award during his
    or her lifetime.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our 2010 Equity Incentive Plan provides that in the event of our
    change in control, as defined in the 2010 Equity Incentive Plan,
    each outstanding award will be treated as the administrator
    determines, including that the successor corporation or its
    parent or subsidiary will assume or substitute an equivalent
    award for each outstanding award. The administrator is not
    required to treat all awards similarly. If there is no
    assumption or substitution of outstanding awards, the awards
    will fully vest, all restrictions will lapse, all awards with
    performance-based vesting will have all performance goals deemed
    achieved at 100% of target levels and all other terms and
    conditions met and the awards will become fully exercisable. The
    administrator will provide notice to the recipient that he or
    she has the right to exercise the option and stock appreciation
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    right as to all of the shares subject to the award. The option
    or stock appreciation right will terminate upon the expiration
    of the period of time the administrator provides in the notice.
    In the event the service of an outside director is terminated on
    or following a change in control, other than pursuant to a
    voluntary resignation, his or her options and stock appreciation
    rights that are not assumed or substituted in the change in
    control will fully vest and become immediately exercisable, all
    restrictions on restricted stock will lapse and all performance
    goals or other vesting requirements for performance shares and
    units will be deemed achieved and all other terms and conditions
    met.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our 2010 Equity Incentive Plan will automatically terminate in
    2020, unless we terminate it sooner. In addition, our board of
    directors has the authority to amend, alter, suspend or
    terminate the 2010 Equity Incentive Plan provided such action
    does not impair the rights of any participant without the
    written consent of such participant.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">401(k)
    Retirement Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain a 401(k) plan which covers substantially all of our
    employees. The 401(k) plan is an essential part of the
    retirement package needed to attract and retain employees in our
    industry. The 401(k) plan permits employees to contribute a
    portion of their compensation to the plan on a pre-tax basis, up
    to a 2010 statutory limit of $16,500. For employees
    50&#160;years of age or older, an additional
    <FONT style="white-space: nowrap">catch-up</FONT>
    contribution of $5,500 is allowable. We may provide a matching
    contribution, the amount of which is determined at our
    discretion. For 401(k) contributions made in calendar 2009, we
    matched an amount equal to 25% of each participant&#146;s
    elective deferral, up to 6% of a participant&#146;s compensation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitations
    on Liability and Indemnification Matters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that our amended and restated certificate of
    incorporation, to be effective upon the completion of this
    offering, will contain provisions that limit the liability of
    our directors for monetary damages to the fullest extent
    permitted by Delaware law. Consequently, our directors will not
    be personally liable to us or our stockholders for monetary
    damages for any breach of fiduciary duties as directors, except
    liability for:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any breach of the director&#146;s duty of loyalty to us or our
    stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any act or omission not in good faith or that involves
    intentional misconduct or a knowing violation of law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unlawful payments of dividends or unlawful stock repurchases or
    redemptions as provided in Section&#160;174 of the Delaware
    General Corporation Law;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any transaction from which the director derived an improper
    personal benefit.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that our amended and restated certificate of
    incorporation and amended and restated bylaws, to be effective
    upon the completion of this offering, will provide that we are
    required to indemnify our directors and officers, in each case
    to the fullest extent permitted by Delaware law. We expect that
    our amended and restated bylaws also will provide that we are
    obligated to advance expenses incurred by a director or officer
    in advance of the final disposition of any action or proceeding,
    and permit us to secure insurance on behalf of any officer,
    director, employee or other agent for any liability arising out
    of his or her actions in that capacity regardless of whether we
    would otherwise be permitted to indemnify him or her under the
    provisions of Delaware law. Prior to completion of this
    offering, we expect to enter into agreements to indemnify our
    directors, executive officers and other employees as determined
    by our board of directors. With specified exceptions, these
    agreements will provide for indemnification for related expenses
    including, among other things, attorneys&#146; fees, judgments,
    fines and settlement amounts incurred by any of these
    individuals in any action or proceeding. We believe that these
    bylaw provisions and indemnification agreements are necessary to
    attract and retain qualified persons as directors and officers.
    We also maintain directors&#146; and officers&#146; liability
    insurance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The limitation of liability and indemnification provisions we
    expect to be included in our amended and restated certificate of
    incorporation and amended and restated bylaws, to be effective
    upon the completion of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    this offering, may discourage stockholders from bringing a
    lawsuit against our directors and officers for breach of their
    fiduciary duty. They may also reduce the likelihood of
    derivative litigation against our directors and officers, even
    though an action, if successful, might benefit us and other
    stockholders. Further, a stockholder&#146;s investment may be
    adversely affected to the extent that we pay the costs of
    settlement and damage awards against directors and officers as
    required by these indemnification provisions. At present, there
    is no pending litigation or proceeding involving any of our
    directors, officers or employees for which indemnification is
    sought, and we are not aware of any threatened litigation that
    may result in claims for indemnification.
</DIV>
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    <BR>
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<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since January&#160;1, 2007, there has not been, nor is there
    currently proposed, any transaction or series of similar
    transactions to which we were or are a party in which the amount
    involved exceeded or exceeds $120,000 and in which any of our
    directors, executive officers, holders of more than 5% of any
    class of our voting securities, or any member of the immediate
    family of any of the foregoing persons, had or will have a
    direct or indirect material interest, other than compensation
    arrangements with directors and executive officers, which are
    described where required in this prospectus under
    &#147;Executive Compensation&#148;, and the transactions
    described below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Private
    Placement Financings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2008, we sold 3,025,000&#160;shares of our
    Series&#160;C Convertible Preferred Stock at a price of $4.50
    per share for an aggregate price of $13,612,500, all of which
    were sold to investors that are our affiliates, including
    Timothy J. Barker, Apax Excelsior VI, L.P. and affiliated
    entities, or the Apax Funds, and Camden Strategic Fund&#160;III,
    L.P. and affiliated entities, or the Camden Funds. The Camden
    Funds are not affiliated with Camden Property Trust.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our Series&#160;C financing described above,
    we entered into a Second Amended and Restated Registration
    Rights Agreement, or the Registration Rights Agreement, with
    several of our significant stockholders and affiliates,
    including Stephen T. Winn and entities affiliated with
    Mr.&#160;Winn, Timothy J. Barker, the Apax Funds, individuals
    affiliated with the Apax Funds, the Camden Funds, individuals
    affiliated with the Camden Funds, Advance Capital Partners, L.P.
    and affiliated entities, or the Advance Capital Funds, and
    individuals affiliated with the Advance Capital Funds, including
    one of our directors, Jeffrey T. Leeds. Pursuant to this
    agreement, we granted such stockholders certain registration
    rights with respect to shares of our common stock issuable upon
    conversion of the shares of preferred stock held by them, shares
    of our common stock issuable upon exercise of certain warrants
    held by them and shares of our common stock then held or
    thereafter acquired by such stockholders. For more information
    regarding the Registration Rights Agreement, see
    &#147;Description of Capital Stock&#160;&#151; Registration
    Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2010
    Shareholders Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2010, we entered into a Fourth Amended and Restated
    Shareholders Agreement, or 2010 Shareholders Agreement, with
    several of our significant stockholders including Stephen T.
    Winn, individuals and entities affiliated with Mr.&#160;Winn,
    Timothy J. Barker, the Apax Funds, individuals affiliated with
    the Apax Funds, the Camden Funds, individuals affiliated with
    the Camden Funds, the Advance Capital Funds and individuals
    affiliated with the Advance Capital Funds, including one of our
    directors, Jeffrey T. Leeds. The 2010 Shareholders Agreement,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provides for the voting of shares with respect to the
    constituency of our board of directors and our compensation
    committee and audit committee;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provides for the redemption, on certain terms and conditions, of
    all or any portion of the Series&#160;A Convertible Preferred
    Stock held by Advance Capital and its affiliates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    grants our preferred stockholders certain rights of first
    refusal and co-sale with respect to proposed transfers of our
    securities by certain stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    grants our preferred stockholders a right of first offer with
    respect to sales of our shares by us, subject to specified
    exclusions (which exclusions are expected to include the sale of
    the shares pursuant to this prospectus);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    obligates us to deliver periodic financial statements to our
    major investors.
</TD>
</TR>

</TABLE>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We anticipate that the 2010 Shareholders Agreement will
    terminate upon completion of this offering. This is not a
    complete description of the 2010 Shareholders Agreement and is
    qualified by the full text of the 2010 Shareholders Agreement
    filed as an exhibit to the registration statement of which this
    prospectus is a part.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain stock option and restricted stock grants to our
    non-employee directors who are not affiliated with our major
    stockholders are described in &#147;Management&#160;&#151;
    Director Compensation.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain stock option grants to our named executive officers are
    described in &#147;Executive Compensation&#160;&#151; Grants of
    Plan-Based Awards,&#148; &#147;Executive
    Compensation&#160;&#151; Outstanding Equity Awards at
    December&#160;31, 2009&#148; and &#147;Executive
    Compensation&#160;&#151; Employment Agreements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to those option grants, on February&#160;29, 2008,
    we granted an option to purchase 300,000&#160;shares of our
    common stock to Jason D. Lindwall at an exercise price of $3.50.
    The shares subject to the stock option vest in equal quarterly
    installments over 16 consecutive quarters commencing on the
    first day of the calendar quarter immediately following the
    grant date, subject to continued service through each applicable
    date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;26, 2009, we granted an option to purchase
    100,000&#160;shares of our common stock to Jason D. Lindwall at
    an exercise price of $3.00. The shares subject to the stock
    option vest in equal quarterly installments over 16 consecutive
    quarters commencing on the first day of the calendar quarter
    immediately following the grant date, subject to continued
    service through each applicable date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;25, 2010, we granted options to purchase
    350,000, 225,000, 50,000 and 300,000&#160;shares of our common
    stock to Timothy J. Barker, Ashley Chaffin Glover, Jason D.
    Lindwall and Dirk D. Wakeham, respectively, at an exercise price
    of $3.75. Such stock options vest with respect to 5% of the
    shares subject to the stock option each quarter commencing on
    the first day of the calendar quarter immediately following the
    grant date for 15 consecutive quarters and, with respect to the
    remaining 25% of the shares subject to the stock option, on the
    first day of the next following calendar quarter, subject to
    continued service through each applicable date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Arrangements and Indemnification Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have entered into employment agreements with each of our
    executive officers that include, among other things,
    compensation terms, provisions regarding payments upon
    termination in certain circumstances and confidentiality and
    non-competition provisions as described under &#147;Executive
    Compensation&#160;&#151; Employment Agreements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the completion of this offering, we expect to enter
    into indemnification agreements with each of our directors and
    officers. The indemnification agreements and the indemnification
    provisions we expect will be included in our amended and
    restated certificate of incorporation and amended and restated
    bylaws, to be effective upon the completion of this offering,
    will require us to indemnify our directors and officers to the
    fullest extent permitted by Delaware law. For further
    information, see &#147;Executive Compensation&#160;&#151;
    Limitations on Liability and Indemnification Matters.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Transactions with our Significant Stockholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;31, 2008, we declared and paid all dividends
    then accrued and unpaid on outstanding shares of our convertible
    preferred stock. We issued an aggregate of
    16,294,894&#160;shares of our common stock and promissory notes
    in an aggregate principal amount of $11,064,391.53 to our
    holders of convertible preferred stock in payment of this
    dividend, including 7,718,396&#160;shares of our common stock
    and promissory notes in an aggregate principal amount of
    $4,631,043.20 to Stephen T. Winn and entities affiliated with
    Mr.&#160;Winn, 21,325&#160;shares of our common stock and
    promissory notes in an aggregate principal amount of $33,482.44
    to Timothy J. Barker, 6,074,335&#160;shares of our common stock
    and promissory notes in an aggregate principal amount of
    $4,345,977.78 to the Apax Funds, 1,708,406&#160;shares of our
    common stock and promissory notes in an aggregate principal
    amount of $1,025,047.60 to the Advance Capital Funds,
    26,195&#160;shares of our common stock and promissory notes in
    an aggregate principal amount of $15,718.77 to Jeffrey T. Leeds,
    one
</DIV>
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    <BR>
    121
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of our directors, and 694,164&#160;shares of our common stock
    and promissory notes in an aggregate principal amount of
    $969,070.74 to the Camden Funds. We expect to repay all amounts
    outstanding under the promissory notes issued in this dividend
    upon completion of this offering. See &#147;Use of
    Proceeds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;31, 2009, we declared and paid all dividends
    then accrued and unpaid on outstanding shares of our convertible
    preferred stock. We issued an aggregate of 2,837,345&#160;shares
    of our common stock and cash in an aggregate amount of
    $2,515,832 to our holders of convertible preferred stock in
    payment of this dividend, including 1,308,705&#160;shares of our
    common stock and cash in an aggregate amount of $785,225.56 to
    Stephen T. Winn and entities affiliated with Mr.&#160;Winn,
    6,440&#160;shares of our common stock and cash in an aggregate
    amount of $13,620.12 to Timothy J. Barker, 1,030,735&#160;shares
    of our common stock and cash in an aggregate amount of
    $1,142,187.95 to the Apax Funds, 289,894&#160;shares of our
    common stock and cash in an aggregate amount of $173,937.49 to
    the Advance Capital Funds, 4,445&#160;shares of our common stock
    and cash in an aggregate amount of $2,667.08 to Jeffrey T.
    Leeds, one of our directors, and 185,470&#160;shares of our
    common stock and cash in an aggregate amount of $387,332.82 to
    the Camden Funds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;23, 2010, we declared and paid all dividends
    accrued and unpaid on outstanding shares of our Series&#160;A
    Convertible Preferred Stock, Series&#160;A1 Convertible
    Preferred Stock and Series&#160;B Convertible Preferred Stock
    through and including March&#160;31, 2010. We issued an
    aggregate of 685,276&#160;shares of our common stock and
    promissory notes in an aggregate principal amount of $435,226.65
    to our holders of such series of convertible preferred stock in
    payment of this dividend, including 314,330&#160;shares of our
    common stock and promissory notes in an aggregate principal
    amount of $188,600.07 to Stephen T. Winn and entities affiliated
    with Mr.&#160;Winn, 1,541&#160;shares of our common stock and
    promissory notes in an aggregate principal amount of $1,849.50
    to Timothy J. Barker, 250,645&#160;shares of our common stock
    and promissory notes in an aggregate principal amount of
    $150,389.28 to the Apax Funds, 70,494&#160;shares of our common
    stock and promissory notes in an aggregate principal amount of
    $42,296.88 to the Advance Capital Funds, 1,080&#160;shares of
    our capital stock and promissory notes in an aggregate principal
    amount of $649.46 to Jeffrey T. Leeds, one of our directors, and
    44,381&#160;shares of our common stock and promissory notes in
    an aggregate principal amount of $48,825.77 to the Camden Funds.
    We expect to repay all amounts outstanding under the promissory
    notes issued in this dividend upon completion of this offering.
    See &#147;Use of Proceeds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, 2008 and 2009, we reimbursed Seren Capital, Ltd., a
    significant stockholder and an entity controlled by Stephen T.
    Winn, approximately $87,000, $34,000 and $44,000, respectively,
    for our use of an airplane owned by Seren Capital, Ltd.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We employ Chris Winn, a son of Stephen T. Winn. In 2009, we paid
    Chris Winn total cash compensation of approximately $133,000. On
    December&#160;12, 2008, we granted Chris&#160;Winn an option to
    purchase 40,000 shares of our common stock at an exercise price
    per share of $3.00. On November&#160;19, 2009, we granted
    Chris&#160;Winn an option to purchase 35,000 shares of our
    common stock at an exercise price per share of $3.00.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Policies
    and Procedures for Related Party Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As provided by our audit committee charter to be effective upon
    completion of this offering, our audit committee is responsible
    for reviewing and approving in advance any related party
    transaction. Prior to the effectiveness of such audit committee
    charter, related party transactions were approved by our board
    of directors.
</DIV>
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    <BR>
    122
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    AND SELLING STOCKHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding beneficial
    ownership of our common stock as of April&#160;1, 2010 and as
    adjusted to reflect the shares of common stock to be issued and
    sold in the offering&#160;by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each person or group of affiliated persons known by us to be the
    beneficial owner of more than 5% of our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of our named executive officers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of our directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all executive officers and directors as a group;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of our selling stockholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beneficial ownership is determined in accordance with the rules
    of the SEC. The information does not necessarily indicate
    beneficial ownership for any other purpose. Under these rules,
    the number of shares of common stock deemed outstanding includes
    shares issuable upon exercise of options or warrants held by the
    respective person or group which may be exercised or converted
    within 60&#160;days after April&#160;1, 2010. For purposes of
    calculating each person&#146;s or group&#146;s percentage
    ownership, stock options and warrants exercisable within
    60&#160;days after April&#160;1, 2010 are included for that
    person or group but not the stock options or warrants of any
    other person or group.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Percentage of beneficial ownership is based on
    111,185,108&#160;shares of common stock outstanding as of
    April&#160;1, 2010
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock outstanding after completion of this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated and subject to applicable community
    property laws, to our knowledge, each stockholder named in the
    following table possesses sole voting and investment power over
    the shares listed, except for those jointly owned with that
    person&#146;s spouse. Unless otherwise noted below, the address
    of each person listed on the table is
    <FONT style="white-space: nowrap">c/o&#160;RealPage,</FONT>
    Inc., 4000 International Parkway, Carrollton, Texas 75007.
    Beneficial ownership representing less than 1% is denoted with
    an asterisk (*).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    123
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Shares Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Owned After the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Offering if Over-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Shares Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subject<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Allotment Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Shares Beneficially Owned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Owned After the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>to Over-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>is Exercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Prior to the Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Allotment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in Full</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Beneficial Owner</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>5% Stockholders:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Entities affiliated with Advance Capital Partners,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,623,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Entities affiliated with Apax Excelsior VI,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,327,292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Stephen T. Winn and entities affiliated with Stephen T.
    Winn<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,996,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Named Executive Officers and Directors:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Stephen T.
    Winn<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,996,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Timothy J.
    Barker<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    945,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Dirk D.
    Wakeham<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    349,375
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Ashley Chaffin
    Glover<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    398,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    William E. Van
    Valkenberg<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Alfred R.
    Berkeley,&#160;III<SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    298,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Richard M.
    Berkeley<SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,487,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Peter
    Gyenes<SUP style="font-size: 85%; vertical-align: top">(10)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Jeffrey T.
    Leeds<SUP style="font-size: 85%; vertical-align: top">(11)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,740,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Jason A.
    Wright<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,327,292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    All executive officers and directors as a group
    (11&#160;people)<SUP style="font-size: 85%; vertical-align: top">(12)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,695,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Other Selling Stockholders:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Entities affiliated with Camden Partners Strategic Fund III,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(13)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,257,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 1,820,015&#160;shares held by Advance Capital
    Offshore Partners, L.P. and 5,803,285&#160;shares held by
    Advance Capital Partners, L.P. Advance Capital Management, LLC,
    or Advance Capital Management, is the general partner of Advance
    Capital Associates, L.P., or Advance Capital Associates, which
    is the general partner of Advance Capital Partners, L.P. and
    Advance Capital Offshore Associates, LDC, which is the general
    partner of Advance Capital Offshore Partners, L.P. Because
    Jeffrey T. Leeds and Robert&#160;A. Bernstein are the members of
    Advance Capital Management, which is the general partner of
    Advance Capital Associates, which is the general partner of
    Advance Capital Partners, L.P. and Advance Capital Offshore
    Associates, LDC, which is the general partner of Advance Capital
    Offshore Partners, L.P., Messrs. Leeds and Bernstein may be
    deemed to have sole voting and dispositive power of the shares
    held by Advance Capital Offshore Partners, L.P. and Advance
    Capital Partners, L.P., or the Advance Capital Funds. The
    address of the Advance Capital Funds and their affiliated
    entities and individuals is 350&#160;Park Avenue, 23rd Floor,
    New York, New York 10022. For a discussion of our material
    relationships with the Advance Capital Funds and affiliated
    entities, see &#147;Certain Relationships and Related Party
    Transactions.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 25,060,173&#160;shares held by Apax Excelsior VI,
    L.P., 2,047,044&#160;shares held by Apax Excelsior VI-A C.V.,
    1,363,718&#160;shares held by Apax Excelsior VI-B C.V. and
    856,357&#160;shares held by Patricof Private Investment Club
    III, L.P. Apax Managers, Inc., or Apax Managers, is the general
    partner of Apax Excelsior VI Partners, L.P., or Apax Excelsior
    VI Partners, which is the general partner of each of Apax
    Excelsior VI, L.P., Apax Excelsior VI-A C.V., Apax Excelsior
    VI-B C.V. and Patricof Private Investment Club III, or the Apax
    Funds. Each of the directors of Apax Managers, Inc. may be
    deemed to share voting and dispositive power over the shares
    held by the Apax Funds. The address of the Apax Funds and their
    affiliated entities and individuals is 601&#160;Lexington
    Avenue, New York, New York 10022. For a </TD>
</TR>
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</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    124
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    discussion of our material relationships with the Apax Funds and
    affiliated entities, see &#147;Certain Relationships and Related
    Party Transactions.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 44,784,925&#160;shares held by Seren Capital, Ltd.,
    250,000&#160;shares held by Seren Catalyst, L.P.,
    1,231,250&#160;shares held by Stephen T. Winn 1996 Family LPA,
    and 13,730,608&#160;shares held by Stephen T. Winn. Stephen T.
    Winn is the sole manager and president of Seren Capital
    Management, L.L.C., which is the general partner of Seren
    Capital, Ltd. and Seren Catalyst, L.P., or the Seren
    Partnerships and, by virtue of this relationship, has sole
    voting and dispositive power over the shares held by the Seren
    Partnerships. Mr.&#160;Winn is the general partner of the
    Stephen T. Winn 1996 Family LPA and has voting and dispositive
    power over the shares held by the Stephen T. Winn 1996 Family
    LPA. For a discussion of our material relationships with
    Mr.&#160;Winn and his affiliated entities, see &#147;Certain
    Relationships and Related Party Transactions.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 427,765&#160;shares held by Timothy J. Barker and
    517,500&#160;shares issuable upon the exercise of options to
    purchase shares of our common stock held by Mr.&#160;Barker that
    are fully vested and exercisable within 60&#160;days of
    April&#160;1, 2010. For a discussion of our material
    relationships with Mr.&#160;Barker, see &#147;Certain
    Relationships and Related Party Transactions.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 349,375&#160;shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Mr.&#160;Wakeham that are fully vested and exercisable within
    60&#160;days of April&#160;1, 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 398,750&#160;shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Ms.&#160;Chaffin Glover that are fully vested and exercisable
    within 60&#160;days of April&#160;1, 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 45,000&#160;shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Mr.&#160;Van Valkenberg that are fully vested and exercisable
    within 60&#160;days of April&#160;1, 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 183,333&#160;shares held by Alfred R.
    Berkeley,&#160;III, of which 32,292 are subject to a repurchase
    right held by us which lapses with respect to an additional
    1,041&#160;shares on the last day of each calendar month
    provided that Mr.&#160;Berkeley remains a director on each such
    applicable date and 13,333 are subject to forfeiture to us,
    which forfeiture restriction lapses as to 666.65&#160;shares on
    the first day of each calendar quarter beginning July&#160;1,
    2010 and as to the remaining 3,333.25&#160;shares on
    April&#160;1, 2014, provided that Mr.&#160;Berkeley remains a
    director on each such applicable date, and 115,000 held by
    Muriel Van Dusen Berkeley and Richard M. Berkeley, as Trustees
    of the 2009 Berkeley Family Resource Trust dated 12/11/2009, or
    the Berkeley Family Trust. Muriel Van Dusen Berkeley and Richard
    M. Berkeley are the trustees of the Berkeley Family Trust and
    share voting and dispositive power over the shares held by the
    Berkeley Family Trust. By virtue of his relationship with his
    spouse, Muriel Van Dusen Berkeley, Alfred R. Berkeley may be
    deemed to share voting and dispositive power over the shares
    held by the Berkeley Family Trust. Mr.&#160;Berkeley is an
    affiliate of a broker-dealer, purchased the securities in the
    ordinary course of business and, at the time of the purchase of
    the securities to be resold, had no agreements or
    understandings, directly or indirectly, with any person to
    distribute the securities.</TD>
</TR>
    <FONT style="font-size: 10pt">
    </FONT>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 5,047,562&#160;shares held by Camden Partners
    Strategic Fund&#160;III, L.P., 209,850&#160;shares held by
    Camden Partners Strategic
    <FONT style="white-space: nowrap">Fund&#160;III-A,</FONT>
    L.P., 115,000 held by Muriel Van Dusen Berkeley and Richard M.
    Berkeley, as Trustees of the 2009 Berkeley Family Resource Trust
    dated
    <FONT style="white-space: nowrap">12/11/2009</FONT>
    and 115,000 held by Richard M. Berkeley, as Trustee of the
    Alfred and Muriel Berkeley Survivorship Trust dated
    <FONT style="white-space: nowrap">12/1/2005.</FONT>
    Camden Partners Strategic Manager, LLC, or Camden Partners
    Strategic Manager, is the managing member of Camden Partners
    Strategic III, LLC, or Camden Partners Strategic III, which is
    the general partner of each of Camden Partners Strategic
    Fund&#160;III, L.P. and Camden Partners Strategic Fund III-A,
    L.P., or the Camden Funds. Because Richard M. Berkeley is the
    managing member of Camden Partners Strategic Manager, Camden
    Partners Strategic Manager is the managing member of Camden
    Partners Strategic&#160;III and Camden Partners
    Strategic&#160;III is the general partner of each of the Camden
    Funds, Mr.&#160;Berkeley may be deemed to have voting and
    dispositive power over the shares held by the Camden Funds.
    Mr.&#160;Berkeley and Muriel Van Dusen Berkeley are the trustees
    of the 2009 Berkeley Family Resource Trust dated
    <FONT style="white-space: nowrap">12/11/2009,</FONT>
    or the Berkeley Family Trust, and share voting and dispositive
    power over the shares held by the Berkeley Family Trust.
    Mr.&#160;Berkeley is the trustee of the Alfred and Muriel
    Berkeley Survivorship Trust dated
    <FONT style="white-space: nowrap">12/1/2005,</FONT>
    or the Berkeley Survivorship Trust, and has voting and
    dispositive power over the shares held by the Berkeley
    Survivorship Trust. Mr.&#160;Berkeley disclaims beneficial
    ownership of shares </TD>
</TR>
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</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    125
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    held by the Berkeley Family Trust and the Berkeley Survivorship
    Trust, except to the extent of any pecuniary interest therein.
    Mr.&#160;Berkeley is an affiliate of a broker-dealer, purchased
    the securities in the ordinary course of business and, at the
    time of the purchase of the securities to be resold, had no
    agreements or understandings, directly or indirectly, with any
    person to distribute the securities. The address of the Camden
    Funds and their affiliated entities and individuals is
    500&#160;E.&#160;Pratt Street, Suite&#160;1200, Baltimore,
    Maryland 21202. For a discussion of our material relationships
    with Camden Partners and its affiliated entities, see
    &#147;Certain Relationships and Related Party
    Transactions.&#148; The Camden Funds are not affiliated with
    Camden Property Trust.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 6,000&#160;shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Mr.&#160;Gyenes that are fully vested and exercisable within
    60&#160;days of April&#160;1, 2010 and 13,333 restricted shares
    of our common stock that are subject to forfeiture to us, which
    forfeiture restriction lapses as to 666.65&#160;shares on the
    first day of each calendar quarter beginning July&#160;1, 2010
    and as to the remaining 3,333.25&#160;shares on April&#160;1,
    2014, provided that Mr.&#160;Gyenes remains a director on each
    such applicable date.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (11) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 116,890&#160;shares held by Jeffrey T. Leeds,
    1,820,015&#160;shares held by Advance Capital Offshore Partners,
    L.P. and 5,803,285&#160;shares held by Advance Capital Partners,
    L.P. Because Mr.&#160;Leeds is a member of Advance Capital
    Management, LLC, which is the general partner of Advance Capital
    Associates, L.P., which is the general partner of Advance
    Capital Partners, L.P. and Advance Capital Offshore Associates,
    LDC, which is the general partner of Advance Capital Offshore
    Partners, L.P., Mr.&#160;Leeds may be deemed to have voting and
    dispositive power of the shares held by Advance Capital Offshore
    Partners, L.P. and Advance Capital Partners, L.P. For a
    discussion of our material relationships with Mr.&#160;Leeds,
    see &#147;Certain Relationships and Related Party
    Transactions.&#148; </TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (12) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 14,471,929&#160;shares held of record by our
    directors and executive officers, of which 32,292&#160;shares
    are subject to a repurchase right held by us that lapses with
    respect to an additional 1,041&#160;shares on the last day of
    each calendar month provided that Mr.&#160;A. Berkeley remains
    one of our directors on each such applicable date, 26,666 are
    subject to forfeiture to us, which forfeiture restriction lapses
    as to 666.65 shares on the first day of each calendar quarter
    beginning July&#160;1, 2010 and 3,333.25&#160;shares on
    April&#160;1, 2014, provided that Mr.&#160;A.&#160;Berkeley
    remains one of our directors on each such applicable date, and
    as to 666.65&#160;shares on the first day of each calendar
    quarter beginning July&#160;1, 2010 and 3,333.25&#160;shares on
    April&#160;1, 2014, provided that Mr.&#160;Gyenes remains one of
    our directors on each such applicable date,
    1,519,125&#160;shares issuable upon the exercise of options held
    by our directors and executive officers that are fully vested
    and exercisable within 60&#160;days of April&#160;1, 2010 and
    88,704,179&#160;shares held by entities over which our directors
    and executive officers may be deemed to have voting or
    dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (13) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 5,047,562&#160;shares held by Camden Partners
    Strategic Fund&#160;III, L.P. and 209,850&#160;shares held by
    Camden Partners Strategic
    <FONT style="white-space: nowrap">Fund&#160;III-A,</FONT>
    L.P. Camden Partners Strategic Manager, LLC, or Camden Partners
    Strategic Manager, is the managing member of Camden Partners
    Strategic III, LLC, or Camden Partners Strategic III, which is
    the general partner of Camden Partners Strategic Fund&#160;III,
    L.P. and Camden Partners Strategic
    <FONT style="white-space: nowrap">Fund&#160;III-A,</FONT>
    L.P., or the Camden Funds. Because Richard M. Berkeley, Don
    Hughes, Dick Johnston and David Warnock are the managing members
    of Camden Partners Strategic Manager, Camden Partners Strategic
    Manager is managing member of Camden Partners Strategic&#160;III
    and Camden Partners Strategic&#160;III is the general partner of
    the Camden Funds, Messrs.&#160;Berkeley, Hughes, Johnston and
    Warnock may be deemed to have voting and dispositive power over
    the shares held by the Camden Funds. The address of the Camden
    Funds and their affiliated entities and individuals is
    500&#160;E.&#160;Pratt Street, Suite&#160;1200, Baltimore,
    Maryland 21202. For a discussion of our material relationships
    with the Camden Funds and affiliated entities, see &#147;Certain
    Relationships and Related Party Transactions.&#148; The Camden
    Funds are not affiliated with Camden Property Trust.</TD>
</TR>

</TABLE>
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    <BR>
    126
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the rights of our common stock and
    preferred stock and certain provisions of our amended and
    restated certificate of incorporation and amended and restated
    bylaws, as we expect they will be in effect upon the completion
    of this offering. For more detailed information, please see our
    amended and restated certificate of incorporation and amended
    and restated bylaws, to be effective upon completion of this
    offering, which will be filed as exhibits to the registration
    statement of which this prospectus is a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Immediately following the completion of this offering, our
    authorized capital stock will consist
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares,
    with a par value of $0.001 per share, of which:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    are designated as common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    are designated as preferred stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, assuming the conversion of all
    outstanding shares of our convertible preferred stock into
    common stock, we had outstanding 111,009,108&#160;shares of
    common stock, held of record by 92&#160;stockholders. In
    addition, as of December&#160;31, 2009, we had outstanding
    options to acquire 15,857,456 shares of common stock and an
    outstanding warrant to purchase 25,000&#160;shares of common
    stock at $1.00 per share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of our common stock are entitled to one vote per
    share on all matters to be voted on by the stockholders. Subject
    to preferences that may be applicable to any outstanding shares
    of preferred stock, holders of common stock are entitled to
    receive ratably such dividends as may be declared by our board
    of directors out of funds legally available therefor. In the
    event we liquidate, dissolve or wind up, holders of common stock
    are entitled to share ratably in all assets remaining after
    payment of liabilities and the liquidation preferences of any
    outstanding shares of preferred stock. Holders of common stock
    have no preemptive, conversion or subscription rights. There are
    no redemption or sinking fund provisions applicable to the
    common stock. All outstanding shares of common stock are, and
    all shares of common stock to be outstanding upon completion of
    this offering will be, fully paid and nonassessable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has the authority, without further action
    by the stockholders, to issue from time to time the preferred
    stock in one or more series, to fix the number of shares of any
    such series and the designation thereof and to fix the rights,
    preferences, privileges and restrictions granted to or imposed
    upon such preferred stock, including dividend rights, dividend
    rate, conversion rights, voting rights, rights and terms of
    redemption, redemption prices, liquidation preference and
    sinking fund terms, any or all of which may be greater than or
    senior to the rights of the common stock. The issuance of
    preferred stock could adversely affect the voting power of
    holders of common stock and reduce the likelihood that such
    holders will receive dividend payments and payments upon
    liquidation. Such issuance could have the effect of decreasing
    the market price of our common stock. The issuance of preferred
    stock or even the ability to issue preferred stock could have
    the effect of delaying, deterring or preventing a change in
    control. We have no present plans to issue any shares of
    preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, we had a warrant outstanding to
    purchase 25,000&#160;shares of our common stock at an exercise
    price per share of $1.00. The warrant was net exercised for
    17,581&#160;shares on March&#160;18, 2010.
</DIV>
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    <BR>
    127
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Second
    Amended and Restated Registration Rights Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have entered into a Second Amended and Restated Registration
    Rights Agreement dated February&#160;22, 2008, or the
    Registration Rights Agreement, with certain of our stockholders.
    Subject to the terms of this agreement, the holders of an
    aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock, or their permitted transferees, are
    entitled to rights with respect to the registration of these
    shares under the Securities Act. These rights include demand
    registration rights, short-form registration rights and
    piggyback registration rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the terms of the Registration
    Rights Agreement is intended as a summary only and is qualified
    in its entirety by reference to the Registration Rights
    Agreement filed as an exhibit to the registration statement of
    which this prospectus is a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Demand registration rights.</I>&#160;&#160;Under the terms of
    the Registration Rights Agreement, the holders of a majority of
    our then outstanding Series&#160;A Convertible Preferred Stock
    and the holders of a majority of our then outstanding
    Series&#160;A1 Convertible Preferred Stock each may make a
    written request to us for the registration of the offer and sale
    of all or part of the shares having registration rights, or
    registrable securities, under the Securities Act if the amount
    of registrable securities to be registered has an aggregate
    market value, based upon the offering price to the public, equal
    to at least $10&#160;million. We will be required, upon such
    written request, to deliver notice of such registration request
    to the other holders of registrable securities within ten days
    after our receipt of the request and to use our best efforts to
    effect the requested registration within 90&#160;days after we
    have given written notice. We are required to effect only two
    registrations pursuant to this provision of the registration
    agreement at the request of holders of a majority of the
    Series&#160;A Convertible Preferred Stock and one registration
    pursuant to this provision of the registration statement at the
    request of holders of a majority of the Series&#160;A1
    Convertible Preferred Stock. We are not required to effect a
    demand registration prior to six months after the completion of
    this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Short-form&#160;registration rights.</I>&#160;&#160;If we are
    eligible to file a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    or any successor form with similar &#147;short-form&#148;
    disclosure requirements, the holders of registrable securities
    under the Registration Rights Agreement have unlimited rights to
    request registration of their shares on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    provided that the registrable securities to be registered have
    an aggregate market value, based upon the offering price to the
    public, equal to at least $2.5&#160;million. We are not required
    to effect more than two short form registrations in any
    <FONT style="white-space: nowrap">12-month</FONT>
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Piggyback registration rights.</I>&#160;&#160;If we register
    any of our securities either for our own account or for the
    account of other security holders, the holders of the
    registrable securities under the Registration Rights Agreement
    are entitled to include their registrable securities in the
    registration subject to certain exceptions relating to employee
    benefit plans and mergers and acquisitions. The managing
    underwriters of any underwritten offering may limit the number
    of registrable securities included in the underwritten offering
    if the underwriters believe that including these shares would
    materially or adversely affect the offering subject to certain
    limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expenses.</I>&#160;&#160;All fees, costs and expenses of
    registrations pursuant to the Registration Rights Agreement will
    be borne by us except for the underwriting fees, discounts or
    commissions attributable to the sale of the registrable
    securities, which shall be borne by the holders selling such
    registrable securities in the registration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">1998&#160;Shareholders
    Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also entered into a Shareholders Agreement with certain
    of our stockholders dated December&#160;1, 1998, as amended, or
    the 1998 Shareholders Agreement, pursuant to which the holders
    of an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock, or their permitted transferees, are
    entitled to piggyback registration rights for registrations
    occurring after a public market for shares of our common stock
    has been established. Under the terms of the
    1998&#160;Shareholders Agreement, a public market for shares of
    our common stock has been established when at least 15% of our
    common stock has been sold pursuant to one or more effective
    registration statements under the Securities Act and our common
    stock is publicly traded in the over-the-counter market or is
    listed on a national securities exchange.
</DIV>
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    <BR>
    128
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the registration rights provisions
    included in the 1998&#160;Shareholders Agreement is intended as
    a summary only and is qualified in its entirety by reference to
    the 1998 Shareholders Agreement filed as an exhibit to the
    registration statement of which this prospectus is a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Piggyback registration rights.</I>&#160;&#160;Under the terms
    of the 1998&#160;Shareholders Agreement, if we register shares
    of our common stock for sale to the public after the
    establishment of a public market for the shares, the holders of
    shares having registration rights under the 1998 Shareholders
    Agreement, or registrable shares, are entitled to include their
    registrable shares in the registration subject to certain
    exceptions relating to employee benefit plans and mergers and
    acquisitions. The managing underwriters of any underwritten
    offering may limit the number of registrable shares included in
    the underwritten offering if the underwriters believe that
    including these shares would materially or adversely affect the
    offering subject to certain limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expenses.</I>&#160;&#160;All fees, costs and expenses of
    piggyback registrations pursuant to the 1998&#160;Shareholders
    Agreement will be borne by us except for the fees of counsel to
    the selling holders and underwriting fees, discounts or
    commissions attributable to the sale of the registrable shares,
    which will be borne by the selling holders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rights of
    First Offer,
    <FONT style="white-space: nowrap">Co-Sale</FONT> and
    Appraisal</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the 1998&#160;Shareholders Agreement, Seren Capital,
    Ltd., an entity affiliated with Stephen T. Winn, is entitled to
    a right of first offer with respect
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of our common stock and holders of an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of our common stock, or their permitted transferees, are
    entitled to co-sale and appraisal rights with respect to their
    shares in certain circumstances. These rights terminate if a
    public market for shares of our common stock has been
    established. Under the terms of our 1998&#160;Shareholders
    Agreement, a public market for shares of our common stock has
    been established when at least 15% of our common stock then
    outstanding has been sold pursuant to one or more effective
    registration statements under the Securities Act and our common
    stock is publicly traded in the over-the-counter market or is
    listed on a national securities exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the rights of first offer, co-sale
    and appraisal included in the 1998&#160;Shareholders Agreement
    is intended as a summary only and is qualified in its entirety
    by reference to the 1998&#160;Shareholders Agreement filed as an
    exhibit to the registration statement to which this prospectus
    is part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a party to the 1998&#160;Shareholders Agreement desires to
    transfer shares of our common stock to a third party, such
    stockholder is required first to give notice to Seren Capital,
    Ltd. and to offer to sell to Seren Capital, Ltd. the shares of
    common stock such stockholder proposes to transfer. Seren
    Capital, Ltd. is controlled by Stephen T. Winn.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the 1998&#160;Shareholders Agreement, if
    Stephen T. Winn or entities or individuals affiliated with him
    propose to sell any of their shares of common stock, they must
    first offer to the other stockholders who are party to the
    1998&#160;Shareholders Agreement an opportunity to sell their
    respective pro rata share of the shares proposed to be sold in
    such proposed sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if Stephen T. Winn or entities or individuals
    affiliated with him, together with any other party or parties to
    the 1998&#160;Shareholders Agreement collectively owning over
    50% of our outstanding common stock determine to sell their
    common stock to a third party, whether by sale, merger or
    consolidation, or to cause us to sell all or substantially all
    of our assets to a third party, such stockholders may, at their
    option, require the other stockholders who are parties to the
    1998&#160;Shareholders Agreement to vote their shares in favor
    of such transaction and sell their shares in such transaction.
    If any stockholder who is a party to the 1998&#160;Shareholders
    Agreement is required to sell their shares in connection with a
    sale of our company and disagrees with the terms of such sale,
    that stockholder may obtain an appraisal of his or her common
    stock and, depending on the result of the appraisal, may cause
    us to pay that stockholder the appraised price of his or her
    common stock and the costs of the appraisal.
</DIV>
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    <BR>
    129
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Takeover
    Effects of Delaware Law and Our Certificate of Incorporation and
    Bylaws</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain provisions of Delaware law and our amended and restated
    certificate of incorporation and our amended and restated
    bylaws, as we expect they will be in effect upon the completion
    of this offering, contain provisions that could have the effect
    of delaying, deferring or discouraging another party from
    acquiring control of us. These provisions, which are summarized
    below, may have the effect of discouraging coercive takeover
    practices and inadequate takeover bids. These provisions are
    also designed, in part, to encourage persons seeking to acquire
    control of us to first negotiate with our board of directors. We
    believe that the benefits of increased protection of our
    potential ability to negotiate with an unfriendly or unsolicited
    acquirer outweigh the disadvantages of discouraging a proposal
    to acquire us because negotiation of these proposals could
    result in an improvement of their terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Undesignated preferred stock.</I>&#160;&#160;As discussed
    above, our board of directors has the ability to issue preferred
    stock with voting or other rights or preferences that could
    impede the success of any attempt to change control of us. These
    and other provisions may have the effect of deferring hostile
    takeovers or delaying changes in control or management of our
    company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limits on ability of stockholders to act by written consent
    or call a special meeting</I>. We expect to provide in our
    amended and restated certificate of incorporation that our
    stockholders may not act by written consent. This limit on the
    ability of our stockholders to act by written consent may
    lengthen the amount of time required to take stockholder
    actions. As a result, a holder controlling a majority of our
    capital stock would not be able to amend our bylaws or remove
    directors without holding a meeting of our stockholders called
    in accordance with our amended and restated bylaws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we expect our amended and restated bylaws will
    provide that special meetings of the stockholders may be called
    only by the chairperson of our board of directors, our Chief
    Executive Officer, our president (in the absence of our Chief
    Executive Officer) or our board of directors. We expect our
    amended and restated bylaws will prohibit a stockholder from
    calling a special meeting, which may delay the ability of our
    stockholders to force consideration of a proposal or for holders
    controlling a majority of our capital stock to take any action,
    including the removal of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Requirements for advance notification of stockholder
    nominations and proposals</I>. We expect our amended and
    restated bylaws will establish advance notice procedures with
    respect to stockholder proposals and the nomination of
    candidates for election as directors, other than nominations
    made by or at the direction of our board of directors or a
    committee of our board of directors. However, we expect that our
    amended and restated bylaws may have the effect of precluding
    the conduct of certain business at a meeting if the proper
    procedures are not followed. We expect that these provisions may
    also discourage or deter a potential acquirer from conducting a
    solicitation of proxies to elect the acquirer&#146;s own slate
    of directors or otherwise attempting to obtain control of our
    company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Board vacancies filled only by majority of directors then in
    office.</I>&#160;&#160;Vacancies and newly created seats on our
    board of directors may be filled only by our board of directors.
    Only our board of directors may determine the number of
    directors on our board of directors. The inability of
    stockholders to determine the number of directors or to fill
    vacancies or newly created seats on our board of directors makes
    it more difficult to change the composition of our board of
    directors, but these provisions promote a continuity of existing
    management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>No cumulative voting.</I>&#160;&#160;The Delaware General
    Corporation Law provides that stockholders are not entitled to
    the right to cumulate votes in the election of directors unless
    our certificate of incorporation provides otherwise. Our amended
    and restated certificate of incorporation and amended and
    restated bylaws do not expressly provide for cumulative voting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Directors removed only for cause.</I>&#160;&#160;We expect
    that our amended and restated certificate of incorporation will
    provide that directors may be removed by stockholders only for
    cause.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Delaware anti-takeover statute.</I>&#160;&#160;We are subject
    to the provisions of Section&#160;203 of the Delaware General
    Corporation Law regulating corporate takeovers. In general,
    Section&#160;203 prohibits a publicly held Delaware corporation
    from engaging, under certain circumstances, in a business
    combination with an interested
</DIV>
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    <BR>
    130
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    stockholder for a period of three years following the date on
    which the person became an interested stockholder unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Prior to the date of the transaction, the board of directors of
    the corporation approved either the business combination or the
    transaction which resulted in the stockholder becoming an
    interested stockholder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Upon completion of the transaction that resulted in the
    stockholder becoming an interested stockholder, the interested
    stockholder owned at least 85% of the voting stock of the
    corporation outstanding at the time the transaction commenced,
    excluding for purposes of determining the voting stock
    outstanding, but not the outstanding voting stock owned by the
    interested stockholder, (1)&#160;shares owned by persons who are
    directors and also officers and (2)&#160;shares owned by
    employee stock plans in which employee participants do not have
    the right to determine confidentially whether shares held
    subject to the plan will be tendered in a tender or exchange
    offer;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    At or subsequent to the date of the transaction, the business
    combination is approved by the board of directors of the
    corporation and authorized at an annual or special meeting of
    stockholders, and not by written consent, by the affirmative
    vote of at least
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the outstanding voting stock that is not owned by the
    interested stockholder.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, a business combination includes a merger, asset or
    stock sale, or other transaction resulting in a financial
    benefit to the interested stockholder. An interested stockholder
    is a person who, together with affiliates and associates, owns
    or, within three years prior to the determination of interested
    stockholder status, did own 15% or more of a corporation&#146;s
    outstanding voting stock. We expect the existence of this
    provision to have an anti-takeover effect with respect to
    transactions our board of directors does not approve in advance.
    We also anticipate that Section&#160;203&#160;may also
    discourage attempts that might result in a premium over the
    market price for the shares of common stock held by stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provisions of Delaware law and our amended and restated
    certificate of incorporation and our amended and restated
    bylaws, as we expect they will be in effect upon the completion
    of this offering, could have the effect of discouraging others
    from attempting hostile takeovers and, as a consequence, they
    may also inhibit temporary fluctuations in the market price of
    our common stock that often result from actual or rumored
    hostile takeover attempts. These provisions may also have the
    effect of preventing changes in our management. It is possible
    that these provisions could make it more difficult to accomplish
    transactions that stockholders may otherwise deem to be in their
    best interests.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of this offering the transfer agent and
    registrar for our common stock will be Computershare Trust
    Company, N.A. The transfer agent&#146;s address is 250 Royall
    Street, Canton, Massachusetts 02021 and its telephone number is
    (800) 662-7237.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    NASDAQ Global Market Listing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to apply to list the shares of our common stock on the
    NASDAQ Global Market under the symbol
    &#147;&#160;&#160;&#160;&#160;.&#148;
</DIV>
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    <BR>
    131
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES
    ELIGIBLE FOR FUTURE SALE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no public market for
    shares of our common stock. Future sales of substantial amounts
    of shares of our common stock, including shares issued upon the
    exercise of outstanding options or warrants, in the public
    market after this offering, or the possibility of these sales
    occurring, could adversely affect the prevailing market price
    for our common stock from time to time or impair our ability to
    raise equity capital in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering, a total
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock will be outstanding. Of these shares,
    all&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock sold in this offering by us, plus any shares
    sold upon exercise of the underwriters&#146; over-allotment
    option, will be freely tradable in the public market without
    restriction or further registration under the Securities Act,
    unless these shares are held by &#147;affiliates,&#148; as that
    term is defined in Rule&#160;144 under the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The
    remaining&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock will be &#147;restricted securities,&#148; as
    that term is defined in Rule&#160;144 under the Securities Act.
    These restricted securities are eligible for public sale only if
    they are registered under the Securities Act or if they qualify
    for an exemption from registration under Rules&#160;144 or 701
    under the Securities Act, which are summarized below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described below and the provisions of Rules&#160;144
    and 701 under the Securities Act, these restricted securities
    will be available for sale in the public market as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    On the date of this prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Between 90 and 180&#160;days (subject to extension) after the
    date of this prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    At various times beginning more than 180&#160;days (subject to
    extension) after the date of this prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In
    addition,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock will be eligible for sale upon exercise of
    vested options 180&#160;days following the effective date of
    this offering, subject to extension as described under
    &#147;Underwriting.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rule&#160;144</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, under Rule&#160;144 as currently in effect, once we
    have been subject to public company reporting requirements for
    at least 90&#160;days, a person who is not deemed to have been
    one of our affiliates for purposes of the Securities Act at any
    time during 90&#160;days preceding a sale and who has
    beneficially owned the shares proposed to be sold for at least
    six months, including the holding period of any prior owner
    other than our affiliates, is entitled to sell such shares
    without complying with the manner of sale, volume limitation or
    notice provisions of Rule&#160;144, subject to compliance with
    the public information requirements of Rule&#160;144. If such a
    person has beneficially owned the shares proposed to be sold for
    at least one year, including the holding period of any prior
    owner other than our affiliates, then such person is entitled to
    sell such shares without complying with any of the requirements
    of Rule&#160;144.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, under Rule&#160;144 as currently in effect, once we
    have been subject to public company reporting requirements for
    90&#160;days, an affiliate of ours who owns shares that were
    acquired from us or an affiliate of ours at least six months
    prior to the proposed sale is entitled to sell, upon the
    expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described below, within any three-month period
    beginning 90&#160;days after the date of this prospectus, a
    number of shares that does not exceed the greater of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    1% of the number of shares of common stock then outstanding,
    which will equal
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    immediately after the offering;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the average weekly trading volume of the common stock during the
    four calendar weeks preceding the filing of a notice on
    Form&#160;144 with respect to such sale.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales under Rule&#160;144 by our affiliates or persons selling
    shares on behalf of our affiliates are also subject to certain
    manner of sale provisions and notice requirements and to the
    availability of current public information about us.
</DIV>
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    <BR>
    132
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rule&#160;701</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rule&#160;701 generally allows a stockholder who purchased
    shares of our common stock pursuant to a written compensatory
    plan or contract in compliance with Rule&#160;701 and who is not
    deemed to have been our affiliate during the immediately
    preceding 90&#160;days to sell these shares in reliance upon
    Rule&#160;144, but without being required to comply with the
    public information, holding period, volume limitation or notice
    provisions of Rule&#160;144. Rule&#160;701 permits our
    affiliates who purchase shares of our common stock pursuant to a
    written compensatory plan or contract in compliance with
    Rule&#160;701 to sell these shares in reliance upon
    Rule&#160;144 without complying with the holding period
    requirements of Rule&#160;144. All holders of
    Rule&#160;701&#160;shares, however, are required to wait until
    90&#160;days after the date of this prospectus before selling
    such shares pursuant to Rule&#160;701.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, all of our officers and directors and holders of
    substantially all of our outstanding stock and options have
    agreed that, without the prior written consent of Credit Suisse
    Securities (USA) LLC and Deutsche Bank Securities Inc., we and
    they will not, during the period ending 180&#160;days after the
    date of this prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    offer, sell, contract to sell, pledge or otherwise dispose of,
    directly or indirectly, any shares of our common stock or
    securities convertible into or exchangeable or exercisable for
    any shares of our common stock, enter into a transaction that
    would have the same effect,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any swap, hedge or other arrangement that transfers,
    in whole or in part, any of the economic consequences of
    ownership of our common stock,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    whether any of these transactions are to be settled by delivery
    of our common stock or other securities, in cash or otherwise.
    This agreement is subject to certain exceptions, and is also
    subject to extension for up to an additional 34&#160;days, as
    set forth under &#147;Underwriting.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of this offering, the holders
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock or their transferees will be entitled to various
    rights with respect to the registration of these shares under
    the Securities Act. Registration of these shares under the
    Securities Act would result in these shares becoming fully
    tradable without restriction under the Securities Act
    immediately upon the effectiveness of the registration, except
    for shares purchased by affiliates. See &#147;Description of
    Capital Stock&#160;&#151; Registration Rights&#148; for
    additional information.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Statements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to file a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    under the Securities Act covering all of the shares of common
    stock subject to options outstanding or reserved for issuance
    under our stock plans. We expect to file this registration
    statement as soon as practicable after this offering. However,
    none of the shares registered on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    will be eligible for resale until the expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements to which they are subject.
</DIV>
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    <BR>
    133
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    U.S. FEDERAL INCOME TAX AND ESTATE TAX<BR>
    CONSEQUENCES TO
    <FONT style="white-space: nowrap">NON-U.S.</FONT>
    HOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the material U.S.&#160;federal
    income tax and estate tax consequences of the ownership and
    disposition of our common stock to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders,</FONT>
    but does not purport to be a complete analysis of all the
    potential tax considerations relating thereto. This summary is
    based upon the provisions of the Internal Revenue Code, Treasury
    regulations promulgated thereunder, administrative rulings and
    judicial decisions, all as of the date hereof. These authorities
    may be changed, possibly retroactively, so as to result in
    U.S.&#160;federal income or estate tax consequences different
    from those set forth below. We have not sought any ruling from
    the Internal Revenue Service, or the IRS, with respect to the
    statements made and the conclusions reached in the following
    summary, and there can be no assurance that the IRS will agree
    with such statements and conclusions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary also does not address the tax considerations
    arising under the laws of any
    <FONT style="white-space: nowrap">non-U.S.,</FONT>
    state or local jurisdiction or under U.S.&#160;federal gift and
    estate tax laws, except to the limited extent below. In
    addition, this discussion does not address tax considerations
    applicable to an investor&#146;s particular circumstances or to
    investors that may be subject to special tax rules, including,
    without limitation:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    banks, insurance companies or other financial institutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons subject to the alternative minimum tax;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax-exempt organizations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    controlled foreign corporations, passive foreign investment
    companies and corporations that accumulate earnings to avoid
    U.S.&#160;federal income tax;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dealers in securities or currencies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    traders in securities that elect to use a mark-to-market method
    of accounting for their securities holdings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons that own, or are deemed to own, more than five percent
    of our capital stock (except to the extent specifically set
    forth below);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain former citizens or long-term residents of the United
    States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons who hold our common stock as a position in a hedging
    transaction, &#147;straddle,&#148; &#147;conversion
    transaction&#148; or other risk reduction transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons who do not hold our common stock as a capital asset
    (within the meaning of Section&#160;1221 of the Internal Revenue
    Code;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons deemed to sell our common stock under the constructive
    sale provisions of the Internal Revenue Code.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if a partnership or entity classified as a
    partnership for U.S.&#160;federal income tax purposes holds our
    common stock, the tax treatment of a partner generally will
    depend on the status of the partner and upon the activities of
    the partnership. Accordingly, partnerships that hold our common
    stock, and partners in such partnerships, should consult their
    tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You are urged to consult your tax advisor with respect to the
    application of the U.S.&#160;federal income tax laws to your
    particular situation, as well as any tax consequences of the
    purchase, ownership and disposition of our common stock arising
    under the U.S. federal estate or gift tax rules or under the
    laws of any state, local,
    <FONT style="white-space: nowrap">non-U.S.&#160;or</FONT>
    other taxing jurisdiction or under any applicable tax treaty.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holder Defined</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this discussion, you are a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    if you are any holder other than:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an individual citizen or resident of the United States;
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    134
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation or other entity taxable as a corporation created
    or organized in the United States or under the laws of the
    United States or any political subdivision thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate whose income is subject to U.S.&#160;federal income
    tax regardless of its source;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust (x)&#160;whose administration is subject to the primary
    supervision of a U.S.&#160;court and which has one or more
    U.S.&#160;persons who have the authority to control all
    substantial decisions of the trust or (y)&#160;which has made an
    election to be treated as a U.S.&#160;person.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not made any distributions on our common stock, and we
    do not plan to make any distributions for the foreseeable
    future. However, if we do make distributions on our common
    stock, those payments will constitute dividends for
    U.S.&#160;tax purposes to the extent paid from our current or
    accumulated earnings and profits, as determined under
    U.S.&#160;federal income tax principles. To the extent those
    distributions exceed both our current and our accumulated
    earnings and profits, they will constitute a return of capital
    and will first reduce your basis in our common stock, but not
    below zero, and then will be treated as gain from the sale of
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any dividend paid to you generally will be subject to
    U.S.&#160;withholding tax either at a rate of 30% of the gross
    amount of the dividend or such lower rate as may be specified by
    an applicable income tax treaty. In order to receive a reduced
    treaty rate, you must provide us with an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or other appropriate version of IRS
    <FONT style="white-space: nowrap">Form&#160;W-8</FONT>
    certifying qualification for the reduced rate. A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of shares of our common stock eligible for a reduced rate of
    U.S.&#160;withholding tax pursuant to an income tax treaty may
    obtain a refund of any excess amounts withheld by filing an
    appropriate claim for refund with the IRS. If the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    holds the stock through a financial institution or other agent
    acting on the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    behalf, the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will be required to provide appropriate documentation to the
    agent, which then will be required to provide certification to
    us or our paying agent, either directly or through other
    intermediaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends received by you that are effectively connected with
    your conduct of a U.S.&#160;trade or business (and, if an income
    tax treaty applies, such dividend is attributable to a permanent
    establishment maintained by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    in the United States) are exempt from such withholding tax. In
    order to obtain this exemption, you must provide us with an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    or other applicable IRS
    <FONT style="white-space: nowrap">Form&#160;W-8</FONT>
    properly certifying such exemption. Such effectively connected
    dividends, although not subject to withholding tax, are taxed at
    the same graduated rates applicable to U.S.&#160;persons, net of
    certain deductions and credits, subject to an applicable income
    tax treaty providing otherwise. In addition, if you are a
    corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    dividends you receive that are effectively connected with your
    conduct of a U.S.&#160;trade or business may also be subject to
    a branch profits tax at a rate of 30% or such lower rate as may
    be specified by an applicable income tax treaty.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Gain on
    Disposition of Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You generally will not be required to pay U.S.&#160;federal
    income tax on any gain realized upon the sale or other
    disposition of our common stock unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the gain is effectively connected with your conduct of a
    U.S.&#160;trade or business (and, if an income tax treaty
    applies, the gain is attributable to a permanent establishment
    maintained by you in the United States);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you are an individual who is present in the United States for a
    period or periods aggregating 183&#160;days or more during the
    calendar year in which the sale or disposition occurs and
    certain other conditions are met;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our common stock constitutes a U.S.&#160;real property interest
    by reason of our status as a U.S.&#160;real property holding
    corporation, or a USRPHC, for U.S.&#160;federal income tax
    purposes at any time within
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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    <BR>
    135
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    the shorter of the five-year period preceding the disposition or
    your holding period for our common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we are not currently and will not become a
    USRPHC. However, because the determination of whether we are a
    USRPHC depends on the fair market value of our U.S.&#160;real
    property relative to the fair market value of our other business
    assets, there can be no assurance that we will not become a
    USRPHC in the future. Even if we become a USRPHC, however, as
    long as our common stock is regularly traded on an established
    securities market, such common stock will be treated as
    U.S.&#160;real property interests only if you actually or
    constructively hold more than five percent of such regularly
    traded common stock at any time during the applicable period
    that is specified in the Internal Revenue Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    described in the first bullet above, you will be required to pay
    tax on the net gain derived from the sale under regular
    graduated U.S.&#160;federal income tax rates, and corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    described in the first bullet above may be subject to the branch
    profits tax at a 30% rate or such lower rate as may be specified
    by an applicable income tax treaty. If you are an individual
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    described in the second bullet above, you will be required to
    pay a flat 30% tax on the gain derived from the sale, which tax
    may be offset by U.S.&#160;source capital losses (even though
    you are not considered a resident of the United States). You
    should consult any applicable income tax or other treaties that
    may provide for different rules.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Estate Tax</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock beneficially owned by an individual who is not
    a citizen or resident of the United States (as defined for U.S.
    federal estate tax purposes) at the time of death will generally
    be includable in the decedent&#146;s gross estate for U.S.
    federal estate tax purposes, unless an applicable estate tax
    treaty provides otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding and Information Reporting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, we must report annually to the IRS the amount of
    dividends paid to you, your name and address, and the amount of
    tax withheld, if any. A similar report is sent to you. Pursuant
    to applicable income tax treaties or other agreements, the IRS
    may make these reports available to tax authorities in your
    country of residence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payments of dividends or of proceeds on the disposition of stock
    made to you may be subject to information reporting and backup
    withholding at a current rate of 28% unless you establish an
    exemption, for example by properly certifying your
    <FONT style="white-space: nowrap">non-U.S.&#160;status</FONT>
    on a
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or another appropriate version of IRS
    <FONT style="white-space: nowrap">Form&#160;W-8.</FONT>
    Notwithstanding the foregoing, backup withholding and
    information reporting may apply if either we or our paying agent
    has actual knowledge, or reason to know, that you are a
    U.S.&#160;person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Backup withholding is not an additional tax; rather, the
    U.S.&#160;income tax liability of persons subject to backup
    withholding will be reduced by the amount of tax withheld. If
    withholding results in an overpayment of taxes, a refund or
    credit may generally be obtained from the IRS, provided that the
    required information is furnished to the IRS in a timely manner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recently
    Enacted Legislation Affecting Taxation of Our Common Stock Held
    By or Through Foreign Entities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Recently enacted legislation generally will impose a
    U.S.&#160;federal withholding tax of 30% on dividends and the
    gross proceeds of a disposition of our common stock paid after
    December&#160;31, 2012 to a foreign financial institution unless
    such institution enters into an agreement with the
    U.S.&#160;government to withhold on certain payments and to
    collect and provide to the U.S.&#160;tax authorities substantial
    information regarding U.S.&#160;account holders of such
    institution (which includes certain equity and debt holders of
    such institution, as well as certain account holders that are
    foreign entities with U.S.&#160;owners). The legislation also
    will generally impose a U.S.&#160;federal withholding tax of 30%
    on dividends and the gross proceeds of a disposition of our
    common stock paid after December&#160;31, 2012 to a
    non-financial foreign entity unless such entity provides the
    withholding agent with a certification identifying the direct
    and indirect U.S.&#160;owners of the entity. Under certain
    circumstances, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    might be eligible for refunds or credits of such taxes.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    136
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prospective investors are encouraged to consult with their own
    tax advisors regarding the possible implications of this
    legislation on their investment in our common stock.
    Stockholders are encouraged to consult with their own tax
    advisors regarding the possible implications of the legislation
    on their investment in our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The preceding discussion of U.S.&#160;federal tax
    considerations is for general information only. It is not tax
    advice. Each prospective investor should consult its own tax
    advisor regarding the particular U.S.&#160;federal, state and
    local and
    <FONT style="white-space: nowrap">Non-U.S.&#160;tax</FONT>
    consequences of purchasing, holding and disposing of our common
    stock, including the consequences of any proposed change in
    applicable laws.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    137
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms and subject to the conditions contained in an
    underwriting agreement
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 we and the selling stockholders have agreed to sell to the
    underwriters named below, for whom Credit Suisse Securities
    (USA) LLC and Deutsche Bank Securities Inc. are acting as
    representatives, the following respective numbers of shares of
    common stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Credit Suisse Securities (USA) LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deutsche Bank Securities Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    JMP Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pacific Crest Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    RBC Capital Markets Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William Blair&#160;&#038; Company, L.L.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriting agreement provides that the underwriters are
    obligated to purchase all the shares of common stock in the
    offering if any are purchased, other than those shares covered
    by the over-allotment option described below. The underwriting
    agreement also provides that if an underwriter defaults, the
    purchase commitments of non-defaulting underwriters may be
    increased or, in some circumstances, the offering may be
    terminated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling stockholders have granted to the underwriters a
    <FONT style="white-space: nowrap">30-day</FONT>
    option to purchase on a pro rata basis up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    additional shares at the initial public offering price less the
    underwriting discounts and commissions. The option may be
    exercised only to cover any over-allotments of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters propose to offer the shares of common stock
    initially at the public offering price on the cover page of this
    prospectus and to selling group members at that price less a
    selling concession of $&#160;&#160;&#160;&#160;&#160; per share.
    The underwriters and selling group members may allow a discount
    of $&#160;&#160;&#160;&#160;&#160; per share on sales to other
    broker/dealers. After the initial public offering, the
    representatives may change the public offering price and
    concession and discount to broker/dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the compensation and estimated
    expenses we and the selling stockholders will pay:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>With<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>With<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discounts and commissions paid by us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expenses payable by us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discounts and commissions paid by the selling
    stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expenses payable by the selling stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representatives have informed us that they do not expect
    sales to accounts over which the underwriters have discretionary
    authority to exceed 5% of the shares of common stock being
    offered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed that we will not offer, sell, contract to sell,
    pledge or otherwise dispose of, directly or indirectly, or file
    with the SEC a registration statement under the Securities Act
    relating to, any shares of our common stock or securities
    convertible into or exchangeable or exercisable for any shares
    of our common stock, or publicly disclose the intention to make
    any offer, sale, pledge, disposition or filing, without the
    prior written consent of the representatives for a period of
    180&#160;days after the date of this prospectus, except grants
    of, or issuances pursuant to the exercise of, employee stock
    options granted pursuant to the terms of a plan now in effect
    and limited issuances in connection with acquisitions and other
    strategic transactions so long as
</DIV>
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    138
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    such recipients execute a
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement in the form described below covering the remaining
    portion of the 180&#160;day-period after the date of this
    prospectus. However, in the event that either (1)&#160;during
    the last 17&#160;days of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    period, we release earnings results or material news or a
    material event relating to us occurs or (2)&#160;prior to the
    expiration of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    period, we announce that we will release earnings results during
    the <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    period, then in either case the expiration of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    will be extended until the expiration of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the date of the release of the earnings
    results or the occurrence of the material news or event, as
    applicable, unless the representatives waive, in writing, such
    an extension.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain exceptions, our officers, directors and
    holders of substantially all of our outstanding stock, options
    and warrants have agreed that they will not offer, sell,
    contract to sell, pledge or otherwise dispose of, directly or
    indirectly, any shares of our common stock or securities
    convertible into or exchangeable or exercisable for any shares
    of our common stock, enter into a transaction that would have
    the same effect, or enter into any swap, hedge or other
    arrangement that transfers, in whole or in part, any of the
    economic consequences of ownership of our common stock, whether
    any of these transactions are to be settled by delivery of our
    common stock or other securities, in cash or otherwise, or
    publicly disclose the intention to make any such offer, sale,
    pledge or disposition, or to enter into any transaction, swap,
    hedge or other arrangement, without, in each case, the prior
    written consent of the representatives for a period of
    180&#160;days after the date of this prospectus. However, in the
    event that either (1)&#160;during the last 17&#160;days of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    period, we release earnings results or material news or a
    material event relating to us occurs or (2)&#160;prior to the
    expiration of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    period, we announce that we will release earnings results during
    the <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    period, then in either case the expiration of the
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    will be extended until the expiration of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the date of the release of the earnings
    results or the occurrence of the material news or event, as
    applicable, unless the representatives waive, in writing, such
    an extension.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters have reserved for sale at the initial public
    offering price up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of the common stock for employees, directors and other persons
    associated with us who have expressed an interest in purchasing
    common stock in the offering. The number of shares available for
    sale to the general public in the offering will be reduced to
    the extent these persons purchase the reserved shares. Any
    reserved shares not so purchased will be offered by the
    underwriters to the general public on the same terms as the
    other shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and the selling stockholders have agreed to indemnify the
    underwriters against liabilities under the Securities Act, or
    contribute to payments that the underwriters may be required to
    make in that respect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to apply to list the shares of our common stock on the
    NASDAQ Global Market under the symbol
    &#147;&#160;&#160;&#160;&#160;.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the offering the underwriters may engage in
    stabilizing transactions, over-allotment transactions, syndicate
    covering transactions and penalty bids in accordance with
    Regulation&#160;M under the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Over-allotment transactions involve sales by the underwriters of
    shares in excess of the number of shares the underwriters are
    obligated to purchase, which creates a syndicate short position.
    The short position may be either a covered short position or a
    naked short position. In a covered short position, the number of
    shares over-allotted by the underwriters is not greater than the
    number of shares that they may purchase in the over-allotment
    option. In a naked short position, the number of shares involved
    is greater than the number of shares in the over-allotment
    option. The underwriters may close out any covered short
    position by either exercising their over-allotment option
    <FONT style="white-space: nowrap">and/or</FONT>
    purchasing shares in the open market.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Syndicate covering transactions involve purchases of the common
    stock in the open market after the distribution has been
    completed in order to cover syndicate short positions. In
    determining the source of shares to close out the short
    position, the underwriters will consider, among other things,
    the price of
</TD>
</TR>
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    139
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    shares available for purchase in the open market as compared to
    the price at which they may purchase shares through the
    over-allotment option. If the underwriters sell more shares than
    could be covered by the over-allotment option, a naked short
    position, the position can only be closed out by buying shares
    in the open market. A naked short position is more likely to be
    created if the underwriters are concerned that there could be
    downward pressure on the price of the shares in the open market
    after pricing that could adversely affect investors who purchase
    in the offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Penalty bids permit the representatives to reclaim a selling
    concession from a syndicate member when the common stock
    originally sold by the syndicate member is purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These stabilizing transactions, over-allotment transactions,
    syndicate covering transactions and penalty bids may have the
    effect of raising or maintaining the market price of our common
    stock or preventing or retarding a decline in the market price
    of the common stock. As a result the price of our common stock
    may be higher than the price that might otherwise exist in the
    open market. These transactions may be effected on the NASDAQ
    Global Market or otherwise and, if commenced, may be
    discontinued at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A prospectus in electronic format may be made available on the
    web sites maintained by one or more of the underwriters, or
    selling group members, if any, participating in this offering
    and one or more of the underwriters participating in this
    offering may distribute prospectuses electronically. The
    representatives may agree to allocate a number of shares to
    underwriters and selling group members for sale to their online
    brokerage account holders. Internet distributions will be
    allocated by the underwriters and selling group members that
    will make Internet distributions on the same basis as other
    allocations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, the underwriters may perform investment
    banking and advisory services for us for which they may receive
    customary fees and expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of common stock are offered for sale in those
    jurisdictions in the United States, Europe and elsewhere where
    it is lawful to make such offers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the underwriters has represented and agreed that it has
    not offered, sold or delivered and will not offer, sell or
    deliver any of the shares of common stock directly or
    indirectly, or distribute this prospectus or any other offering
    material relating to the shares of common stock, in or from any
    jurisdiction except under circumstances that will result in
    compliance with the applicable laws and regulations thereof and
    that will not impose any obligations on us except as set forth
    in the underwriting agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">European
    Economic Area</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In relation to each Member State of the European Economic Area
    that has implemented the Prospectus Directive, each, a Relevant
    Member State, each underwriter represents and agrees that with
    effect from and including the date on which the Prospectus
    Directive is implemented in that Relevant Member State, or the
    Relevant Implementation Date, it has not made and will not make
    an offer of Securities to the public in that Relevant Member
    State prior to the publication of a prospectus in relation to
    the Securities that has been approved by the competent authority
    in that Relevant Member State or, where appropriate, approved in
    another Relevant Member State and notified to the competent
    authority in that Relevant Member State, all in accordance with
    the Prospectus Directive, except that it may, with effect from
    and including the Relevant Implementation Date, make an offer of
    Securities to the public in that Relevant Member State at any
    time,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;to legal entities which are authorized or regulated to
    operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;to any legal entity which has two or more of
    (1)&#160;an average of at least 250&#160;employees during the
    last financial year; (2)&#160;a total balance sheet of more than
    &#128;43,000,000 and (3)&#160;an annual net turnover of more
    than &#128;50,000,000, as shown in its last annual or
    consolidated accounts;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;to fewer than 100 natural or legal persons (other than
    qualified investors as defined in the Prospectus Directive)
    subject to obtaining the prior consent of the manager for any
    such offer;&#160;or
</DIV>
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;in any other circumstances that do not require the
    publication by the Issuer of a prospectus pursuant to
    Article&#160;3 of the Prospectus Directive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of this provision, the expression an
    &#147;offer of Shares to the public&#148; in relation to any
    Shares in any Relevant Member State means the communication in
    any form and by any means of sufficient information on the terms
    of the offer and the Shares to be offered so as to enable an
    investor to decide to purchase or subscribe the Shares, as the
    same may be varied in that Member State by any measure
    implementing the Prospectus Directive in that Member State and
    the expression Prospectus Directive means Directive 2003/71/EC
    and includes any relevant implementing measure in each Relevant
    Member State.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Investors in the United Kingdom</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the underwriters severally represents, warrants and
    agrees as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;it has only communicated or caused to be communicated
    and will only communicate or cause to be communicated an
    invitation or inducement to engage in investment activity
    (within the meaning of section&#160;21 of the Financial Services
    and Markets Act 2000, or the FSMA) to persons who have
    professional experience in matters relating to investments
    falling with Article&#160;19(5) of the Financial Services and
    Markets Act 2000 (Financial Promotion) Order 2005 or in
    circumstances in which section&#160;21 of FSMA does not apply to
    us;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;it has complied with, and will comply with all
    applicable provisions of FSMA with respect to anything done by
    it in relation to the shares of common stock in, from or
    otherwise involving the United Kingdom.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of Japan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters will not offer or sell any of our common stock
    directly or indirectly in Japan or to, or for the benefit of any
    Japanese person or to others, for re-offering or re-sale
    directly or indirectly in Japan or to any Japanese person,
    except in each case pursuant to an exemption from the
    registration requirements of, and otherwise in compliance with,
    the Securities and Exchange Law of Japan and any other
    applicable laws and regulations of Japan. For purposes of this
    paragraph, &#147;Japanese person&#148; means any person resident
    in Japan, including any corporation or other entity organized
    under the laws of Japan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of Hong Kong</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters and each of their affiliates have not
    (i)&#160;offered or sold, and will not offer or sell, in Hong
    Kong, by means of any document, our common stock other than
    (a)&#160;to &#147;professional investors&#148; as defined in the
    Securities and Futures Ordinance (Cap.571) of Hong Kong and any
    rules made under that Ordinance or (b)&#160;in other
    circumstances which do not result in the document being a
    &#147;prospectus&#148; as defined in the Companies Ordinance
    (Cap. 32)&#160;of Hong Kong or which do not constitute an offer
    to the public within the meaning of that Ordinance or
    (ii)&#160;issued or had in its possession for the purposes of
    issue, and will not issue or have in its possession for the
    purposes of issue, whether in Hong Kong or elsewhere any
    advertisement, invitation or document relating to our common
    stock which is directed at, or the contents of which are likely
    to be accessed or read by, the public in Hong Kong (except if
    permitted to do so under the securities laws of Hong Kong) other
    than with respect to our securities which are or are intended to
    be disposed of only to persons outside Hong Kong or only to
    &#147;professional investors&#148; as defined in the Securities
    and Futures Ordinance and any rules made under that Ordinance.
    The contents of this document have not been reviewed by any
    regulatory authority in Hong Kong. You are advised to exercise
    caution in relation to the offer. If you are in any doubt about
    any of the contents of this document, you should obtain
    independent professional advice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of Singapore</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus or any other offering material relating to our
    common stock has not been and will not be registered as a
    prospectus with the Monetary Authority of Singapore, and the
    common stock will be offered in
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Singapore pursuant to exemptions under Section&#160;274 and
    Section&#160;275 of the Securities and Futures Act,
    Chapter&#160;289 of Singapore, or the Securities and Futures
    Act. Accordingly our common stock may not be offered or sold, or
    be the subject of an invitation for subscription or purchase,
    nor may this prospectus or any other offering material relating
    to our common stock be circulated or distributed, whether
    directly or indirectly, to the public or any member of the
    public in Singapore other than (a)&#160;to an institutional
    investor or other person specified in Section&#160;274 of the
    Securities and Futures Act, (b)&#160;to a sophisticated
    investor, and in accordance with the conditions specified in
    Section&#160;275 of the Securities and Futures Act or
    (c)&#160;otherwise pursuant to, and in accordance with the
    conditions of, any other applicable provision of the Securities
    and Futures Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of Germany</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each person who is in possession of this prospectus is aware of
    the fact that no German sales prospectus (Verkaufsprospekt)
    within the meaning of the Securities Sales Prospectus Act,
    Wertpapier-Verkaufsprospektgesetz, or the Act, of the Federal
    Republic of Germany has been or will be published with respect
    to our common stock. In particular, each underwriter has
    represented that it has not engaged and has agreed that it will
    not engage in a public offering in (offentliches Angebot) within
    the meaning of the Act with respect to any of our common stock
    otherwise than in accordance with the Act and all other
    applicable legal and regulatory requirements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of France</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of common stock are being issued and sold outside the
    Republic of France and that, in connection with their initial
    distribution, it has not offered or sold and will not offer or
    sell, directly or indirectly, any shares of common stock to the
    public in the Republic of France, and that it has not
    distributed and will not distribute or cause to be distributed
    to the public in the Republic of France this prospectus or any
    other offering material relating to the shares of common stock,
    and that such offers, sales and distributions have been and will
    be made in the Republic of France only to qualified investors
    (investisseurs qualifi&#233;s) in accordance with
    <FONT style="white-space: nowrap">Article&#160;L.411-2</FONT>
    of the Monetary and Financial Code and decr&#233;t
    <FONT style="white-space: nowrap">no.&#160;98-880</FONT>
    dated 1st&#160;October, 1998.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of the Netherlands</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock may not be offered, sold, transferred or
    delivered in or from the Netherlands as part of their initial
    distribution or at any time thereafter, directly or indirectly,
    other than to, individuals or legal entities situated in the
    Netherlands who or which trade or invest in securities in the
    conduct of a business or profession (which includes banks,
    securities intermediaries (including dealers and brokers),
    insurance companies, pension funds, collective investment
    institution, central governments, large international and
    supranational organizations, other institutional investors and
    other parties, including treasury departments of commercial
    enterprises, which as an ancillary activity regularly invest in
    securities (hereinafter, the Professional Investors), provided
    that in the offer, prospectus and in any other documents or
    advertisements in which a forthcoming offering of our common
    stock is publicly announced (whether electronically or
    otherwise) in the Netherlands it is stated that such offer is
    and will be exclusively made to such Professional Investors.
    Individual or legal entities who are not Professional Investors
    may not participate in the offering of our common stock, and
    this prospectus or any other offering material relating to our
    common stock may not be considered an offer or the prospect of
    an offer to sell or exchange our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of Italy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No prospectus has or will be registered in the Republic of Italy
    with the Italian Stock Exchange Commission (<I>Commissione
    Nazionale per le Societ&#225; di Borsa</I>), or Consob, pursuant
    to the Prospectus Directive and Italian laws and regulations on
    financial products. Accordingly, the common stock may not be
    offered, sold or delivered in the Republic of Italy, and copies
    of this prospectus or any other document relating to the common
    stock may not be distributed in the Republic of Italy, except to
    (a)&#160;qualified investors (<I>investori qualificati</I>), or
    the Qualified Investors, pursuant to Article&#160;100 of
    Legislative Decree no.&#160;58 dated February&#160;24,
</DIV>
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    <BR>
    142
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1998, as amended, or the Financial Act, as defined in
    <FONT style="white-space: nowrap">Article&#160;34-</FONT><I>ter
    </I>of Consob Regulation no.&#160;11971 dated May&#160;14. 1999,
    as amended, Regulation no.&#160;11971; or (b)&#160;in
    circumstances where there is an exemption from the rules
    governing an offer to the public of financial products pursuant
    to Article&#160;94 <I>et&#160;seq. </I>of the Financial Act, and
    to Regulation no.&#160;11971. Any offer, sale or delivery of the
    common stock in the Republic of Italy must be (a)&#160;made by
    an investment firm, a bank or financial intermediary authorized
    to engage in such activities in Italy, in compliance with the
    Financial Act and with Legislative Decree no.&#160;385 dated
    September&#160;1, 1993, as amended and Consob Regulation
    no.&#160;16190 dated October&#160;29, 2007, as amended, and any
    other applicable law and regulation; and (b)&#160;in compliance
    with any applicable Italian laws and regulations and any other
    condition or limitation that may be imposed by Consob, the Bank
    of Italy (<I>Banca d&#146;Italia</I>) and any other relevant
    Italian authorities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Residents of Switzerland</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The common stock may not and will not be publicly offered,
    distributed or re-distributed in or from Switzerland and neither
    this prospectus nor any other solicitation for investments in
    the common stock may be communicated or distributed in
    Switzerland in any way that could constitute a public offering
    within the meaning of Articles&#160;652a and 1156 of the Swiss
    Code of Obligations. This prospectus may not be copied,
    reproduced, distributed or passed on to others without the prior
    written consent of the international underwriters. This
    prospectus is not a prospectus within the meaning of
    Articles&#160;652a and 1156 of the Swiss Code of Obligations or
    a listing prospectus according to the Listing Rules of the SIX
    Swiss Exchange and may not comply with the information standards
    required thereunder. We will not apply for a listing of our
    common stock on any Swiss stock exchange or other Swiss
    regulated market and this prospectus may not comply with the
    information required under the relevant listing rules.
</DIV>
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    <BR>
    143
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTICE TO
    CANADIAN RESIDENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Resale
    Restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The distribution of the common stock in Canada is being made
    only on a private placement basis exempt from the requirement
    that we and the selling stockholders prepare and file a
    prospectus with the securities regulatory authorities in each
    province where trades of common stock are made. Any resale of
    the common stock in Canada must be made under applicable
    securities laws which will vary depending on the relevant
    jurisdiction, and which may require resales to be made under
    available statutory exemptions or under a discretionary
    exemption granted by the applicable Canadian securities
    regulatory authority. Purchasers are advised to seek legal
    advice prior to any resale of the common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Representations
    of Purchasers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By purchasing common stock in Canada and accepting a purchase
    confirmation a purchaser is representing to us, the selling
    stockholders and the dealer from whom the purchase confirmation
    is received that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the purchaser is entitled under applicable provincial securities
    laws to purchase the common stock without the benefit of a
    prospectus qualified under those securities laws,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    where required by law, that the purchaser is purchasing as
    principal and not as agent,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the purchaser has reviewed the text above under Resale
    Restrictions,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the purchaser acknowledges and consents to the provision of
    specified information concerning its purchase of the common
    stock to the regulatory authority that by law is entitled to
    collect the information.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further details concerning the legal authority for this
    information is available on request.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rights of
    Action&#160;&#151; Ontario Purchasers Only</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Ontario securities legislation, certain purchasers who
    purchase a security offered by this prospectus during the period
    of distribution will have a statutory right of action for
    damages, or while still the owner of the common stock, for
    rescission against us and the selling stockholders in the event
    that this prospectus contains a misrepresentation without regard
    to whether the purchaser relied on the misrepresentation. The
    right of action for damages is exercisable not later than the
    earlier of 180&#160;days from the date the purchaser first had
    knowledge of the facts giving rise to the cause of action and
    three years from the date on which payment is made for the
    common stock. The right of action for rescission is exercisable
    not later than 180&#160;days from the date on which payment is
    made for the common stock. If a purchaser elects to exercise the
    right of action for rescission, the purchaser will have no right
    of action for damages against us or the selling stockholders. In
    no case will the amount recoverable in any action exceed the
    price at which the common stock were offered to the purchaser
    and if the purchaser is shown to have purchased the securities
    with knowledge of the misrepresentation, we and the selling
    stockholders will have no liability. In the case of an action
    for damages, we and the selling stockholders will not be liable
    for all or any portion of the damages that are proven to not
    represent the depreciation in value of the common stock as a
    result of the misrepresentation relied upon. These rights are in
    addition to, and without derogation from, any other rights or
    remedies available at law to an Ontario purchaser. The foregoing
    is a summary of the rights available to an Ontario purchaser.
    Ontario purchasers should refer to the complete text of the
    relevant statutory provisions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Enforcement
    of Legal Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our directors and officers as well as the experts named
    herein and the selling stockholders may be located outside of
    Canada and, as a result, it may not be possible for Canadian
    purchasers to effect service of process within Canada upon us or
    those persons. All or a substantial portion of our assets and
    the assets of those persons may be located outside of Canada
    and, as a result, it may not be possible to satisfy a judgment
</DIV>
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    <BR>
    144
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    against us or those persons in Canada or to enforce a judgment
    obtained in Canadian courts against us or those persons outside
    of Canada.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    and Eligibility for Investment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canadian purchasers of common stock should consult their own
    legal and tax advisors with respect to the tax consequences of
    an investment in the common stock in their particular
    circumstances and about the eligibility of the common stock for
    investment by the purchaser under relevant Canadian legislation.
</DIV>

<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the shares of common stock offered hereby will
    be passed upon for us by Wilson Sonsini Goodrich&#160;&#038;
    Rosati, Professional Corporation, Austin, Texas. Certain legal
    matters in connection with the offering will be passed upon for
    the underwriters by Simpson Thacher&#160;&#038; Bartlett LLP,
    Palo Alto, California.
</DIV>

<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of RealPage, Inc. at
    December&#160;31, 2008 and 2009, and for each of the three years
    in the period ended December&#160;31, 2009, appearing in this
    prospectus and the registration statement have been audited by
    Ernst&#160;&#038; Young LLP, independent registered public
    accounting firm, as set forth in their report thereon appearing
    elsewhere herein, and are included in reliance upon such report
    given on the authority of such firm as experts in accounting and
    auditing.
</DIV>

<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    under the Securities Act with respect to the shares of common
    stock we are offering. The registration statement, including the
    attached exhibits and schedule, contains additional relevant
    information about us and our common stock. This prospectus does
    not contain all of the information set forth in the registration
    statement and the exhibits and schedule thereto. The rules and
    regulations of the SEC allow us to omit from this prospectus
    certain information included in the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further information about us and the common stock, you may
    inspect a copy of the registration statement and the exhibits
    and schedule to the registration statement without charge at the
    offices of the SEC at 100&#160;F&#160;Street, N.E.,
    Washington,&#160;D.C. 20549. You may obtain copies of all or any
    part of the registration statement from the Public Reference
    Section of the SEC, 100&#160;F&#160;Street, N.E.,
    Washington,&#160;D.C. 20549 upon the payment of the prescribed
    fees. You may obtain information on the operation of the Public
    Reference Room by calling the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    The SEC maintains a website at www.sec.gov that contains
    reports, proxy and information statements and other information
    regarding registrants that file electronically with the SEC. You
    can also inspect our registration statement on this website.
</DIV>
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    <BR>
    145
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
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    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>Report of Ernst&#160;&#038; Young LLP,
    Independent Registered Public Accounting Firm</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Consolidated Balance Sheets</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Consolidated Statements of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Consolidated Statements of Changes in Redeemable
    Convertible Preferred Stock and Stockholders&#146; Deficit</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>Consolidated Statements of Cash Flows</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#306'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='301'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    Independent Registered Public Accounting Firm</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors and Stockholders of
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    RealPage, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheets of
    RealPage, Inc. (the &#147;Company&#148;) as of December&#160;31,
    2008 and 2009, and the related consolidated statements of
    operations, changes in redeemable convertible preferred stock
    and stockholders&#146; deficit and cash flows for each of the
    three years in the period ended December&#160;31, 2009. Our
    audits also included the financial statement schedule listed in
    the index under Item&#160;16(b). These financial statements and
    schedule are the responsibility of the Company&#146;s
    management. Our responsibility is to express an opinion on these
    financial statements and schedule based on our audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements and
    schedule are free of material misstatement. We were not engaged
    to perform an audit of the Company&#146;s internal control over
    financial reporting. Our audits included consideration of
    internal control over financial reporting as a basis for
    designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the Company&#146;s internal control over
    financial reporting. Accordingly, we express no such opinion. An
    audit also includes examining, on a test basis, evidence
    supporting the amounts and disclosures in the financial
    statements, assessing the accounting principles used and
    significant estimates made by management, and evaluating the
    overall financial statement presentation. We believe that our
    audits provide a reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the consolidated
    financial position of RealPage, Inc. at December&#160;31, 2008
    and 2009, and the consolidated results of its operations and its
    cash flows for each of the three years in the period ended
    December&#160;31, 2009 in conformity with United States
    generally accepted accounting principles. Also, in our opinion,
    the related financial statement schedule, when considered in
    relation to the basic financial statements taken as a whole,
    presents fairly in all material respects, the information set
    forth within.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed in Note 2 to the consolidated financial statements,
    the Company changed its method of accounting for business
    combinations on January&#160;1, 2009.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ Ernst &#038; Young LLP
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dallas, Texas
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;28, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RealPage,
    Inc.</FONT></B>
</DIV>

<!-- XBRL,bs -->
<A name='302'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Balance Sheets<BR>
    </A>(in thousands, except share and per share amounts)</FONT></B>
</DIV>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,886
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Accounts receivable, less allowance for doubtful accounts of
    $2,895 at December&#160;31, 2008, and $2,222 at
    December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,459
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Deferred tax asset, net of valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,739
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,003
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Property, equipment, and software, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Identified intangible assets, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Deferred tax asset, net of valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    102,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    142,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Liabilities, redeemable convertible preferred stock and
    stockholders&#146; deficit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Accrued expenses and other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,830
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Current portion of deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,213
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Current portion of long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Customer deposits held in restricted accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Deferred tax liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Revolving credit facility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Long-term debt, less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Commitments and contingencies (Note&#160;9)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Redeemable convertible preferred stock, Series&#160;A and A1,
    $0.001&#160;par value: authorized, issued and outstanding
    51,812,500&#160;shares (liquidation value $51,823 and $51,823 at
    December 31, 2008 and 2009, respectively):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Redeemable convertible preferred stock, Series&#160;B,
    $0.001&#160;par value: authorized, issued and outstanding
    3,250,000&#160;shares (liquidation value $6,500 and $6,500 at
    December 31, 2008 and 2009, respectively):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,491
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Redeemable convertible preferred stock, Series&#160;C,
    $0.001&#160;par value: authorized, issued and outstanding
    3,025,000&#160;shares. (liquidation value $13,613 and $13,613 at
    December 31, 2008 and 2009, respectively):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,473
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stockholders&#146; (deficit) equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Common stock, $0.001&#160;par value: 135,000,000&#160;shares
    authorized and 47,543,000 and 53,334,684 issued and 47,404,388
    and 52,921,608 outstanding as of December&#160;31, 2008 and
    2009, respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Treasury stock shares, at cost&#160;&#151; 138,884 and
    413,076&#160;shares as of December 31, 2008 and 2009,
    respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (449
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (938
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (938
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (118,226
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (89,797
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (89,797
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total stockholders&#146; (deficit) equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (98,957
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total liabilities, redeemable convertible preferred stock and
    stockholders&#146; deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    102,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    142,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes
</DIV>
<!-- /XBRL,bs -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RealPage,
    Inc.</FONT></B>
</DIV>

<!-- XBRL,op -->
<A name='303'>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statements of Operations<BR>
    </A>(in thousands, except per share amounts)</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Revenue:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cost of
    revenue<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Gross profit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Operating expense:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Product
    development<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Sales and
    marketing<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    General and
    administrative<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total operating expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Operating (loss) income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,633
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (354
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,510
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,152
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,528
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>(Loss) income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,506
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Net (loss) income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Net (loss) income attributable to common stockholders</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Net (loss) income per share attributable to common
    stockholders</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Weighted average shares used in computing net (loss) income per
    share attributable to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Pro forma net income per share attributable to common
    stockholders
    (unaudited)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Pro forma weighted average shares outstanding used in computing
    net income per share attributable to common stockholders
    (unaudited)<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
    <DIV style="font-size: 1pt; margin-left: 0%; width: 18%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="13" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    (1)&#160;Includes stock-based compensation expense as follows:
</DIV>
</TD>
</TR>
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 24pt">
    Cost of revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 24pt">
    Product development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 24pt">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 24pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 24pt">
    Total stock-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Pro forma net income per share
    represents net income divided by the pro forma weighted average
    shares outstanding as though the conversion of our redeemable
    convertible preferred stock into common stock occurred on the
    initial issuance dates.
    </FONT></TD>
</TR>





<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Pro forma weighted average shares
    outstanding reflects the conversion of our redeemable
    convertible preferred stock (using the if-converted method) into
    common stock as though the conversion had occurred on the
    original dates of issuance.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes
</DIV>
<!-- /XBRL,op -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RealPage,
    Inc.</FONT></B>
</DIV>

<!-- XBRL,se -->
<A name='304'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statements of Redeemable Convertible Preferred Stock and
    Stockholders&#146; Deficit<BR>
    </A>(in thousands)</FONT></B>
</DIV>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Redeemable Convertible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Preferred Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-in <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Treasury Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stockholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deficit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deficit</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance as of December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (111,874
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (99,273
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accretion of redeemable convertible preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,234
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,234
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,234
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Exercise of stock options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    968
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Exercise of stock warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Warrants issued to a customer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance as of December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,027
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (115,017
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (106,969
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Issuance of redeemable convertible preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accretion of redeemable convertible preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,698
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,698
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Exercise of stock options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    770
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Exercise of stock warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,306
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    271
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Conversion of redeemable convertible preferred stock dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27,914
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Treasury stock purchase, at cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (139
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (449
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (449
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance as of December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (118,226
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (139
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (449
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (98,957
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accretion of redeemable convertible preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,678
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,678
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Exercise of stock options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Exercise of stock warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Common stock warrants converted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Conversion of redeemable convertible preferred stock dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,521
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Issuances related to acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,862
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Treasury stock purchase, at cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (274
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (489
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (489
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance as of December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    71,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,335
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (89,797
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (413
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (938
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (66,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes.
</DIV>
<!-- /XBRL,se -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RealPage,
    Inc.</FONT></B>
</DIV>

<!-- XBRL,cf -->
<A name='305'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statements of Cash Flows<BR>
    </A>(in thousands)</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Cash flows from operating activities:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Adjustments to reconcile net (loss) income to net cash provided
    by operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Deferred tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,308
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Loss on disposal of assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Impairment of assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    830
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Changes in assets and liabilities, net of assets acquired and
    liabilities assumed in business combinations:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,168
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,622
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Customer deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (105
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (330
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (203
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (290
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,140
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    939
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (579
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    645
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Accrued compensation, taxes and benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (461
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Other current and long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    309
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (432
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Net cash provided by operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Cash flows from investing activities:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Purchases of property, equipment and software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,122
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,263
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,509
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Acquisition of businesses, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,033
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (22,057
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,167
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Net cash used by investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,155
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (32,320
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,676
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Cash flows from financing activities:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Proceeds from notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,917
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,521
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Payments on notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,015
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,454
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,853
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Proceeds from (payments on) revolving credit facility, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Payments on capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (678
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,558
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Issuance of redeemable convertible preferred stock, net of costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Preferred stock dividend
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,516
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Issuance of common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Purchase of treasury stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (449
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (489
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Net increase in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,517
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Cash and cash equivalents:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,493
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    End of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Supplemental cash flow information:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cash paid for interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cash paid for income taxes, net of refunds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Non-cash financing activities:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Fixed assets acquired under capital leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,462
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Accrued dividends and accretion of preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,234
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Conversion of preferred stock dividend to common shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes.
</DIV>
<!-- /XBRL,cf -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,ns -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RealPage,
    Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='306'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    To Consolidated Financial Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">The
    Company</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    RealPage, Inc., a Delaware corporation, and its subsidiaries,
    (Company or we or us) is a provider of property management
    solutions that enable owners and managers of single-family and a
    wide variety of multi-family rental property types to manage
    their marketing, pricing, screening, leasing, accounting,
    purchasing and other property operations. Our on demand software
    solutions are delivered through an integrated software platform
    that provides a single point of access and a shared repository
    of prospect, resident and property data. By integrating and
    streamlining a wide range of complex processes and interactions
    among the rental housing ecosystem of owners, managers,
    prospects, residents and service providers, our platform
    optimizes the property management process and improves the
    experience for all of these constituents. Our solutions enable
    property owners and managers to optimize revenues and reduce
    operating costs through higher occupancy, improved pricing
    methodologies, new sources of revenue from ancillary services,
    improved collections and more integrated and centralized
    processes.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Basis
    of Presentation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying consolidated balance sheets as of
    December&#160;31, 2008 and 2009 and the accompanying
    consolidated statements of operations and cash flows for each of
    the three years in the period ended December&#160;31, 2009
    represent our financial position, results of operations and cash
    flows as of and for the periods then ended. The consolidated
    financial statements include the accounts of RealPage, Inc. and
    our wholly-owned subsidiaries. All material intercompany
    accounts and transactions have been eliminated in consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In preparing the accompanying consolidated financial statements,
    we have reviewed, as determined necessary by our management,
    events that have occurred after December&#160;31, 2009, up until
    the issuance of the financial statements. As such, our
    management was not aware of any subsequent events, other than
    those disclosed herein, requiring additional disclosure.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Applicable
    Accounting Guidance</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any reference in these notes to applicable accounting guidance
    is meant to refer to the authoritative non-governmental United
    States generally accepted accounting principles as found in the
    Financial Accounting Standards Board&#146;s (FASB) Accounting
    Standards Codification (ASC).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unaudited
    Pro Forma Presentation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the consummation of the initial public offering
    contemplated in this prospectus, all of the outstanding shares
    of our convertible preferred stock will automatically convert
    into shares of our common stock. The December&#160;31, 2009
    unaudited pro forma balance sheet data has been prepared
    assuming the conversion of the redeemable convertible preferred
    stock outstanding into 58,087,500&#160;shares of common stock.
    The unaudited pro forma net income per share attributed to
    common stockholders for the year ended December&#160;31, 2009
    was computed using the weighted average number of common shares
    outstanding and has been prepared assuming the conversion of the
    convertible preferred stock outstanding into
    58,087,500&#160;shares of common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Segment
    and Geographic Information</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our chief operating decision maker is our Chief Executive
    Officer, who reviews financial information presented on a
    company-wide basis. As a result, we determined that the Company
    has a single reporting segment and operating unit structure.
</DIV>
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    <BR>
    F-7
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principally, all of our revenues for the periods ended
    December&#160;31, 2007, 2008 and 2009 were in North America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net long-lived assets held were $18.6&#160;million and
    $20.3&#160;million in North America and $0.6&#160;million and
    $0.5&#160;million in our international subsidiaries at
    December&#160;31, 2008 and 2009, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Use of
    Estimates</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preparation of financial statements in conformity with
    accounting principles generally accepted in the United States
    (GAAP) requires our management to make certain estimates and
    assumptions that affect the reported amounts of assets and
    liabilities and the disclosure of contingent assets and
    liabilities at the date of the financial statements, and the
    reported amounts of revenues and expenses during the reporting
    periods. Significant estimates include the allowance for
    doubtful accounts; the useful lives of intangible assets and the
    recoverability or impairment of tangible and intangible asset
    values; purchase accounting allocations and related reserves;
    revenue and deferred revenue; stock-based compensation; and our
    effective income tax rate and the recoverability of deferred tax
    assets, which are based upon our expectations of future taxable
    income and allowable deductions. Actual results could differ
    from these estimates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    Equivalents</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We consider all highly liquid investments with a maturity date,
    when purchased, of three months or less to be cash equivalents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Concentrations
    of Credit Risk</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cash accounts, including an overnight repurchase account,
    are maintained at various financial institutions and may, from
    time to time, exceed federally insured limits. The Company has
    not experienced any losses in such accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Concentrations of credit risk with respect to accounts
    receivable result from substantially all of our customers being
    in the multi-family rental housing market. Our customers,
    however, are dispersed across different geographic areas. We do
    not require collateral from customers. We maintain an allowance
    for losses based upon the expected collectability of accounts
    receivable. Accounts receivable are written off upon
    determination of non-collectability following established
    Company policies based on the aging from the accounts receivable
    invoice date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No single customer accounted for 5% or more of our revenue or
    accounts receivable for the years ended December&#160;31, 2007,
    2008 or 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fair
    Value of Financial Instruments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective January&#160;1, 2008, we adopted a new accounting
    standard which defines fair value, establishes a framework for
    measuring fair value and expands on required disclosures
    regarding fair value measurements. This standard applies to
    reported balances that are required or permitted to be measured
    at fair value under existing accounting pronouncements
    accordingly, but does not require any new fair value
    measurements of previously reported balances. The adoption had
    no impact on our consolidated results of operations or financial
    position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Financial assets and liabilities with carrying amounts
    approximating fair value include cash and cash equivalents,
    restricted cash, accounts receivable, accounts payable and
    accrued expenses and other current liabilities. The carrying
    amount of these financial assets and liabilities approximates
    fair value because of their short maturities. The carrying
    amount of our debt and other long-term liabilities approximates
    their fair value. The fair value of debt was based upon our
    management&#146;s best estimate of interest rates that would be
    available for similar debt obligations as of December&#160;31,
    2008 and 2009 and was consistent with the interest rates we
    received in connection with the refinancing of our debt
    obligations in February 2010.
</DIV>
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    <BR>
    F-8
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For several of our solutions, we invoice customers prior to the
    period in which service is provided. Accounts receivable
    represent trade receivables from customers when we have invoiced
    for software solutions
    <FONT style="white-space: nowrap">and/or</FONT>
    services and we have not yet received payment. We present
    accounts receivable net of an allowance for doubtful accounts.
    We maintain an allowance for doubtful accounts for estimated
    losses resulting from the inability of customers to make
    required payments, or the customer cancelling prior to the
    service being rendered. In doing so, we consider the current
    financial condition of the customer, the specific details of the
    customer account, the age of the outstanding balance, the
    current economic environment and historical credit trends. As a
    result, a portion of our allowance is for services not yet
    rendered and, therefore, is charged as an offset to deferred
    revenue, which does not have an effect on the statement of
    operations. Any change in the assumptions used in analyzing a
    specific account receivable might result in an additional
    allowance for doubtful accounts being recognized in the period
    in which the change occurs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Property,
    Equipment and Software</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, equipment and software are recorded at cost less
    accumulated depreciation and amortization, which are computed
    using the straight-line method over the following estimated
    useful lives:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="88%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3-10&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Data processing and communications equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3-10&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture, fixtures and other equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3-5&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Software includes purchased software and internally developed
    software. Leasehold improvements are depreciated over the
    shorter of the lease term or the estimated useful lives of the
    assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Business
    Combinations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When we acquire businesses, we allocate the total consideration
    paid to the fair value of the tangible assets, liabilities, and
    identifiable intangible assets acquired. Any residual purchase
    consideration is recorded as goodwill. The allocation of the
    purchase price requires our management to make significant
    estimates in determining the fair values of assets acquired and
    liabilities assumed, in particular with respect to identified
    intangible assets. These estimates are based on the application
    of valuation models using historical experience and information
    obtained from the management of the acquired companies. These
    estimates can include, but are not limited to, the cash flows
    that an asset is expected to generate in the future, the
    appropriate weighted-average cost of capital and the cost
    savings expected to be derived from acquiring an asset. These
    estimates are inherently uncertain and unpredictable. In
    addition, unanticipated events and circumstances may occur which
    may affect the accuracy or validity of these estimates. In
    accordance with new accounting guidance, beginning in 2009, we
    began including the fair value of contingent consideration to be
    paid within the total consideration allocated to the fair value
    of the assets acquired and liabilities assumed. This requires us
    to make estimates regarding the fair value of the amounts to be
    paid. Additionally, we expense acquisition-related costs as
    incurred rather than including as a component of purchase price.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Impairment
    of Long-Lived Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We perform an impairment review of long-lived assets held and
    used whenever events or changes in circumstances indicate that
    the carrying value may not be recoverable. Factors we consider
    important that could trigger an impairment review include, but
    are not limited to, significant under-performance relative to
    projected future operating results, significant changes in the
    manner of our use of the acquired assets or our overall business
    <FONT style="white-space: nowrap">and/or</FONT>
    product strategies. When we determine that the carrying value of
    a long-lived asset may not be recoverable based upon the
    existence of one or more of these indicators, we determine the
    recoverability by comparing the carrying amount of the asset or
    asset group to net future undiscounted cash flows that the asset
    or assets are expected to generate. We would then recognize an
    impairment charge equal to the amount by which the carrying
    amount exceeds the fair market value of the asset or assets.
</DIV>
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    <BR>
    F-9
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2008, we decided to sell certain assets associated
    with one of our service offerings with a net book value of
    $1.8&#160;million. Assets identified for sale were written down
    to their estimated market value at December&#160;31, 2008,
    resulting in a loss of $0.8&#160;million. The estimated market
    value of $1.0&#160;million was based on observable prices for
    similar assets. We have recorded these assets in other current
    assets in the consolidated balance sheet at December&#160;31,
    2008. During 2009, a portion of these assets were sold. The
    balance of these assets at December&#160;31, 2009, was
    $0.2&#160;million. As the held for sale criteria were no longer
    met, these assets were reclassified to fixed assets at
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Goodwill
    and Other Intangible Assets with Indefinite Lives</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We test goodwill and other intangible assets with indefinite
    lives for impairment on an annual basis in the fourth quarter of
    each year. Additionally, we will test goodwill and other
    intangible assets with indefinite lives in the interim if events
    and circumstances indicate that goodwill and other intangible
    assets with indefinite lives may be impaired. The events and
    circumstances that we consider include significant
    under-performance relative to projected future operating results
    and significant changes in our overall business
    <FONT style="white-space: nowrap">and/or</FONT>
    product strategies. We evaluate impairment of goodwill and other
    intangible assets with indefinite lives using a two-step
    process. The first step involves a comparison of the fair value
    of a reporting unit with its carrying amount. If the carrying
    amount of the reporting unit exceeds its fair value, the second
    step of the process involves a comparison of the fair value and
    carrying amount of the goodwill and other intangible assets with
    indefinite lives of that reporting unit. If the carrying amount
    of the goodwill and other intangible assets with indefinite
    lives of a reporting unit exceeds the fair value of that
    goodwill and other intangible assets with indefinite lives, we
    would recognize an impairment loss equal to the excess of
    carrying value over fair value. If an event occurs that would
    cause us to revise our estimates and assumptions used in
    analyzing the value of our goodwill and other intangible assets
    with indefinite lives, the revision could result in a non-cash
    impairment charge that could have a material impact on our
    financial results. There was no impairment of goodwill or
    intangible assets with indefinite lives in 2007, 2008 or 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Intangible
    Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Intangible assets consist of acquired developed product
    technologies, acquired customer relationships, vendor
    relationships, non-competition agreements and tradenames. We
    record intangible assets at fair value and amortize those with
    finite lives over the shorter of the contractual life or the
    estimated useful life. We estimate the useful lives of acquired
    developed product technologies and customer relationships based
    on factors that include the planned use of each developed
    product technology and the expected pattern of future cash flows
    to be derived from each developed product technology and
    existing customer relationships. We include amortization of
    acquired developed product technologies in cost of revenue,
    amortization of acquired customer relationships in sales and
    marketing expenses and amortization of vendor relationships and
    non-competition agreements in general and administrative
    expenses in our consolidated statements of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income taxes are provided based on the liability method, which
    results in income tax assets and liabilities arising from
    temporary differences. Temporary differences are differences
    between the tax basis of assets and liabilities and their
    reported amounts in the financial statements that will result in
    taxable or deductible amounts in future years. The liability
    method requires the effect of tax rate changes on current and
    accumulated deferred income taxes to be reflected in the period
    in which the rate change was enacted. The liability method also
    requires that deferred tax assets be reduced by a valuation
    allowance unless it is more likely than not that the assets will
    be realized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may recognize a tax benefit from uncertain tax positions only
    if it is at least more likely than not that the tax position
    will be sustained upon examination by the taxing authorities,
    based on the technical merits of the position. The tax benefits
    recognized in the financial statements from such a position are
    measured based on the largest benefit that has a greater than
    50% likelihood of being realized upon settlement with the taxing
    authorities. Upon our adoption of the related standard, there
    was no liability for uncertain tax positions due to the fact
    that there were no identified tax benefits that were considered
    uncertain positions.
</DIV>
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    <BR>
    F-10
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We establish valuation allowances when necessary to reduce
    deferred tax assets to the amounts expected to be realized. We
    evaluate the need for, and the adequacy of, valuation allowances
    based on the expected realization of our deferred tax assets.
    The factors used to assess the likelihood of realization include
    historical earnings, our latest forecast of taxable income and
    available tax planning strategies that could be implemented to
    realize the net deferred tax assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our effective tax rates are primarily affected by the amount of
    our taxable income or losses in the various taxing jurisdictions
    in which we operate, the amount of federal and state net
    operating losses and tax credits, the extent to which we can
    utilize these net operating loss carryforwards and tax credits
    and certain benefits related to stock option activity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derive our revenue from three primary sources: our on demand
    software solutions; our on premise software solutions; and
    professional and other services. We commence revenue recognition
    when all of the following conditions are met:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there is persuasive evidence of an arrangement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the solution and/or service has been provided to the customer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the collection of the fees is probable;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount of fees to be paid by the customer is fixed or
    determinable.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For multi-element arrangements that include multiple software
    solutions
    <FONT style="white-space: nowrap">and/or</FONT>
    services, we allocate arrangement consideration to all
    deliverables that have stand-alone value based on their relative
    selling prices. In such circumstances, we utilize the following
    hierarchy to determine the selling price to be used for
    allocating revenue to deliverables as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Vendor specific objective evidence (VSOE), if
    available.</I>&#160;&#160;The price at which we sell the element
    in a separate stand-alone transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Third-party evidence of selling price (TPE), if VSOE of
    selling price is not available.</I>&#160;&#160;Evidence from us
    or other companies of the value of a largely interchangeable
    element in a transaction;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Estimated selling price, if neither VSOE nor TPE of selling
    price is available.</I>&#160;&#160;Our best estimate of the
    stand-alone selling price of an element in a transaction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, we sell on demand software solutions with
    professional services. In such cases, as each element has stand
    alone value, we allocate arrangement consideration based on our
    estimated selling price of the on demand software solution and
    VSOE of the selling price of the professional services.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">On Demand
    Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our on demand revenue consists of license and subscription fees,
    transaction fees related to certain of our software-enabled
    value-added services and commissions derived from us selling
    certain risk mitigation services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    License and subscription fees are comprised of a charge billed
    at the initial order date and monthly or annual subscription
    fees for accessing our on demand software solutions. The license
    fee billed at the initial order date is recognized as revenue on
    a straight-line basis over the longer of the contractual term or
    the period in which the customer is expected to benefit, which
    we consider to be four years. Recognition starts once the
    product has been activated. Revenue from monthly and annual
    subscription fees is recognized on a straight-line basis over
    the access period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recognize revenue from transaction fees derived from certain
    of our software-enabled value-added services as the related
    services are performed.
</DIV>
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    <BR>
    F-11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We act as an insurance agent as a part of our risk mitigation
    services. We recognize the commissions related to these services
    ratably over the policy term.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">On
    Premise Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue from our on premise software solutions is comprised of
    an annual term license, which includes maintenance and support.
    Customers can renew their annual term license for additional
    one-year terms at renewal price levels. We recognize the annual
    term license on a straight-line basis over the contract term.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Professional
    and Other Revenue</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Professional &#038; other revenue is recognized as the services
    are rendered for time and material contracts. Training revenues
    are recognized after the services are performed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Deferred
    Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Deferred revenue primarily consists of billings or payments
    received in advance of revenue recognition from our subscription
    service described above and is recognized as the revenue
    recognition criteria are met. For several of our solutions, we
    invoice our customers in annual, monthly or quarterly
    installments in advance of the commencement of the service
    period. Accordingly, the deferred revenue balance does not
    represent the total contract value of annual subscription
    agreements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Revenue</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of revenue consists primarily of salaries and related
    personnel expenses of our operations and support personnel,
    including training and implementation services, expenses related
    to the operation of our data center, fees paid to third-party
    providers, allocations of facilities overhead costs and
    depreciation, amortization of acquired technologies and
    amortization of capitalized software.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Customer
    Acquisition Costs</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The costs of obtaining new customers are expensed as incurred.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock-Based
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We record stock-based compensation expense for options granted
    to employees based on the estimated fair value for the awards,
    using the Black-Scholes option pricing model on the date of
    grant. We recognize expense over the requisite service period,
    which is generally the vesting period, on a straight-line basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At each stock option grant date, we utilize peer group data to
    calculate our expected volatility. Expected volatility is based
    on historical and expected volatility rates of publicly traded
    peers. The expected life of each option grant is based on
    existing employee exercise patterns. The risk-free rate is based
    on the treasury yield rate with a maturity corresponding to the
    expected option life assumed at the grant date. We do not
    estimate forfeitures as the awards vest quarterly over the
    related service term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Changes to the underlying assumptions may have a significant
    impact on the underlying value of the stock options, which could
    have a material impact on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted stock options at exercise prices believed to be
    equal to or above the fair market value of our common stock, as
    of the grant date. Given the absence of any active market for
    our common stock, the fair market value of the common stock
    underlying stock options granted was determined by our
    compensation committee, with input from our management, and
    considered contemporaneous third-party valuations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the periods ended December&#160;31, 2007, 2008 and 2009, we
    incurred expenses of $0.5&#160;million and $1.5&#160;million and
    $2.8&#160;million, respectively, for stock-based compensation
    expense.
</DIV>
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    <BR>
    F-12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capitalized
    Product Development Costs</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We capitalize specific product development costs, including
    costs to develop software products or the software components of
    our solutions to be marketed to external users, as well as
    software programs to be used solely to meet our internal needs.
    The costs incurred in the preliminary stages of development
    related to research, project planning, training, maintenance and
    general and administrative activities, and overhead costs are
    expensed as incurred. The costs of relatively minor upgrades and
    enhancements to the software are also expensed as incurred. Once
    an application has reached the development stage, internal and
    external costs incurred in the performance of application
    development stage activities, including costs of materials,
    services and payroll and payroll-related costs for employees,
    are capitalized, if direct and incremental, until the software
    is substantially complete and ready for its intended use.
    Capitalization ceases upon completion of all substantial
    testing. We also capitalize costs related to specific upgrades
    and enhancements when it is probable the expenditures will
    result in additional functionality. Capitalized costs are
    recorded as part of property and equipment. Internal use
    software is amortized on a straight-line basis over its
    estimated useful life, generally three years. We capitalized
    $1.5&#160;million and $1.4&#160;million of product development
    costs during the years ended December&#160;31, 2008 and 2009,
    respectively, and recognized amortization expense of
    $0.8&#160;million, $0.9&#160;million and $1.3&#160;million
    during the years ended December&#160;31, 2007, 2008 and 2009,
    respectively, included as a component of cost of revenue.
    Unamortized product development cost was $2.9&#160;million and
    $3.1&#160;million at December&#160;31, 2008 and 2009,
    respectively. Our management evaluates the useful lives of these
    assets on an annual basis and tests for impairment whenever
    events or changes in circumstances occur that could impact the
    recoverability of these assets. There were no impairments to
    internal use software during the years ended December&#160;31,
    2007, 2008 or 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Advertising
    Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Advertising costs are expensed as incurred and totaled
    $3.4&#160;million, $4.9&#160;million and $5.9&#160;million for
    the years ended December&#160;31, 2007, 2008 and 2009,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Accrued
    Expenses and Other Current Liabilities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accrued expenses and other current liabilities consisted of the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued compensation, payroll taxes, and benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current portion of capital leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current portion of liabilities related to acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,358
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total accrued expenses and other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,830
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Long-Term Liabilities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other long-term liabilities consisted of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital leases, less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term liabilities related to acquisitions, less current
    portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Recently
    Issued Accounting Standards</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we adopted the FASB ASC. The FASB established
    the ASC as the single source of authoritative non-governmental
    GAAP, superseding various existing authoritative accounting
    pronouncements. It eliminates the previous GAAP hierarchy and
    establishes one level of authoritative GAAP. All other
    literature is considered non-authoritative. The FASB will not
    issue new standards in the form of Statements, FASB Staff
    Positions or Emerging Issues Task Force Abstracts. Instead, it
    will issue an Accounting Standards Update (ASU). The FASB will
    not consider ASUs as authoritative in their own right. ASUs will
    serve only to update the ASC, provide background information
    about the guidance and provide the bases for conclusions on the
    change(s) in the ASC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued guidance regarding business
    combinations, which significantly changes the principles and
    requirements for how the acquirer of a business recognizes and
    measures in its financial statements the identifiable assets
    acquired, the liabilities assumed, any non-controlling interest
    in the acquiree and the goodwill acquired. This statement is
    effective prospectively, except for certain retrospective
    adjustments to deferred tax balances, for fiscal years beginning
    after December&#160;15, 2008. We applied these provisions to our
    2009 acquisitions which resulted in expensing related
    transaction costs and valuing contingent consideration at the
    date of acquisition. See Note&#160;3.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2009, the FASB issued an ASU that established general
    standards of accounting for and disclosure of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. Although there is new
    terminology, the standard is based on the same principles as
    those that currently exist in the auditing standards. The
    standard, which includes a new required disclosure of the date
    through which an entity has evaluated subsequent events, is
    effective for interim or annual periods ending after
    June&#160;15, 2009. The adoption had no impact on our
    consolidated results of operations or financial position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, the FASB issued an ASU providing
    clarification for measuring the fair value of a liability when a
    quoted price in an active market for the identical liability is
    not available. It also clarifies that, when estimating the fair
    value of a liability, a reporting entity is not required to
    include a separate input or adjustment to other inputs relating
    to the existence of a restriction that prevents the transfer of
    the liability. This ASU is effective for fiscal periods
    beginning after August&#160;27, 2009. We do not believe this
    update will have a material impact on our consolidated financial
    statements.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">2007
    Acquisition</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2007, we acquired all of the issued and outstanding
    member interests of Multifamily Internet Ventures, LLC, the
    Irvine, California-based parent company of LeasingDesk LLC
    (LeasingDesk). We purchased LeasingDesk to be able to provide
    resident insurance programs to the multi-family housing
    industry. The LeasingDesk product line includes eRenterPlan, a
    liability policy that insures owners against financial loss due
    to resident-caused damage, or an enhanced version of the product
    which includes renter&#146;s insurance, providing additional
    coverage for resident personal belongings in the event of loss.
    The aggregate purchase price was $7.3&#160;million, net of cash
    acquired, including cash payment of $7.1&#160;million and
    acquisition-related costs of $0.2&#160;million. In April 2008,
    we also paid $0.3&#160;million in contingent consideration. The
    fair value of this contingent consideration was not included
    within total consideration at the acquisition date. This payment
    was recorded as additional goodwill. The purchase price of the
    acquisition was allocated to the net assets acquired based on
    the fair values at the date of the acquisition. Goodwill
    associated with the LeasingDesk acquisition is deductible for
    tax purposes. We included the operating results in our
    consolidated results of operations from the effective date of
    the acquisition.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We allocated the purchase price for LeasingDesk as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>LeasingDesk</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Developed product technologies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Non-competition agreements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tradenames
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    420
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (434
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net other assets (liabilities)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (135
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total purchase price, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,348
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">2008
    Acquisitions</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2008, we entered into an asset purchase agreement
    with WebRoomz, LLC (WebRoomz) to acquire technology for an on
    demand leasing system for the student and privatized military
    housing markets. WebRoomz is a web-based portal that allows
    tenants to match roommates and manages the entire leasing
    process using a document management system. The aggregate
    purchase price was $1.2&#160;million, which included the payment
    of cash and acquisition related costs of $0.1&#160;million. We
    included the operating results in our consolidated results of
    operations from the effective date of the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2008, we completed an acquisition of all of the
    issued and outstanding stock of OpsTechnology, Inc. (Ops). Ops
    offers three on demand products designed to improve efficiencies
    and reduce costs for multi-family companies. The aggregate
    purchase price at closing, net of acquired cash, was
    $21.6&#160;million, which included a cash payment of
    $20.3&#160;million, acquisition-related costs of
    $0.3&#160;million and an additional cash payment of
    $2.7&#160;million, which was paid on the first anniversary of
    the acquisition date. In addition, certain former owners of Ops
    earned 667,000&#160;shares of our common stock by achieving
    certain revenue targets in 2009. This increased the overall
    consideration by $1.7&#160;million. The fair value of this
    contingent consideration was not included within total
    consideration at the acquisition date. This payment was recorded
    as additional goodwill.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We made both of these acquisitions because of the immediate
    availability of product offerings that complemented our existing
    products. We accounted for the Webroomz and Ops acquisitions
    using the purchase method of accounting. Goodwill associated
    with the Webroomz acquisition is deductible for tax purposes;
    however, the goodwill associated with the Ops acquisition is not
    deductible for tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We allocated the purchase prices for Webroomz and Ops as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="76%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Webroomz</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ops</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Developed product technologies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,884
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Vendor relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tradenames
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,840
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    953
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,253
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (619
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (644
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net other assets (liabilities)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total purchase price, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">2009
    Acquisitions</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we purchased substantially all of the assets
    of Evergreen Solutions, Inc. (Evergreen). The acquisition of
    Evergreen further advanced our ability to offer open access to
    our products for clients and certified partners, and improves
    our ability to offer integration of our products and services
    with third-party solutions. The aggregate purchase price at
    closing was $0.9&#160;million, which included a cash payment of
    $0.7&#160;million and the fair value of contingent consideration
    of $0.2&#160;million, which is payable in March 2010 and is
    based on the collection of pre-acquisition accounts receivable
    balances from customers. The $0.2&#160;million is recorded
    within the current portion of acquisition related liabilities on
    the balance sheet. The customer relationships have useful lives
    of four years and are amortized in proportion to the estimated
    cash flows derived from the relationship. We have determined
    that the tradename has an indefinite life, as we anticipate
    keeping the tradename for the foreseeable future given its
    recognition in the marketplace. All direct acquisition costs
    were immaterial and expensed as incurred. We included the
    operating results of this acquisition in our consolidated
    results of operations from the effective date of the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we purchased 100% of the outstanding stock of
    A.L. Wizard, Inc. (ALW). The acquisition of ALW immediately
    provided us with an application of on demand software and
    services for residential property management customers who
    manage senior living properties. The aggregate purchase price at
    closing was $2.8&#160;million, net of cash acquired of
    $0.2&#160;million, which included a cash payment of
    $2.5&#160;million upon acquisition and additional cash payments
    of $0.5&#160;million, half of which is due on the first
    anniversary of the acquisition date, with the remaining amount
    due 18&#160;months from the acquisition date. The
    $0.5&#160;million is recorded in acquisition-related liabilities
    on the balance sheet. We acquired deferred revenue as a
    contractual obligation, which was recorded at its assessed fair
    value of $0.5&#160;million. The fair value was determined by
    incorporating the total cost to service the revenue and a normal
    profit margin for the industry. The customer relationships have
    useful lives of seven years and are amortized in proportion to
    the estimated cash flows derived from the relationship. Acquired
    developed product technologies have a useful life of three years
    and are amortized straight-line over the estimated useful life.
    We have determined that the tradename has an indefinite life, as
    we anticipate keeping the tradename for the foreseeable future
    given its recognition in the marketplace. All direct acquisition
    costs were immaterial and expensed as incurred. We included the
    operating results of this acquisition in our consolidated
    results from the effective date of the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2009, we purchased 100% of the outstanding stock of
    Propertyware, Inc. (Propertyware). The acquisition of
    Propertyware provided an entry into the single-family and small,
    centrally managed multi-family property markets. The acquisition
    also expanded the breadth of products Propertyware will make
    available to its residential property management customers. The
    aggregate purchase price at closing was $11.9&#160;million, net
    of cash acquired, which included a cash payment of
    $9.0&#160;million and additional cash payments of
    $0.5&#160;million payable on the first anniversary of the
    acquisition date and $0.5&#160;million payable 18&#160;months
    after the acquisition date. The $1.0&#160;million is recorded in
    acquisition-related liabilities on the balance sheet. In
    addition, the purchase price included the issuance of 1.0
    million restricted common shares which vest as certain revenue
    targets are achieved as defined in the purchase agreement. The
    fair value of these shares is estimated to be $2.2&#160;million
    and is based on our management&#146;s estimate of the fair value
    of the stock and the probability of the achievement of these
    revenue targets. These shares have a maximum value of
    $2.5&#160;million. We acquired deferred revenue as a contractual
    obligation, which was recorded at its assessed fair value of
    $0.5&#160;million. The acquired intangibles were recorded at
    fair value based on assumptions made by us. The customer
    relationships have useful lives of ten&#160;years and are
    amortized in proportion to the estimated cash flows derived from
    the relationship. Acquired developed product technologies have a
    useful life of three&#160;years and are amortized straight-line
    over the estimated useful life. We have determined that the
    tradename has an indefinite life, as we anticipate keeping the
    tradename for the foreseeable future given its recognition in
    the marketplace. All direct acquisition costs were immaterial
    and expensed as incurred. We included the operating results of
    this acquisition in our consolidated results of operations from
    the effective date of the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We made each of these acquisitions because of the immediate
    availability of product offerings that complemented our existing
    products. We accounted for the Evergreen, ALW and Propertyware
    acquisitions by allocating the total consideration, including
    the fair value of contingent consideration to the fair value of
    assets received and liabilities assumed. Goodwill associated
    with the Evergreen acquisition is deductible for tax
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    purposes; however, the goodwill associated with the ALW and
    Propertyware acquisitions is not deductible for tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We allocated the purchase prices for Evergreen, ALW and
    Propertyware as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Evergreen</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>ALW</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Propertyware</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Developed product technologies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     1,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    964
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tradenames
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (520
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax (liability)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (863
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,407
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total purchase price, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,921
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">2010
    Acquisition</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, we acquired the assets of Domin-8 Enterprise
    Solutions, Inc. (Domin-8). The acquisition of these assets
    improved our ability to serve our multi-family clients with
    mixed portfolios that include smaller, centrally-managed
    apartment communities. The aggregate purchase price at closing
    was $14.0&#160;million, which was paid upon acquisition of the
    assets. This acquisition was financed from the proceeds from the
    amended credit facility (See Note&#160;6)&#160;and cash flow
    from operations. Due to the timing of this acquisition, the
    purchase price allocation was not complete as of the date of
    this filing due to the pending completion of the valuation of
    intangible assets. During 2009, approximately $0.7&#160;million
    of transaction costs related to this acquisition were expensed
    as incurred.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Pro Forma
    Results of Acquisitions</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents unaudited pro forma results of
    operations for 2007, 2008 and 2009 as if the aforementioned
    acquisitions, including Domin-8, had occurred at the beginning
    of each period presented. We prepared the pro forma financial
    information for the combined entities for comparative purposes
    only, and it is not indicative of what actual results would have
    been if the acquisitions had taken place at the beginning of the
    periods presented, or of future results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2008<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited) </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On demand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    108,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    134,896
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    On premise
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Professional and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    104,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    140,009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    160,011
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,261
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,667
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,261
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,116
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,814
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income per share attributable to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.60
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.87
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.60
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.87
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The acquisitions in 2007, 2008, 2009 and 2010 were financed with
    cash flows from operations and financing activities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Acquisition-Related
    Liabilities from Pre-2007 Acquisition</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with a 2002 acquisition, a liability was recorded
    for a $6.0&#160;million earn-out payable to the seller, as
    payment was considered probable. At December&#160;31, 2008 and
    2009, we owed $3.0&#160;million and $2.5&#160;million,
    respectively, in remaining earn-out fees relating to this
    acquisition, of which $2.5&#160;million and $2.0&#160;million
    are included in other long-term liabilities on the consolidated
    balance sheets at December&#160;31, 2008 and 2009, respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;Property,
    Equipment and Software</FONT></B>
</DIV>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, equipment and software consist of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,069
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,039
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Data processing and communications equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture, fixtures, and other equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,066
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Accumulated depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,248
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (40,317
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, equipment and software, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation and amortization expense for property, equipment
    and software was $5.7&#160;million, $9.2&#160;million and
    $10.3&#160;million for the periods ended December&#160;31, 2007,
    2008 and 2009, respectively. This includes depreciation for
    assets purchased through capital leases.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Goodwill
    and Other Intangible Assets</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The change in the carrying amount of goodwill for the years
    ended December&#160;31, 2008 and 2009, is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contingent consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contingent consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,679
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other intangible assets consisted of the following at
    December&#160;31, 2007, 2008 and 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amortization<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Period</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amortization</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amortization</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Finite-lived intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Developed technologies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,870
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1-10&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,539
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,469
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,070
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,707
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,301
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,406
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Vendor relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (311
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,500
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Non-competition agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4-5&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (53
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (83
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total finite-lived intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,245
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,754
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Indefinite-lived intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Tradenames
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,245
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,645
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (7,754
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There was no impairment of goodwill or trade names indicated
    during 2008 or 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amortization of finite-lived intangible assets was
    $1.5&#160;million, $1.8&#160;million and $4.5&#160;million for
    2007, 2008 and 2009, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the estimated amortization of
    intangible assets for the years ending December 31:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Year ending December&#160;31,
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,967
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,028
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Debt</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the components of debt as of
    December 31:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolver
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Promissory notes issued to preferred stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Secured promissory notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    43,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we entered into a Credit Agreement (Credit
    Agreement) with two lenders, which provided for
    $35.0&#160;million term loan and a $10.0&#160;million revolving
    line of credit. A portion of the proceeds from the Credit
    Agreement was used to repay the balance outstanding under our
    prior credit agreement. The term loan and revolving line of
    credit bear interest at rates of the greater of 7.5%, a stated
    rate of 5.0% plus LIBOR, or a stated rate of 5.0% plus the
    bank&#146;s prime rate (or, if greater than 3.5%, the federal
    funds rate plus 0.5% or three month LIBOR plus 1.0%). As of
    December&#160;31, 2009, the bank&#146;s prime rate was 3.25%.
    Principal payments on the term loan are due in quarterly
    installments of approximately $1.3&#160;million until
    September&#160;30, 2010, increasing to approximately
    $1.8&#160;million until September&#160;30, 2012, and increase to
    quarterly installments of approximately $1.9&#160;million
    through March&#160;31, 2013, with the balance due on
    June&#160;30, 2013. The term loan and revolving line of credit
    were collateralized by all of our personal property and are
</DIV>
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    <BR>
    F-19
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    subject to financial covenants, including meeting certain
    financial measures. As of December&#160;31, 2009, we have not
    drawn down on the revolving line of credit, and we are in
    compliance with our debt covenants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, we entered into an amendment to the Credit
    Agreement. Under the terms of the amendment, the original term
    loan was increased by an additional $10.0&#160;million. This
    amendment increased the balance outstanding on the term loan to
    $43.7&#160;million. The related interest rates and maturity
    periods remained consistent with the terms of Credit Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2008, we entered into a note purchase agreement with a
    separate lender. Under the terms of the agreement, we issued
    secured promissory notes (Notes) in the amount of
    $10.0&#160;million with an interest rate of 13.75%, payable
    quarterly. The Notes are to be paid in full before
    August&#160;1, 2013. The Notes are collateralized by all of our
    personal property and are subordinated to the Credit Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;30, 2008, in connection with a declaration of a
    dividend for all holders of our redeemable convertible preferred
    stock, we issued promissory notes to the holders of our
    convertible preferred stock (Stockholder Notes) in an aggregate
    principal amount of $11.1&#160;million. The Stockholder Notes
    bear interest at a rate of 8% and are payable in 16 consecutive
    quarterly payments of principal and interest. We must meet
    certain debt to EBITDA levels and exceed minimum and average
    cash balance requirements in order to make the interest
    payments. Additionally, an amount equal to $0.9&#160;million
    will be paid upon maturity to holders of the Stockholder Notes.
    We recognized $0.2&#160;million of additional interest expense
    related to these notes in 2009. The payments may be deferred at
    the discretion of the board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After giving effect to the February 2010 amendment to the Credit
    Agreement, principal payments are due in the five years ending
    December 31 as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Year ending December&#160;31,
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,606
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Redeemable
    Convertible Preferred Stock</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, we had outstanding
    31,612,500&#160;shares of Series&#160;A Redeemable Convertible
    Preferred Stock (Series&#160;A Preferred),
    20,200,000&#160;shares of Series&#160;A1 Redeemable Convertible
    Preferred Stock (Series&#160;Al Preferred),
    3,250,000&#160;shares of Series&#160;B Redeemable Convertible
    Preferred Stock (Series&#160;B Preferred) and
    3,025,000&#160;shares of Series&#160;C Redeemable Convertible
    Preferred Stock (Series&#160;C Preferred). The Series&#160;C
    Preferred was issued on February&#160;28, 2008, at a purchase
    price of $4.50 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each holder of preferred stock generally votes with our common
    stock and is entitled to the number of votes equal to the number
    of shares of common stock into which the preferred stock could
    be converted. Each share of preferred stock is convertible at
    the option of the holder at the liquidation preference, as
    defined below, divided by the original issue price. Conversion
    is mandatory upon written consent or affirmative vote at a
    meeting of the holders of a majority of the then outstanding
    shares of Series&#160;A Preferred, or, with such consent of the
    holders of the Series&#160;A Preferred, immediately prior to the
    closing of a qualified initial public offering (IPO), as defined
    in our certificate of incorporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of Series&#160;A Preferred, Series&#160;A1 Preferred
    and Series&#160;B Preferred are entitled to receive cumulative
    cash dividends at the rate of 8% per annum of the original issue
    price if and when declared out of funds legally available by the
    board of directors. To the extent declared, the dividends are
    payable quarterly. Upon conversion, the holders may also elect
    to convert an amount equal to 62.5% of all then accrued and
    unpaid dividends into common stock at the applicable conversion
    rate. The holders of Series&#160;C Preferred are entitled to
    receive cumulative cash dividends at the rate of 8% per annum of
    the original issue price if and when declared by the board of
    directors, for the first 18&#160;months after issuance and are
    entitled to
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-20
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    noncumulative dividends thereafter. Dividends on Series&#160;C
    Preferred shares may not be paid until dividends have been
    declared and paid to holders of the Series&#160;A Preferred,
    Series&#160;A1 Preferred and Series&#160;B Preferred. On
    December&#160;31, 2008, dividends of $27.9&#160;million were
    declared by the board of directors. These dividends were
    distributed through the issuance of 16,294,894 common shares and
    subordinated notes of $11.1&#160;million. On December&#160;31,
    2009, dividends of $5.5&#160;million were declared by the board
    of directors. These dividends were distributed through the
    issuance of 2,837,345 common shares and payment of
    $2.5&#160;million in cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon any liquidation, dissolution, or winding up of the Company,
    the holders of the Series&#160;A Preferred, Series&#160;A1
    Preferred, Series&#160;B Preferred and Series&#160;C Preferred
    will be entitled to receive the original issue price plus all
    accrued and unpaid dividends (Liquidation Preference). The
    holders of the Series&#160;A Preferred, Series&#160;B Preferred
    and Series&#160;C Preferred are entitled to receive the full
    Liquidation Preference prior to any distribution to the holders
    of the Series&#160;A1 Preferred. Upon liquidation, after the
    holders of the Series&#160;A Preferred, Series&#160;B Preferred,
    Series&#160;C Preferred and Series&#160;A1 Preferred have been
    paid in full the Liquidation Preference, our remaining assets
    shall be distributed ratably among the holders of the common
    stock then outstanding and the holders of the Series&#160;A
    Preferred, Series&#160;A1 Preferred and Series&#160;B Preferred,
    on an as-converted basis, until the holders of such series of
    preferred stock have received an aggregate of three times the
    issue price per share of each such series of preferred stock
    (Participation Payment). After the holders of the Series&#160;A
    Preferred, Series&#160;A1 Preferred and Series&#160;B Preferred
    have received the Participation Payment, the holders of such
    series of preferred stock shall not have any further right as
    holders of preferred stock to participate in any distributions
    of our remaining assets, which shall be distributed ratably
    solely to the holders of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;A Preferred, Series&#160;B Preferred and
    Series&#160;C Preferred are redeemable at the option of the
    holders of the Series&#160;A Preferred beginning on
    December&#160;31, 2011, if we have not completed a liquidation
    or qualified IPO. Upon election by the holders of the
    Series&#160;A Preferred to redeem the Series&#160;A Preferred,
    the holders of the Series&#160;B Preferred and Series&#160;C
    Preferred may elect to redeem such series of preferred stock. If
    the holders of the Series&#160;A Preferred, Series&#160;B
    Preferred and Series&#160;C Preferred elect to redeem, the
    redemption price will generally be paid over four years. The
    Series&#160;A1 Preferred is redeemable and will be paid over a
    <FONT style="white-space: nowrap">12-month</FONT>
    period once the holders of the Series&#160;A Preferred and, if
    applicable, the Series&#160;B Preferred and Series&#160;C
    Preferred have elected and been paid for a redemption. The
    redemption price is the greater of the original purchase price
    per share plus all accrued dividends or the fair market value
    per share as of the most recent fiscal quarter ended prior to
    the date that the initial redemption notice is sent to the
    Company. Based on the estimated fair value of the Company as of
    December&#160;31, 2009, the redemption price of the
    Series&#160;A Preferred, Series&#160;A1 Preferred, Series&#160;B
    Preferred and Series&#160;C Preferred would exceed the original
    purchase price plus all accrued dividends as of the first
    redemption date by approximately $87.0&#160;million. As of
    December&#160;31, 2009, we have not provided for additional
    accretion of this amount for the Series&#160;A Preferred,
    Series&#160;A1 Preferred and Series&#160;B Preferred beyond the
    original purchase price plus accrued dividends, as we believe
    that it is probable that the Series&#160;A Preferred,
    Series&#160;A1 Preferred, Series&#160;B Preferred and
    Series&#160;C Preferred plus accrued dividends will be converted
    into common stock prior to the redemption date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2011, if we have not completed a
    liquidation or qualified IPO, and the Series&#160;A Preferred
    holders have not given notice to redeem the Series&#160;A
    Preferred, one Series&#160;A Preferred stockholder, who holds
    5,813,000&#160;shares, may require us to redeem all or any
    portion of its Series&#160;A Preferred shares. One hundred
    eighty days&#146; notice is required, and we may issue common
    stock to make redemption payments if cash is not sufficient for
    the redemption payments and ongoing business requirements.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Share
    Options and Warrants</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Option Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Amended and Restated 1998 Stock Incentive Plan (Stock
    Incentive Plan) provides for awards which may be granted in the
    form of incentive stock options, nonqualified stock options,
    restricted stock, stock appreciation rights and performance
    units with value based upon our performance. Stock options
    generally vest ratably over four years following the date of
    grant and expire ten years from the date of the grant. We also
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-21
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    grant awards to our directors, generally in the form of stock
    options, in accordance with the Board of Directors Policy (Board
    Plan). The options generally vest immediately and have a
    four-year term. Should a director leave the board, we have the
    right to repurchase shares as if the options vested on a pro
    rata basis. In 2009, we began issuing options that vest over
    four years with 75% vesting ratably over 15&#160;quarters and
    the remaining 25% vesting on the 16th quarter. All outstanding
    options were granted at exercise prices equal to or exceeding
    our estimate of the fair market value of our common stock at the
    date of grant. There were 150,000 outstanding director options
    at December&#160;31, 2009. In addition, there were 522,348
    shares of restricted stock that were issued and outstanding
    under the Stock Incentive Plan at December&#160;31, 2009
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes transactions under our Stock
    Incentive Plan and Board Plan:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
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<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Range of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Prices</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,467,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - $1.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,233,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50 - 2.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (968,782
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Forfeited/cancelled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (708,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,023,845
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 2.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,974,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00 - 3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (664,908
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Forfeited/cancelled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (863,811
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,469,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,568,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (355,783
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 3.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Forfeited/cancelled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (823,888
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,857,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00 - 3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, there were approximately
    732,000&#160;shares available for future grants under the Stock
    Incentive Plan and Board Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The weighted average grant-date fair value of options granted
    during 2007, 2008 and 2009 was $1.72, $2.90 and $2.63,
    respectively. The aggregate intrinsic value of stock options
    exercised in 2007, 2008 and 2009 was $0.9&#160;million,
    $0.6&#160;million and $0.4&#160;million, respectively. The
    aggregate intrinsic value of outstanding stock options was
    $12.9&#160;million as of December&#160;31, 2009. The aggregate
    intrinsic value of options exercisable was $12.1&#160;million as
    of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes outstanding stock options at
    December&#160;31, 2009, that are vested and expected to vest,
    non-vested, and stock options that are currently exercisable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fully Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Expected to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vest</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Non-Vested</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercisable</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of shares outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,294,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,155,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,701,617
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average remaining contractual life
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average price per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, the total future compensation cost
    related to nonvested stock options to be recognized in the
    consolidated statement of operations was $6.9&#160;million with
    a weighted average period over which these awards are expected
    to be recognized of 2.4&#160;years. Of that total,
    $2.4&#160;million, $2.2&#160;million, $1.7&#160;million and
    $0.6&#160;million will be recognized in 2010, 2011, 2012 and
    2013, respectively.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total number of stock options that vested during 2009 was
    2,980,120, and total fair value was $5.9&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, we granted 1,721,000 options to purchase
    shares of common stock. The exercise price for these options was
    $3.75 per share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock-Based
    Compensation Assumptions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have utilized the Black-Scholes option pricing model as the
    appropriate model for determining the fair value of stock-based
    awards. The awards granted in 2007, 2008, and 2009 were valued
    using the following assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk-free interest rates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.5-4.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected option life (in years)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50-60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Risk-free interest rate.</I> This is the average
    U.S.&#160;Treasury rate (having a term that most closely
    approximates the expected life of the option) for the period in
    which the option was granted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expected life of the options.</I> This is the period of time
    that the options granted are expected to remain outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dividend yield.</I> We have never declared or paid dividends
    on its common stock and do not anticipate paying dividends in
    the foreseeable future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expected volatility.</I> Volatility is a measure of the
    amount by which a financial variable such as a share price has
    fluctuated (historical volatility) or is expected to fluctuate
    (expected volatility) during a period. The Company was privately
    held during the periods presented and arrived at a volatility
    rate after considering historical and expected volatility rates
    of publicly traded peers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Purchase Warrants</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2005, we issued two-year fully exercisable warrants
    to purchase 175,000&#160;shares of common stock at $1.00 per
    share to two significant customers. The estimated fair value of
    the warrants was de minimis. In December 2007, the warrants were
    exercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 2007, we issued one-year fully exercisable warrants to
    purchase 150,000&#160;shares of common stock at $1.75 per share
    to a customer. The estimated fair value of the warrants was
    $47,000. The value of the warrants was recorded as a discount to
    unearned revenue and was amortized into revenue over the period
    of expected benefit with an order signed at that time. In June
    2008, the warrants were exercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the issuance of the Series&#160;A Preferred,
    we issued to current and prior stockholders stock purchase
    warrants representing the right to purchase an aggregate of
    9,156,000&#160;shares of our common stock, at an exercise price
    of $0.001 per share. These warrants contained a net-cash
    settlement provision and accordingly were recorded as a
    liability; however, due to various measures determining
    exercisability and vesting, the fair value of this liability was
    nominal. In February 2008, these warrants were amended to be
    fully vested at the time of the issuance of the Series&#160;C
    Preferred. In 2008, stockholders exercised warrants to purchase
    9,106,000&#160;shares of common stock, and the remaining 50,000
    warrants expired.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We issued a five-year warrant to purchase 450,000&#160;shares of
    common stock at $0.01 per share in connection with a 2004
    acquisition. As of December&#160;31, 2008 and 2009, 400,000 and
    zero shares, respectively, remained outstanding in connection
    with this warrant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We issued a five-year warrant to purchase 50,000 and
    25,000&#160;shares of common stock at $1.00 per share in
    connection with 2004 and 2005 amendments to our prior credit
    facility. In May 2009, the warrant to purchase
    50,000&#160;shares was automatically net exercised for 31,617
    shares of common stock. As of December&#160;31, 2009, the
    Company has 25,000 warrants outstanding. These warrants were
    automatically net exercised into common stock in March 2010.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Lease
    Commitments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We lease office space and equipment under capital and operating
    leases that expire at various times through 2016. We recognize
    lease expense for these leases on a straight-line basis over the
    lease terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The assets under capital lease are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Data processing and communications equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,679
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Accumulated depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,411
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Assets under capital lease, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate annual rental commitments at December&#160;31, 2009,
    under operating leases with initial or remaining non-cancelable
    lease terms greater than one year and capital leases are as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Operating<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital Leases</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Leases</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    538
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,782
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Minimum lease payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less amount representing average interest at 9.1%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (144
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,129
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,540
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rent expense was $3.1&#160;million, $4.5&#160;million and
    $5.1&#160;million for the years ended December&#160;31, 2007,
    2008 and 2009, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Guarantor
    Arrangements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreements whereby we indemnify our officers and
    directors for certain events or occurrences while the officer or
    director is or was serving at our request in such capacity. The
    term of the indemnification period is for the officer or
    director&#146;s lifetime. The maximum potential amount of future
    payments we could be required to make under these
    indemnification agreements is unlimited; however, we have a
    director and officer insurance policy that limits our exposure
    and enables us to recover a portion of any future amounts paid.
    As a result of our insurance policy coverage, we believe the
    estimated fair value of these indemnification agreements is
    minimal. Accordingly, we had no liabilities recorded for these
    agreements as of December&#160;31, 2008 and 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the ordinary course of our business, we enter into standard
    indemnification provisions in our agreements with our customers.
    Pursuant to these provisions, we indemnify our customers for
    losses suffered or incurred in connection with third-party
    claims that our products infringed upon any U.S. patent,
    copyright, trademark or other intellectual property right. Where
    applicable, we generally limit such infringement indemnities to
    those claims directed solely to our products and not in
    combination with other software or
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    products. With respect to our products, we also generally
    reserve the right to resolve such claims by designing a
    non-infringing alternative, by obtaining a license on reasonable
    terms, or by terminating our relationship with the customer and
    refunding the customer&#146;s fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The potential amount of future payments to defend lawsuits or
    settle indemnified claims under these indemnification provisions
    is unlimited in certain agreements; however, we believe the
    estimated fair value of these indemnity provisions is minimal,
    and, accordingly, we had no liabilities recorded for these
    agreements as of December&#160;31, 2008 and 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Litigation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to litigation and claims arising in the ordinary
    course of business. Our management believes that the probable
    resolution of any such litigation will not materially affect our
    consolidated financial position and results of operations.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Funds
    Held for Others</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our payment processing services, we collect
    tenant funds and subsequently remit these tenant funds to our
    customers after varying holding periods. These funds are settled
    through our Originating Depository Financial Institution (ODFI)
    custodial account at a major bank. As part of this processing,
    we earn interest from the time the money is collected from the
    tenants until the time of remittance to our customers&#146;
    accounts. This interest generated from the ODFI custodial
    account balances is included in revenue and was
    $0.2&#160;million, $0.1&#160;million and $0.0 in 2007, 2008, and
    2009, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The ODFI custodial account balances were $12.7&#160;million and
    $13.0&#160;million at December&#160;31, 2008 and 2009,
    respectively. The ODFI custodial account balances are included
    in our consolidated balance sheets as restricted cash. The
    corresponding liability for these custodial balances is
    reflected as customer deposits. In connection with the timing of
    our payment processing services, we are exposed to credit risk
    in the event of nonperformance by other parties, such as
    returned checks. We utilize credit analysis and other controls
    to manage the credit risk exposure. We have not experienced any
    credit losses to date. Any expected losses are included in our
    accounts receivable allowances on our consolidated balance sheet.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2007, we established a wholly owned subsidiary,
    RealPage Payment Processing Services, Inc. (RPPS), a
    bankruptcy-remote, special-purpose entity, and transferred the
    ODFI custodial accounts and all ACH transaction processing
    responsibilities to RPPS. We provide processing and
    administrative services to RPPS through a services agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The obligations of RPPS under the ODFI custodial account
    agreement are guaranteed by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our resident insurance products, we collect
    premiums from policy holders and subsequently remit the premium,
    net of our commission, to the underwriter. We maintain separate
    accounts for these transactions. We had $1.5&#160;million and
    $1.9&#160;million in restricted cash for years ended
    December&#160;31, 2008 and 2009, respectively and
    $1.5&#160;million and $2.2&#160;million in customer deposits
    related to these insurance products for years ended
    December&#160;31, 2008 and 2009, respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Net
    Income (Loss) Per Share</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net income (loss) per share is presented in conformity with the
    two-class method required for participating securities. Holders
    of Series&#160;A&#160;Preferred, Series&#160;A1&#160;Preferred,
    Series&#160;B&#160;Preferred and Series&#160;C&#160;Preferred
    are each entitled to receive 8% per annum cumulative dividends,
    payable prior and in preference to any dividends on any other
    shares of our capital stock. In the event a dividend is paid on
    common stock, holders of Series&#160;A&#160;Preferred,
    Series&#160;A1&#160;Preferred, Series&#160;B&#160;Preferred and
    Series&#160;C Preferred are entitled to a proportionate share of
    any such dividend as if they were holders of common shares (on
    an as-if converted basis). Holders of Series&#160;A Preferred,
    Series&#160;A1 Preferred, Series&#160;B Preferred and
    Series&#160;C Preferred do not share in loss of the Company.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the two-class method, basic net income per share
    attributable to common stockholders is computed by dividing the
    net income attributable to common stockholders by the weighted
    average number of common shares outstanding during the period.
    Net income attributable to common stockholders is determined by
    allocating undistributed earnings, calculated as net income less
    current period Series&#160;A&#160;Preferred,
    Series&#160;A1&#160;Preferred, Series&#160;B&#160;Preferred and
    Series&#160;C&#160;Preferred cumulative dividends, between the
    holders of common stock and Series&#160;A&#160;Preferred,
    Series&#160;A1&#160;Preferred, Series&#160;B&#160;Preferred and
    Series&#160;C&#160;Preferred. Diluted net income per share
    attributable to common stockholders is computed by using the
    weighted average number of common shares outstanding, including
    potential dilutive shares of common stock assuming the dilutive
    effect of outstanding stock options using the treasury stock
    method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pro forma basic and diluted net income per share were computed
    to give effect to the conversion of the
    Series&#160;A&#160;Preferred, Series&#160;A1&#160;Preferred,
    Series&#160;B&#160;Preferred and Series&#160;C&#160;Preferred
    using the as-if converted method into common stock as though the
    conversion had occurred as of January&#160;1, 2009, or original
    date of issuance, if later.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents the calculation of basic and
    diluted net income per share attributable to common stockholders
    and pro forma basic and diluted net income per share:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands, except per share amounts)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Numerator:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    8% cumulative dividends on participating preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,449
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,521
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Undistributed earnings allocated to participating preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,151
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net (loss) income attributable to common
    stockholders&#160;&#151; basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Denominator:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Weighted average common shares used in computing basic net
    income (loss) per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Weighted average common shares used in computing basic net
    income (loss) per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Add weighted average effect of dilutive securities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Stock options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Stock warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Weighted average common shares used in computing diluted net
    income (loss) per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net (loss) income per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shares used in computing pro forma net income per share
    (unaudited):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic weighted average common shares from above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Add assumed conversion of convertible preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Shares used in computing pro forma basic net income per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted weighted average common shares from above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Add conversion of Series&#160;A, Series&#160;A1, Series&#160;B,
    Series&#160;C convertible preferred stock excluded under the two
    class method
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Shares used in computing pro forma diluted net income per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma net income per share (unaudited):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We purchased transportation services of approximately $87,000,
    $34,000, and $44,000 in 2007, 2008 and 2009 from a significant
    stockholder and company controlled by our Chief Executive
    Officer.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision for income taxes consists of the following as of
    December 31:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Foreign
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,147
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,161
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Foreign
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total deferred taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,308
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total income tax provision (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The reconciliation of our income tax benefit computed at the
    U.S.&#160;federal statutory tax rate to the actual income tax
    expense is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expense derived by applying the Federal income tax rate to
    (loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,068
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (872
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    State income tax, net of federal benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Foreign income tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Change in valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27,036
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Nondeductible expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Losses not benefitted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,046
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    567
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (121
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (97
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (26,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Significant components of our deferred tax assets and
    liabilities are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Property, equipment, and software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    597
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Reserves and accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net operating loss carryforwards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,579
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Property, equipment, and software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,868
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (235
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,611
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,714
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net deferred tax assets before valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (31,563
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,527
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net deferred tax assets/(liabilities)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,132
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our management periodically evaluates the realizability of the
    deferred tax assets and recognizes the tax benefit when it is
    determined they are realizable. At such time, if it is
    determined that it is more likely than not that the deferred tax
    assets are realizable, the valuation allowance will be adjusted.
    In December 2009, based on current year income, and our
    projections of future income, we concluded it was more likely
    than not that certain of our deferred tax assets would be
    realizable, and therefore the valuation allowance was reduced by
    $27.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our federal net operating loss carryforwards of
    $67.2&#160;million will begin to expire in 2020. A change in
    ownership, as defined in Section&#160;382 of the Internal
    Revenue Code, may limit utilization of the federal net operating
    loss and research and development credit carryforwards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A cumulative change in ownership among material shareholders, as
    defined in Section 382 of the Internal Revenue Code during a
    three-year period, may limit utilization of the federal net
    operating loss and research and development credit
    carryforwards. Based on available information, the Company
    believes it is not currently subject the Section 382 limitation.
    If triggered under current conditions, the timing of utilization
    of our net operating loss may be impacted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Uncertain
    Tax Positions</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective January&#160;1, 2007, we adopted a new accounting
    standard relating to the accounting for uncertain tax positions.
    We recorded no additional tax liability as a result of the
    adoption of this standard and no adjustments to the
    January&#160;1, 2007 balance of retained deficit, and therefore
    no accrued interest and penalties recognized as of
    January&#160;1, 2007. At December&#160;31, 2008 and 2009, we had
    no unrecognized tax benefits. Our policy is to include interest
    and penalties related to unrecognized tax benefits in income tax
    expense, and as of December&#160;31, 2008 and December&#160;31,
    2009, there were no accrued interest and penalties.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file consolidated and separate tax returns in the
    U.S.&#160;federal jurisdiction and in several state
    jurisdictions and one foreign jurisdiction. We are no longer
    subject to U.S.&#160;federal income tax examinations for years
    before 2006 and are no longer subject to state and local income
    tax examinations by tax authorities for years before 2005. We
    are not currently under audit for federal, state or any foreign
    jurisdictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plans</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 1998, our board of directors approved a defined contribution
    plan that provides retirement benefits under the provisions of
    Selection 401(k) of the Internal Revenue Code. Our 401(k) Plan
    (Plan) covers substantially all employees who meet a minimum
    service requirement. Under the Plan, we can elect to make
    voluntary contributions. Contributions of $0.2&#160;million,
    $0.3&#160;million and $0.4&#160;million were made by us in 2007,
    2008 and 2009, respectively.
</DIV>
<!-- /XBRL,ns -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <IMG src="d71244d7124400.gif" alt=""><B><FONT style="font-family: 'Times New Roman', Times">
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Not Required in Prospectus</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Expenses of Issuance and Distribution</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents the costs and expenses, other than
    underwriting discounts and commissions, payable by us in
    connection with the sale of common stock being registered. All
    amounts are estimates except the SEC registration fee and the
    FINRA filing fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="88%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC Registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,695.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FINRA filing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    NASDAQ Global Market listing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing and engraving expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Blue sky fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Custodian and transfer agent fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    *&#160;</TD>
    <TD align="left">
    To be filed by amendment.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;145 of the Delaware General Corporation Law
    authorizes a corporation&#146;s board of directors to grant, and
    authorizes a court to award, indemnity to officers, directors
    and other corporate agents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As permitted by Section&#160;102(b)(7) of the Delaware General
    Corporation Law, the registrant&#146;s amended and restated
    certificate of incorporation to be effective upon the completion
    of this offering includes provisions that eliminate the personal
    liability of its directors and officers for monetary damages for
    a breach of their fiduciary duty as directors and officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, as permitted by Section&#160;145 of the Delaware
    General Corporation Law, the registrant&#146;s amended and
    restated bylaws to be effective upon the completion of this
    offering provide that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The registrant shall indemnify its directors and officers for
    serving the registrant in those capacities or for serving other
    business enterprises at the registrant&#146;s request, to the
    fullest extent permitted by Delaware law. Delaware law provides
    that a corporation may indemnify such person if such person
    acted in good faith and in a manner such person reasonably
    believed to be in or not opposed to the best interests of the
    registrant and, with respect to any criminal proceeding, had no
    reasonable cause to believe such person&#146;s conduct was
    unlawful.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The registrant may, in its discretion, indemnify employees and
    agents in those circumstances in which indemnification is not
    required by law.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The registrant will be required to advance expenses, as
    incurred, to its directors and officers in connection with
    defending a proceeding, except that such director or officer
    shall undertake to repay such advances if it is ultimately
    determined that such person is not entitled to indemnification.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The registrant will not be obligated pursuant to the bylaws to
    indemnify a person with respect to proceedings initiated by that
    person, except with respect to proceedings authorized by the
    registrant&#146;s board of directors. The rights conferred in
    the bylaws are not exclusive, and the registrant is authorized
    to enter into indemnification agreements with its directors,
    officers, employees and agents and to obtain insurance to
    indemnify such persons.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The registrant may not retroactively amend the bylaw provisions
    to reduce its indemnification obligations to directors,
    officers, employees and agents.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the completion of this offering, the registrant plans
    to enter into separate indemnification agreements with each of
    its directors and executive officers that provide the maximum
    indemnity allowed to directors and executive officers by
    Section&#160;145 of the Delaware General Corporation Law and
    also provides for certain additional procedural protections. The
    registrant also maintains insurance to insure directors and
    officers against certain liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These indemnification provisions and the indemnification
    agreements to be entered into between the registrant and its
    officers and directors may be sufficiently broad to permit
    indemnification of the registrant&#146;s officers and directors
    for liabilities (including reimbursement of expenses incurred)
    arising under the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriting agreement filed as Exhibit&#160;1.1 to this
    registration statement provides for indemnification by the
    underwriters of the registrant and its officers and directors
    for certain liabilities arising under the Securities Act and
    otherwise.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Recent
    Sales of Unregistered Securities</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;From April&#160;29, 2007 through April&#160;29, 2010,
    the registrant granted to its employees and consultants options
    to purchase an aggregate of 11,076,500&#160;shares of its common
    stock under the registrant&#146;s 1998 Stock Incentive Plan at
    prices ranging from $1.50 per share to $3.75 per share for an
    aggregate purchase price of $34,907,625.00.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;From April&#160;29, 2007 through April&#160;29, 2010,
    the registrant sold and issued to its employees and consultants
    an aggregate of 1,020,598&#160;shares of its common stock
    pursuant to option exercises under the registrant&#146;s 1998
    Stock Incentive Plan at prices ranging from $1.00 per share to
    $3.50 per share for an aggregate purchase price of $1,239,620.75.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;From April&#160;29, 2007 through April&#160;29, 2010,
    the registrant granted to its directors options to purchase an
    aggregate of 320,000&#160;shares of our common stock at prices
    ranging from $3.00&#160;per share to $3.75 per share for an
    aggregate purchase price of $1,050,000.00.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;From April&#160;29, 2007 through April&#160;29, 2010,
    the registrant sold and issued to its directors an aggregate of
    1,100,000&#160;shares of its common stock pursuant to option
    exercises at prices ranging from $1.00 per share to $3.00 per
    share for an aggregate purchase price of $1,200,000.00.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;On February&#160;22, 2008, the registrant issued and
    sold to seven accredited investors an aggregate of
    3,025,000&#160;shares of our Series&#160;C Convertible Preferred
    Stock at a price of $4.50 per share for an aggregate price of
    $13,612,500.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;From April&#160;29, 2007 through April&#160;29, 2010,
    the registrant sold and issued to 11 accredited investors an
    aggregate of 9,930,448 shares of its common stock pursuant to
    warrant exercises at prices ranging from $0.001 per share to
    $1.75 per share for an aggregate purchase price of $500,304.25.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;On October&#160;21, 2009, the registrant issued
    666,667&#160;shares of its common stock to five of its current
    or former employees and consultants as compensation for the
    achievement of certain performance milestones agreed to in
    connection with the registrant&#146;s acquisition of
    OpsTechnology, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;On October&#160;28, 2009, the registrant awarded and
    issued 22,348 restricted shares of its common stock to employees
    under the registrant&#146;s 1998 Stock Incentive Plan in
    connection with our acquisition of Propertyware, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;On October&#160;28, 2009, the registrant awarded and
    issued 500,000 restricted shares of its common stock to
    employees who are also accredited investors under the
    registrant&#146;s 1998 Stock Incentive Plan in connection with
    our acquisition of Propertyware, Inc.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;On October&#160;28, 2009, the registrant issued 977,652
    restricted shares of its common stock to nine accredited
    investors in partial consideration of the registrant&#146;s
    acquisition of Propertyware, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;On December&#160;31, 2008, the registrant issued an
    aggregate of 16,294,894&#160;shares of its common stock to
    holders of its convertible preferred stock in partial payment of
    cumulative dividends accrued on the convertible preferred stock
    through such date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;On December&#160;31, 2009, the registrant issued an
    aggregate of 2,837,345&#160;shares of its common stock to
    holders of its convertible preferred stock in partial payment of
    cumulative dividends accrued on the convertible preferred stock
    through such date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;On April&#160;1, 2010, the registrant awarded and
    issued an aggregate of 26,666 restricted shares of its common
    stock to the registrant&#146;s independent directors in
    accordance with the registrant&#146;s independent director
    compensation plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;On April&#160;23, 2010, the registrant issued an
    aggregate of 685,276&#160;shares of its common stock to holders
    of its Series&#160;A Convertible Preferred Stock, Series&#160;A1
    Convertible Preferred Stock and Series&#160;B Convertible
    Preferred Stock in partial payment of cumulative dividends
    accrued on such series of convertible preferred stock through
    March&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of the foregoing transactions involved any underwriters,
    underwriting discounts or commissions, or any public offering,
    and the registrant believes the transactions were exempt from
    registration under the Securities Act in reliance on
    Rule&#160;701 promulgated under the Securities Act as
    transactions pursuant to compensatory benefit plans and
    contracts relating to compensation or in reliance on
    Section&#160;4(2) of the Securities Act as transactions by an
    issuer not involving any public offering. The recipients of
    securities in each such transaction represented their intention
    to acquire the securities for investment only and not with a
    view to or for sale in connection with any distribution thereof
    and appropriate legends were affixed to the stock certificates
    and option agreements issued in such transactions. All
    recipients had adequate access, through their relationships with
    us, to information about us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits
    and Financial Statement Schedules</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(a)&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Exhibits</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation of the
    Registrant currently in effect
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Amended and Restated Certificate of Incorporation of the
    Registrant to be effective upon the completion of this offering
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bylaws of the Registrant in effect before the completion of this
    offering
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .4*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Amended and Restated Bylaws of the Registrant to be
    effective upon the completion of this offering
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Common Stock certificate of the Registrant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Shareholders&#146; Agreement among the Registrant and certain
    stockholders, dated December 1, 1998, as amended July 16, 1999
    and November 3, 2000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Second Amended and Restated Registration Rights Agreement among
    the Registrant and certain stockholders, dated February 22, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fourth Amended and Restated Shareholders Agreement among the
    Registrant and certain stockholders, dated March&#160;17, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III, L.P. regarding management rights, dated
    December 14, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .6
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III-A, L.P. regarding management rights, dated
    December 14, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Wilson Sonsini Goodrich &#038; Rosati, Professional
    Corporation
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Indemnification Agreement to be entered into between the
    Registrant and each of its directors and officers
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated 1998 Stock Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2A+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Notice of Stock Option Grant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2B+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Notice of Grant of Restricted Shares
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2C+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Qualified Stock Option Agreement (Second Series)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2D+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Qualified Stock Option Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Director&#146;s Nonqualified Stock Option Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2010 Equity Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2009 Management Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2010 Management Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Stand-Alone Stock Option Agreement between the Registrant and
    Peter Gyenes, dated February&#160;25, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated October&#160;27, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated February&#160;26, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Notice of Stock Option Grant under the Amended and Restated 1998
    Stock Incentive Plan between the Registrant and Timothy J.
    Barker dated February&#160;25, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and Stephen T. Winn,
    dated December&#160;30, 2003
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and Timothy J.
    Barker, dated October&#160;31, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Employment Agreement between the Registrant and
    Timothy J. Barker, dated January&#160;1, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and William E.
    Van&#160;Valkenberg, dated September&#160;24, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Master Agreement for Consulting Services between the Registrant
    and William E. Van&#160;Valkenberg, dated June&#160;28, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and Ashley Chaffin
    Glover, dated March&#160;3, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Multifamily Internet Ventures, LLC
    and Dirk D. Wakeham, dated April&#160;12, 2007 and amended
    April&#160;12, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .18
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Credit Agreement among the Registrant, Wells Fargo Foothill, LLC
    and Comerica Bank dated, September&#160;3, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Security Agreement among the Registrant, OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September&#160;3, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .20
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Continuing Guaranty among OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September&#160;3, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Waiver and First Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica Bank, dated
    September&#160;16, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Continuing Guaranty between A.L. Wizard, Inc. and Wells
    Fargo Foothill, LLC, dated September&#160;25, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Waiver and Second Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica bank, dated
    October&#160;15, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Continuing Guarantee between Propertyware, Inc. and
    Wells Fargo Foothill, LLC, dated November&#160;6, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .25
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Supplement No.&#160;2 to Security Agreement between
    Propertyware, Inc. and Wells Fargo Foothill, LLC, dated
    November&#160;6, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .26
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent and Third Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC, and Comerica Bank dated
    December&#160;23, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .27
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Waiver, Consent and Fourth Amendment to Credit Agreement among
    the Registrant, Wells Fargo Capital Finance, LLC (f/k/a Wells
    Fargo Foothill, LLC) and Comerica Bank dated February&#160;10,
    2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .28
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Security Agreement between 43642&#160;Yukon, Inc. and
    Wells Fargo Capital Finance, LLC (f/k/a Wells Fargo Foothill,
    LLC), dated February&#160;10, 2010
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .29
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Guarantee between 43642 Yukon, Inc. and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February&#160;10, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .30
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Share Pledge between the Registrant and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February&#160;10, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .31
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Note Purchase Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August&#160;1, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .32
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Security Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August&#160;1, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .33
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Secured Promissory Note issued by the Registrant to HV
    Capital Investors, L.L.C. on August&#160;1, 2008 and
    September&#160;19, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .34
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Note Purchase Agreement between the
    Registrant and HV Capital Investors, L.L.C., dated
    January&#160;20, 2009 and effective as of December&#160;31, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .35
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Unsecured Subordinated Promissory Note (Series A and
    Series A1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .35A
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series A and Series A1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .36
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Unsecured Subordinated Promissory Note (Series B and
    Series C)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .36A
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series B and Series C)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .37
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Unsecured Subordinated Promissory Note (April&#160;2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .37A
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Schedule of Holders of Unsecured Subordinated Promissory Notes
    (April&#160;2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .38
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment No. 1 to Unsecured Subordinated Promissory Notes among
    the Registrant and certain holders of its Unsecured Subordinated
    Promissory Notes
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .39
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Lease Agreement between the Registrant and CB Parkway Business
    Center&#160;V, Ltd., dated July&#160;23, 1999
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .40
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center&#160;V, Ltd., dated November&#160;29,
    1999
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .41
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Second Amendment to Lease Agreement between the Registrant and
    CB Parkway Business Center&#160;V, Ltd., dated January&#160;30,
    2006
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .42
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Third Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center&#160;V, Ltd., dated August&#160;28, 2006
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .43
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fourth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated November 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .44
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fifth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated February&#160;4, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .45
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Sixth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated March&#160;30, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .46
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Lease Agreement between the Registrant and Savoy IBP&#160;8,
    Ltd., dated August&#160;28, 2006
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .47
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Lease Agreement among the Registrant,
    ARI-International Business Park, LLC, ARI -IBP&#160;1, LLC, ARI
    - IBP&#160;2, LLC, ARI - IBP&#160;3, LLC, ARI - IBP&#160;4, LLC,
    ARI - IBP&#160;5, LLC, ARI - IBP&#160;6, LLC, ARI - IBP&#160;7,
    LLC, ARI - IBP&#160;8, LLC, ARI - IBP&#160;9, LLC, ARI -
    IBP&#160;11, LLC and ARI - IBP&#160;12, LLC, dated
    December&#160;28, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .48&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Master Services Agreement between the Registrant and DataBank
    Holdings Ltd., dated May&#160;31, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Subsidiaries of the Registrant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Ernst &#038; Young LLP, Independent Registered Public
    Accounting Firm
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Wilson Sonsini Goodrich &#038; Rosati, Professional
    Corporation (contained in Exhibit&#160;5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (contained in the signature page to this
    registration statement)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    +&#160;</TD>
    <TD align="left">
    Indicates management contract or compensatory plan or
    arrangement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    *&#160;
</TD>
    <TD align="left">    To be filed by amendment.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#134;&#160;
</TD>
    <TD align="left">    Confidential treatment has been requested for portions of this
    exhibit. These portions have been omitted from the Registration
    Statement and submitted separately to the Securities and
    Exchange Commission.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(b)&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Financial
    Statement Schedules</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following schedule is filed as part of this registration
    statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All other schedules have been omitted because the information
    required to be presented in them is not applicable or is shown
    in the financial statements or related notes.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SCHEDULE&#160;II&#160;&#151;
    VALUATION AND QUALIFYING ACCOUNTS<BR>
    REALPAGE, INC.<BR>
    December&#160;31, 2009<BR>
    (in thousands)<BR>
    Allowance for Doubtful Accounts</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additions<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Balance at<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Charged to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additions<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Balance at<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beginning<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Costs and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Due to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>End of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expenses</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquisitions</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deduction(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Year ended December 31:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,289
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Uncollectible accounts written off, net of recoveries.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes to provide to the
    underwriter at the closing specified in the underwriting
    agreements, certificates in such denominations and registered in
    such names as required by the underwriter to permit prompt
    delivery to each purchaser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liabilities arising under the
    Securities Act may be permitted to directors, officers and
    controlling persons of the registrant pursuant to the foregoing
    provisions, or otherwise, the registrant has been advised that
    in the opinion of the SEC such indemnification is against public
    policy as expressed in the Securities Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Securities Act and
    will be governed by the final adjudication of such issue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;For purposes of determining any liability under the
    Securities Act, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule&#160;430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule&#160;424(b)(1) or (4)&#160;or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;For the purpose of determining any liability under the
    Securities Act, each post-effective amendment that contains a
    form of prospectus shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time shall be deemed to be
    the initial <I>bona fide </I>offering thereof.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Carrollton, State of Texas, on this
    29<SUP style="font-size: 85%; vertical-align: top">th</SUP>&#160;day

    of April, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    REALPAGE, INC.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Stephen
    T. Winn</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 3pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stephen T. Winn
</DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Chairman of the Board, Chief Executive Officer and Director
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">POWER OF
    ATTORNEY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose
    signature appears below constitutes and appoints Stephen T. Winn
    and Timothy J. Barker, and each of them, his true and lawful
    attorneys-in-fact and agents with full power of substitution,
    for him and in his name, place and stead, in any and all
    capacities, to sign any and all amendments (including post
    effective amendments) to this registration statement, and to
    sign any registration statement for the same offering covered by
    this registration statement that is to be effective on filing
    pursuant to Rule&#160;462(b) promulgated under the Securities
    Act of 1933, as amended, and all post-effective amendments
    thereto, and to file the same, with all exhibits thereto and all
    documents in connection therewith, with the SEC, granting unto
    said attorneys-in-fact and agents, and each of them, full power
    and authority to do and perform each and every act and thing
    requisite and necessary to be done in and about the premises, as
    fully to all intents and purposes as he might or could do in
    person, hereby ratifying and confirming all that said
    attorneys-in-fact and agents or any of them, or his or their
    substitute or substitutes, may lawfully do or cause to be done
    by virtue hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed by the
    following persons on behalf of the registrant and in the
    capacities and on the dates indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Stephen
    T. Winn</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Stephen
    T. Winn
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chairman of the Board, Chief Executive Officer, and Director
    (Principal<BR>
    Executive Officer)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Timothy
    J. Barker</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Timothy
    J. Barker
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Financial Officer and Treasurer (Principal Financial and
    Accounting Officer)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Alfred
    R. Berkeley, III</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Alfred
    R. Berkeley,&#160;III
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Richard
    M. Berkeley</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Richard
    M. Berkeley
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Peter
    Gyenes</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Peter
    Gyenes
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Jeffrey
    T. Leeds</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Jeffrey
    T. Leeds
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Jason
    A. Wright</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Jason
    A. Wright
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation of the
    Registrant currently in effect
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Amended and Restated Certificate of Incorporation of the
    Registrant to be effective upon the completion of this offering
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bylaws of the Registrant in effect before the completion of this
    offering
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .4*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Amended and Restated Bylaws of the Registrant to be
    effective upon the completion of this offering
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Common Stock certificate of the Registrant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Shareholders&#146; Agreement among the Registrant and certain
    stockholders, dated December 1, 1998, as amended July&#160;16,
    1999 and November&#160;3, 2000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Second Amended and Restated Registration Rights Agreement among
    the Registrant and certain stockholders, dated February&#160;22,
    2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fourth Amended and Restated Shareholders Agreement among the
    Registrant and certain stockholders, dated March&#160;17, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III, L.P. regarding management rights, dated
    December&#160;14, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .6
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III-A, L.P. regarding management rights, dated
    December&#160;14, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Wilson Sonsini Goodrich &#038; Rosati, Professional
    Corporation
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Indemnification Agreement to be entered into between the
    Registrant and each of its directors and officers
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated 1998 Stock Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2A+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Notice of Stock Option Grant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2B+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Notice of Grant of Restricted Shares
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2C+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Qualified Stock Option Agreement (Second Series)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2D+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Qualified Stock Option Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Director&#146;s Nonqualified Stock Option Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2010 Equity Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2009 Management Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2010 Management Incentive Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Stand-Alone Stock Option Agreement between the Registrant and
    Peter Gyenes, dated February&#160;25, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated October&#160;27, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated February&#160;26, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Notice of Stock Option Grant under the Amended and Restated 1998
    Stock Incentive Plan between the Registrant and Timothy J.
    Barker dated February&#160;25, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and Stephen T. Winn,
    dated December&#160;30, 2003
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and Timothy J.
    Barker, dated October&#160;31, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Employment Agreement between the Registrant and
    Timothy J. Barker, dated January&#160;1, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and William E.
    Van&#160;Valkenberg, dated September&#160;24, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Master Agreement for Consulting Services between the Registrant
    and William E. Van&#160;Valkenberg, dated June&#160;28, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between the Registrant and Ashley Chaffin
    Glover, dated March&#160;3, 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17+
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Multifamily Internet Ventures, LLC
    and Dirk D. Wakeham, dated April&#160;12, 2007 and amended
    April&#160;12, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .18
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Credit Agreement among the Registrant, Wells Fargo Foothill, LLC
    and Comerica Bank dated, September&#160;3, 2009
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Security Agreement among the Registrant, OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September&#160;3, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .20
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Continuing Guaranty among OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September&#160;3, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Waiver and First Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica Bank, dated
    September&#160;16, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Continuing Guaranty between A.L. Wizard, Inc. and Wells
    Fargo Foothill, LLC, dated September&#160;25, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Waiver and Second Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica bank, dated
    October&#160;15, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Continuing Guarantee between Propertyware, Inc. and
    Wells Fargo Foothill, LLC, dated November&#160;6, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .25
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Supplement No. 2 to Security Agreement between Propertyware,
    Inc. and Wells Fargo Foothill, LLC, dated November&#160;6, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .26
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent and Third Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC, and Comerica Bank dated
    December&#160;23, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .27
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Waiver, Consent and Fourth Amendment to Credit Agreement among
    the Registrant, Wells Fargo Capital Finance, LLC (f/k/a Wells
    Fargo Foothill, LLC) and Comerica Bank dated February&#160;10,
    2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .28
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    General Security Agreement between 43642 Yukon, Inc. and Wells
    Fargo Capital Finance, LLC (f/k/a Wells Fargo Foothill, LLC),
    dated February&#160;10, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .29
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Guarantee between 43642 Yukon, Inc. and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February&#160;10, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .30
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Share Pledge between the Registrant and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February&#160;10, 2010
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .31
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Note Purchase Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August&#160;1, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .32
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Security Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August&#160;1, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .33
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Secured Promissory Note issued by the Registrant to HV
    Capital Investors, L.L.C. on August&#160;1, 2008 and
    September&#160;19, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .34
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Note Purchase Agreement between the
    Registrant and HV Capital Investors, L.L.C., dated
    January&#160;20, 2009 and effective as of December&#160;31, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .35
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Unsecured Subordinated Promissory Note (Series A and
    Series A1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .35A
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series A and Series A1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .36
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Unsecured Subordinated Promissory Note (Series B and
    Series C)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .36A
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series B and Series C)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .37
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Unsecured Subordinated Promissory Note (April&#160;2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .37A
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Schedule of Holders of Unsecured Subordinated Promissory Notes
    (April&#160;2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .38
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment No.&#160;1 to Unsecured Subordinated Promissory Notes
    among the Registrant and certain holders of its Unsecured
    Subordinated Promissory Notes
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .39
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Lease Agreement between the Registrant and CB Parkway Business
    Center&#160;V, Ltd., dated July&#160;23, 1999
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .40
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center&#160;V, Ltd., dated November&#160;29,
    1999
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .41
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Second Amendment to Lease Agreement between the Registrant and
    CB Parkway Business Center&#160;V, Ltd., dated January&#160;30,
    2006
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .42
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Third Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center&#160;V, Ltd., dated August&#160;28, 2006
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .43
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fourth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated November 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .44
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fifth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated February&#160;4, 2009
</TD>
</TR>
</TABLE>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .45
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Sixth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated March&#160;30, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .46
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Lease Agreement between the Registrant and Savoy IBP&#160;8,
    Ltd., dated August&#160;28, 2006
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .47
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Lease Agreement among the Registrant,
    ARI-International Business Park, LLC, ARI -IBP&#160;1, LLC, ARI
    - IBP&#160;2, LLC, ARI - IBP&#160;3, LLC, ARI - IBP&#160;4, LLC,
    ARI - IBP&#160;5, LLC, ARI - IBP&#160;6, LLC, ARI - IBP&#160;7,
    LLC, ARI - IBP&#160;8, LLC, ARI - IBP&#160;9, LLC, ARI -
    IBP&#160;11, LLC and ARI - IBP&#160;12, LLC, dated
    December&#160;28, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .48&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Master Services Agreement between the Registrant and DataBank
    Holdings Ltd., dated May&#160;31, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Subsidiaries of the Registrant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Ernst &#038; Young LLP, Independent Registered Public
    Accounting Firm
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Wilson Sonsini Goodrich &#038; Rosati, Professional
    Corporation (contained in Exhibit 5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (contained in the signature page to this
    registration statement)
</TD>
</TR>
</TABLE>

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</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    +&#160;</TD>
    <TD align="left">
    Indicates management contract or compensatory plan or
    arrangement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    *&#160;
</TD>
    <TD align="left">    To be filed by amendment.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#134;&#160;
</TD>
    <TD align="left">    Confidential treatment has been requested for portions of this
    exhibit. These portions have been omitted from the Registration
    Statement and submitted separately to the Securities and
    Exchange Commission.
</TD>
</TR>

</TABLE>
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{"company-data": {"conformed-name": "REALPAGE INC", "cik": "0001286225", "irs-number": "752788861", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-166397", "film-number": "10782892"}, "business-address": {"street1": "4000 INTERNATIONAL PARKWAY", "city": "CARROLLTON", "state": "TX", "zip": "75007-1913", "phone": "972-820-3923"}, "mail-address": {"street1": "4000 INTERNATIONAL PARKWAY", "city": "CARROLLTON", "state": "TX", "zip": "75007-1913"}}
sv1
Table of Contents
As filed with the Securities and
    Exchange Commission on April 29, 2010
Registration
    No. 333-
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, D.C.
    20549
Form S-1
REGISTRATION
    STATEMENT
Under
The Securities Act of
    1933
RealPage, Inc.
(Exact name of Registrant as
    specified in its charter)
Delaware
7372
75-2788861
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
4000 International
    Parkway
Carrollton, Texas
    75007
Tel:
    (972) 820-3000
(Address, including zip code,
    and telephone number, including area code, of Registrant's
    principal executive offices)
Timothy J. Barker
4000 International
    Parkway
Carrollton, Texas
    75007
Tel:
    (972) 820-3000
(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)
Copies to:
Paul R. Tobias
Wilson Sonsini Goodrich & Rosati,
Professional Corporation
900 S. Capital of Texas Hwy.
Las Cimas IV, Fifth Floor
Austin, Texas 78746
Tel: (512) 338-5400
William H. Hinman Jr.
Simpson Thacher & Bartlett LLP
2550 Hanover Street
Palo Alto, California 94304
Tel: (650) 251-5000
Approximate date of commencement of proposed sale to the
    public:
As soon as practicable after the
    effective date of this Registration Statement.
If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule 415 under the Securities Act of 1933, check the
    following
    box.
o
If this Form is filed to register additional securities for an
    offering pursuant to Rule 462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in
    Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated
    filer
o
Accelerated
    filer
o
Non-accelerated
    filer
þ
Smaller
    reporting
    company
o
(Do
    not check if a smaller reporting company)
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Amount of
Title of Each Class of
Aggregate Offering
Registration
Securities to be Registered
Price
(1)(2)
Fee
Common Stock, $0.001 par value per share
$150,000,000
$10,695.00
(1)
Includes offering price of shares
    issuable upon exercise of the underwriters' over-allotment
    option.
(2)
Estimated solely for the purpose of
    calculating the amount of the registration fee in accordance
    with Rule 457(o) of the Securities Act of 1933.
The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section 8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Commission,
    acting pursuant to said Section 8(a), may determine.
Table of Contents
The
information in this prospectus is not complete and may be
changed. Neither we nor the selling stockholders may sell these
securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities, and neither we nor the
selling stockholders are soliciting an offer to buy these
securities in any state where the offer or sale is not
permitted.
SUBJECT
    TO COMPLETION, DATED APRIL 29, 2010
Shares
RealPage,
    Inc.
Common
    Stock
This is the initial
    public offering of our common stock. We are
    selling                shares
    of common stock and the selling stockholders identified in this
    prospectus are
    selling                shares
    of common stock. We will not receive any proceeds from the sale
    of shares of common stock by the selling stockholders.
Prior to this
    offering, there has been no public market for our common stock.
    The initial public offering price of our common stock is
    expected to be between $    and
    $    per share. We will apply to list our common
    stock on the NASDAQ Global Market under the symbol
    "     ."
The underwriters
    have an option to purchase a maximum
    of                  additional
    shares from the selling stockholders to cover over-allotments.
Investing in our
    common stock involves risks.  See "Risk
    Factors" on page 10.
Underwriting
Price to
Discounts and
Proceeds to
Proceeds to
Public
Commissions
RealPage
Selling
    Stockholders
Per share
$
$
$
$
Total
$
$
$
$
Delivery of the
    shares of common stock will be made on or
    about         ,
    2010.
Neither the
    Securities and Exchange Commission nor any state securities
    commission has approved or disapproved of these securities or
    determined if this prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense.
Credit
    Suisse
Deutsche Bank Securities
William
    Blair & Company
RBC Capital Markets
JMP
    Securities
Pacific Crest Securities
The date of this
    prospectus
    is          ,
    2010.
TABLE OF
    CONTENTS
Page
Prospectus
    Summary
1
Risk
    Factors
10
Special
    Note Regarding Forward-Looking Statements and Industry
    Data
35
Use of
    Proceeds
36
Dividend
    Policy
36
Capitalization
38
Dilution
40
Selected
    Consolidated Financial Data
42
Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations
46
Business
72
Management
89
Executive
    Compensation
97
Certain
    Relationships and Related Party Transactions
120
Principal
    and Selling Stockholders
123
Description
    of Capital Stock
127
Shares
    Eligible for Future Sale
132
Material
    U.S. Federal Income Tax and Estate Tax Consequences to Non-U.S.
    Holders
134
Underwriting
138
Notice to
    Canadian Residents
144
Legal
    Matters
145
Experts
145
Where You
    Can Find Additional Information
145
Index to
    Consolidated Financial Statements
F-1
You should rely only on the information contained in this
    document or to which we have referred you. We have not
    authorized anyone to provide you with information that is
    different. This document may only be used where it is legal to
    sell these securities. The information in this document may only
    be accurate on the date of this document.
Dealer
    Prospectus Delivery Obligation
Until          ,
    2010 (25 days after the commencement of this offering), all
    dealers that effect transactions in these securities, whether or
    not participating in this offering, may be required to deliver a
    prospectus. This is in addition to the dealer's obligation
    to deliver a prospectus when acting as an underwriter and with
    respect to unsold allotments or subscriptions.
Table of Contents
PROSPECTUS
    SUMMARY
This summary highlights information contained elsewhere in
    this prospectus and does not contain all of the information you
    should consider in making your investment decision. You should
    read this entire prospectus carefully, especially the risks of
    investing in our common stock discussed under "Risk
    Factors" and the consolidated financial statements and
    related notes included elsewhere in this prospectus, before
    making an investment decision.
Company
    Overview
We are a leading provider of on demand software solutions for
    the rental housing industry. Our broad range of property
    management solutions enables owners and managers of
    single-family and a wide variety of multi-family rental property
    types to manage their marketing, pricing, screening, leasing,
    accounting, purchasing and other property operations. Our on
    demand software solutions are delivered through an integrated
    software platform that provides a single point of access and a
    shared repository of prospect, resident and property data. By
    integrating and streamlining a wide range of complex processes
    and interactions among the rental housing ecosystem of owners,
    managers, prospects, residents and service providers, our
    platform optimizes the property management process and improves
    the experience for all of these constituents.
Our solutions enable property owners and managers to increase
    revenues and reduce operating costs through higher occupancy,
    improved pricing methodologies, new sources of revenue from
    ancillary services, improved collections and more integrated and
    centralized processes. As of December 31, 2009, over 5,000
    customers used one or more of our on demand software solutions
    to help manage the operations of approximately 4.6 million
    rental housing units. Our customers include nine of the ten
    largest multi-family property management companies in the United
    States, ranked as of January 1, 2009, based on number of
    units managed.
We sell our solutions through our direct sales organization. Our
    total revenues were approximately $83.6 million,
    $112.6 million and $140.9 million in 2007, 2008 and
    2009, respectively. In the same years, we had operating (loss)
    income of approximately ($1.6 million), ($0.4 million)
    and $6.9 million, respectively, and net (loss) income of
    approximately ($3.1 million), ($3.2 million) and
    $28.4 million, respectively. Net income for 2009 included a
    discrete tax benefit of approximately $26.0 million as a
    result of a reduction of our net deferred tax assets valuation
    allowance.
Our Adjusted EBITDA in 2007, 2008 and 2009 was approximately
    $6.0 million, $13.1 million and $25.6 million,
    respectively. We believe Adjusted EBITDA is useful to investors
    in evaluating our operating performance. Our management uses
    Adjusted EBITDA in conjunction with accounting principles
    generally accepted in the United States, or GAAP, operating
    performance measures as part of its overall assessment of our
    performance for planning purposes, including the preparation of
    our annual operating budget, to evaluate the effectiveness of
    our business strategies and to communicate with our board of
    directors concerning our financial performance. Adjusted EBITDA
    should not be considered as an alternative financial measure to
    net (loss) income, which is the most directly comparable
    financial measure calculated in accordance with GAAP, or any
    other measure of financial performance calculated in accordance
    with GAAP. The following table presents a reconciliation of net
    (loss) income to Adjusted EBITDA:
Year Ended December 31,
2007
2008
2009
(in thousands)
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
Depreciation and asset impairment
4,854
9,847
9,231
Amortization of intangible assets
2,273
2,095
5,784
Interest expense, net
1,510
2,152
4,528
Income tax expense (benefit)
—
703
(26,028
)
Stock-based compensation expense
490
1,476
2,805
Acquisition-related expense
—
—
844
Adjusted EBITDA
$
5,984
$
13,064
$
25,593
1
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For further discussion regarding Adjusted EBITDA, see footnote 5
    to the table in "Selected Consolidated Financial Data."
Industry
    Overview
The rental housing market is large and characterized by
    challenging and location-specific operating requirements,
    diverse industry participants, significant mobility among
    residents and a variety of property types, including
    single-family and a wide range of
multi-family
property types, including conventional, affordable, privatized
    military, student and senior housing. According to the
    U.S. Census Bureau American Housing Survey for the United
    States: 2007, there were 39.3 million rental housing units
    in the United States in 2007. Based on U.S. Census Bureau
    data and our own estimates, we believe that the overall size of
    the U.S. rental housing market, including rent, utilities
    and insurance, exceeds $300 billion annually. We estimate
    that the total addressable market for our current on demand
    software solutions is approximately $5.5 billion per year.
    This estimate assumes that each of the 39.3 million rental units
    in the United States has the potential to generate annually a
    range of approximately $100 in revenue per unit for
    single-family units to approximately $240 in revenue per unit
    for conventional multi-family units. We base this potential
    revenue assumption on our review of the purchasing patterns of
    our existing customers with respect to our on demand software
    solutions, the on demand software solutions currently utilized
    by our existing customers, the number of units our customers
    manage with these solutions and our current pricing for our on
    demand software solutions.
Rental property management spans both the resident lifecycle and
    the operations of a property. The resident lifecycle can be
    separated into four key stages: prospect, applicant, residency
    and post-residency. Each stage of the lifecycle has unique
    requirements, such as identifying and capturing quality
    prospects, processing applications, assessing applicants'
    credit risk, processing payments to and from residents and
    service providers and managing resident turnover. In addition to
    managing the resident lifecycle, property owners and managers
    must also manage the operations of their properties, including
    material and service provider procurement, insurance and risk
    mitigation, utility and energy management, information
    technology and telecommunications management, accounting,
    expense tracking and management, document management, security,
    staff hiring and training, staff performance measurement and
    management and marketing. A property owner's or
    manager's ability to effectively address these requirements
    can significantly impact their revenue and profitability.
A variety of software applications have been developed to
    automate many of these functions. However, these applications
    often require property owners and managers to implement a myriad
    of third-party
and/or
internally developed point solutions. These solutions can be
    expensive to implement and maintain and are often ineffective at
    helping property owners and managers increase rental revenue and
    reduce costs.
The
    RealPage Solution
We provide a platform of on demand software solutions that
    integrate and streamline rental property management business
    functions. Our solutions enable owners and managers of
    single-family and a wide variety of multi-family rental property
    types, including conventional, affordable, privatized military,
    student and senior housing, to manage their marketing, pricing,
    screening, leasing, accounting, purchasing and other property
    operations. These functions have traditionally been addressed by
    individual, disparate applications. Our solutions enable
    property owners and managers to increase revenues and reduce
    operating costs through higher occupancy, improved pricing
    methodologies, new sources of revenue from ancillary services,
    improved collections and more integrated and centralized
    business processes. Our solutions contribute to a more efficient
    property management process and an improved experience for all
    of the constituents involved in the rental housing ecosystem,
    including owners, managers, prospects, residents and service
    providers.
The benefits of our solutions for our customers include the
    following:
•
Increased revenues.
Our solutions help our
    customers improve sales and marketing effectiveness, optimize
    pricing and occupancy and improve collection of rental payments,
    utility expenses, late fees and other charges.
2
Table of Contents
•
Reduced operating costs.
Our solutions help
    our customers streamline and automate many ongoing property
    management functions, centralize certain property operations,
    control purchasing by on-site personnel and eliminate the need
    to own and support property management applications and
    associated hardware infrastructure.
•
Improved quality of service for residents and
    prospects.
Our solutions expedite the processing
    of a variety of recurring transactions and increase the
    frequency and quality of communication with residents and
    prospects, providing higher resident satisfaction and increased
    differentiation from competing properties that do not use our
    solutions.
•
Streamlined and simplified property management business
    processes.
Our solutions share data and automate
    the workflow of certain business processes, thereby eliminating
    redundant data entry and simplifying many recurring tasks.
•
Ability to integrate third-party products and
    services.
Our open architecture and application
    framework facilitate the integration of third-party applications
    and services into our solutions.
•
Increased visibility into property
    performance.
Our integrated platform and common
    data repository enable owners and managers to gain a
    comprehensive view of the operational and financial performance
    of each of their properties.
•
Simple implementation and support.
Our
    solutions include pre-configured extensions that meet the
    specific needs of a variety of property types and can be easily
    tailored by our customers to meet the specific needs of their
    properties or business processes.
•
Improved scalability.
Our application
    infrastructure is designed to evolve with our customers'
    needs.
The competitive strengths of our solutions are as follows:
•
Integrated on demand software platform based on a common data
    repository.
Our solutions are delivered through
    an integrated on demand software platform that provides a single
    point of access via the Internet to all of our products and a
    common repository of prospect, resident and property data.
•
Large and growing ecosystem of property owners, managers,
    prospects, residents and service providers.
Our
    solutions automate and streamline many of the recurring
    transactions and interactions among a large and expanding rental
    housing ecosystem of property owners and managers, prospects,
    residents and service providers.
•
Comprehensive platform of on demand software solutions for
    property management.
We provide what we believe
    to be the broadest range of on demand capabilities for managing
    the resident lifecycle and core operational processes for
    residential property management.
•
Deep rental housing industry expertise.
We
    design our solutions based on our extensive rental housing
    industry expertise, insight into industry trends and
    developments and best practices.
•
Open cloud computing architecture.
Our cloud
    computing architecture enables our solutions to interface with
    many of our customers' existing systems and allows our
    customers to outsource the management of third-party business
    applications.
Our
    Strategy
We intend to leverage the breadth of our solutions and industry
    presence to solidify our position as a leading provider of on
    demand software solutions to the rental housing industry. The
    key elements of our strategy to accomplish this objective are as
    follows:
•
acquire new customers;
•
increase the adoption of additional solutions within our
    existing customer base;
3
Table of Contents
•
add new solutions to our platform; and
•
pursue acquisitions of complementary businesses, products and
    technologies.
Risks
    Affecting Us
Our business is subject to a number of risks that you should
    understand before making an investment decision. These risks are
    discussed more fully in "Risk Factors" following this
    prospectus summary. Some of these risks are:
•
our quarterly operating results have fluctuated in the past and
    may fluctuate in the future, which could cause our stock price
    to decline;
•
we have a history of operating losses and may not maintain
    profitability in the future;
•
if we are unable to manage the growth of our diverse and complex
    operations, our financial performance may suffer;
•
our business depends substantially on customers renewing and
    expanding their subscriptions for our solutions and any increase
    in customer cancellations or decline in customer renewals and
    expansions would harm our future operating results;
•
we face intense competitive pressures and our failure to compete
    successfully could harm our operating results;
•
we may not be able to continue to add new customers, which could
    adversely affect our operating results; and
•
if we are not able to integrate past or future acquisitions
    successfully, our operating results and prospects could be
    harmed.
Company
    Information
We were incorporated in the State of Delaware in December 2003
    through a merger with our predecessor entity, RealPage, Inc., a
    Texas corporation, which was originally incorporated in November
    1998 as Seren Capital Acquisition Corp. Our principal executive
    offices are located at 4000 International Parkway, Carrollton,
    Texas 75007, and our telephone number is
(972) 820-3000.
Our website address is www.realpage.com. The information on, or
    that can be accessed through, our website is not part of this
    prospectus.
"RealPage
®
",

    "OneSite
®
",

    "OneSite Leasing and
    Rents
tm
",

    "OneSite
    Facilities
tm
",

    "OneSite
    Purchasing
tm
",

    "OneSite
    Accounting
tm
",

    "OneSite
    Budgeting
tm
",

    "Propertyware
®
",

    "HUDManager
®
",

    "RentRoll
®
",

    "i-CAM
tm
",

    "Tenant
    Pro
®
",

    "Spectra
tm
",

    "CrossFire
®
",

    "CrossFire Contact
    Center
tm
",

    "CrossFire Leasing
    Portal
tm
",

    "CrossFire Resident
    Portal
tm
",

    "CrossFire
    Studio
tm
",

    "M/PF
    Research
®
",

    "YieldStar
®
",

    "YieldStar Price
    Optimizer
tm
",

    "LeasingDesk
®
",

    "LeasingDesk
    Screening
tm
",

    "LeasingDesk Insurance
    Services
tm
",

    "eRenterPlan
tm
",

    "Credit
    Optimizer
tm
",

    "Velocity
tm
",

    "OpsTechnology
tm
",

    "OpsMarket
tm
",

    "OpsAdvantage
tm
",

    "OpsBuyer
tm
",

    "OpsBid
tm
"

    and
    "Domin-8
®
"

    are our trademarks and registered trademarks appearing in this
    prospectus. All other trademarks and trade names appearing in
    this prospectus are the property of their respective owners.
4
Table of Contents
The
    Offering
Common stock offered by us
shares
Common stock offered by the selling stockholders
shares
Total common stock offered
shares
Common stock to be outstanding after this offering
shares
Use of proceeds
We intend to use the net proceeds from this offering to pay
    accumulated and unpaid dividends on our outstanding shares of
    Series A, Series A1 and Series B convertible
    preferred stock that have accrued at a rate of 8% per annum of
    the original issue price of each such share of preferred stock,
    compounded quarterly, which amounted to
    $       million as
    of                    ,
    2010, to repay approximately $18.2 million of our
    indebtedness outstanding as of December 31, 2009 and for
    general corporate purposes, including working capital. We also
    may use a portion of the net proceeds to acquire complementary
    businesses or technologies. We will not receive any proceeds
    from the sale of shares by the selling stockholders. See
    "Use of Proceeds."
Risk factors
You should read the "Risk Factors" section of this
    prospectus for a discussion of factors that you should consider
    carefully before deciding to invest in shares of our common
    stock.
Proposed NASDAQ Global Market symbol
"       "
The number of shares of common stock that will be outstanding
    after this offering is based on 111,009,108 shares of our
    common stock outstanding as of December 31, 2009 and
    excludes:
•
15,707,456 shares of common stock issuable upon the
    exercise of options outstanding as of December 31, 2009
    under our 1998 Stock Incentive Plan, with a weighted average
    exercise price of $2.16 per share;
•
150,000 shares of common stock issuable upon exercise of
    options outstanding as of December 31, 2009 issued to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.00 per share;
•
1,721,000 shares of common stock issuable upon exercise of
    options granted in the quarter ended March 31, 2010 under
    our 1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
•
120,000 shares of common stock issuable upon exercise of
    options granted in the quarter ended March 31, 2010 to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
•
shares
    of common stock reserved for future issuance under our 2010
    Equity Incentive Plan, which will become effective in connection
    with this offering (including 732,285 shares of common
    stock reserved, as of December 31, 2009, for future
    issuance under our 1998 Stock Incentive Plan, which shares will
    be added to the shares reserved under our 2010 Equity Incentive
    Plan, upon its effectiveness); and
•
25,000 shares of common stock issuable upon the exercise of
    warrants outstanding as of December 31, 2009, with a
    weighted average exercise price of $1.00 per share.
5
Table of Contents
Unless otherwise indicated, the information in this prospectus
    assumes:
•
a      -for-      
    reverse stock split of our common stock and convertible
    preferred stock to be effected prior to the completion of this
    offering;
•
the conversion of all outstanding shares of our convertible
    preferred stock into 58,087,500 shares of common stock
    effective upon the completion of this offering;
•
no exercise by the underwriters of their right to purchase up
    to          shares
    of common stock to cover over-allotments; and
•
the filing of our amended and restated certificate of
    incorporation and the effectiveness of our amended and restated
    bylaws, which will occur immediately upon the completion of this
    offering.
6
Table of Contents
Summary
    Consolidated Financial Data
The following tables present summary consolidated financial data
    for the years ended December 31, 2007, 2008 and 2009 and
    summary consolidated balance sheet data as of December 31,
    2007, 2008 and 2009. We have derived the consolidated statement
    of operations data for the years ended December 31, 2007,
    2008, and 2009 and the consolidated balance sheet data as of
    December 31, 2008 and 2009 from our audited consolidated
    financial statements, which appear elsewhere in this prospectus.
    We derived the consolidated balance sheet data as of
    December 31, 2007 from our unaudited consolidated financial
    statements that are not included in this prospectus. You should
    read this information in conjunction with our consolidated
    financial statements, the related notes to these financial
    statements and the information in "Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations" included elsewhere in this prospectus.
Year Ended December 31,
2007
2008
2009
(in thousands, except per share data)
Consolidated Statements of Operations Data:
Revenue:
On demand
$
62,592
$
95,192
$
128,377
On premise
11,560
7,582
3,860
Professional and other
9,429
9,794
8,665
Total revenue
83,581
112,568
140,902
Cost of revenue
35,703
46,058
58,513
Gross profit
47,878
66,510
82,389
Operating expense:
Product development
21,708
28,806
27,446
Sales and marketing
18,047
23,923
27,804
General and administrative
9,756
14,135
20,210
Total operating expense
49,511
66,864
75,460
Operating (loss) income
(1,633
)
(354
)
6,929
Interest expense, net
(1,510
)
(2,152
)
(4,528
)
Net (loss) income before taxes
(3,143
)
(2,506
)
2,401
Income tax expense (benefit)
—
703
(26,028
)
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
Net (loss) income attributable to common stockholders:
Basic
$
(9,143
)
$
(10,658
)
$
10,757
Diluted
$
(9,143
)
$
(10,658
)
$
10,757
Net (loss) income per share attributable to common stockholders:
Basic
$
(0.45
)
$
(0.38
)
$
0.22
Diluted
$
(0.45
)
$
(0.38
)
$
0.21
Weighted average shares used in computing net (loss) income per
    share attributable to common stockholders:
Basic
20,446
27,773
47,869
Diluted
20,446
27,773
51,025
Pro forma net income per share attributable to common
    stockholders
    (unaudited)
(1)
:
Basic
$
0.27
Diluted
$
0.26
Pro forma weighted average shares outstanding used in computing
    net income per share attributable to common stockholders
    (unaudited)
(2)
:
Basic
105,957
Diluted
109,113
7
Table of Contents
As of December 31,
2007
(unaudited)
2008
2009
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash
    equivalents
(3)
$
2,731
$
4,248
$
4,427
Working capital, excluding deferred revenue
9,224
12,126
12,929
Total assets
59,518
102,340
142,113
Current and long-term
    debt
(4)
23,809
48,943
53,990
Total liabilities
87,954
129,622
136,757
Preferred stock
78,534
71,675
71,832
Total stockholders' deficit
(106,970
)
(98,957
)
(66,476
)
Other Financial Data:
Adjusted
    EBITDA
(5)
$
5,984
$
13,064
$
25,593
Operating cash flow
4,441
7,962
24,758
Capital expenditures
7,122
10,263
9,509
As of December 31,
2007
2008
2009
Selected Operating Data:
Number of on demand customers at period end
2,199
2,669
5,032
Number of on demand units at period end (in thousands)
2,800
3,833
4,551
Total number of employees at period end
654
922
1,141
(1)
Pro forma net income per share represents net income divided by
    the pro forma weighted average shares outstanding as though the
    conversion of our redeemable convertible preferred stock into
    common stock occurred on the original issuance dates.
(2)
Pro forma weighted average shares outstanding reflects the
    conversion of our redeemable convertible preferred stock (using
    the if-converted method) into common stock as though the
    conversion had occurred on the original dates of issuance.
(3)
Excludes restricted cash.
(4)
Includes capital lease obligations.
(5)
We define Adjusted EBITDA as net (loss) income plus depreciation
    and asset impairment, amortization of intangible assets,
    interest expense, net, income tax expense (benefit), stock-based
    compensation expense and acquisition-related expense.
We believe that the use of Adjusted EBITDA is useful to
    investors and other users of our financial statements in
    evaluating our operating performance because it provides them
    with an additional tool to compare business performance across
    companies and across periods. We believe that:
•
Adjusted EBITDA provides investors and other users of our
    financial information consistency and comparability with our
    past financial performance, facilitates period-to-period
    comparisons of operations and facilitates comparisons with our
    peer companies, many of which use similar non-GAAP financial
    measures to supplement their GAAP results; and
•
it is useful to exclude certain non-cash charges, such as
    depreciation and asset impairment, amortization of intangible
    assets and stock-based compensation and non-core operational
    charges, such as acquisition-related expense, from Adjusted
    EBITDA because the amount of such expenses in any specific
    period may not directly correlate to the underlying performance
    of our business operations and these expenses can vary
    significantly between periods as a result of new acquisitions,
    full amortization of previously acquired tangible and intangible
    assets or the timing of new stock-based awards, as the case may
    be.
We use Adjusted EBITDA in conjunction with traditional GAAP
    operating performance measures as part of our overall assessment
    of our performance, for planning purposes, including the
    preparation of our
8
Table of Contents
annual operating budget, to evaluate the effectiveness of our
    business strategies and to communicate with our board of
    directors concerning our financial performance.
We do not place undue reliance on Adjusted EBITDA as our only
    measure of operating performance. Adjusted EBITDA should not be
    considered as a substitute for other measures of liquidity or
    financial performance reported in accordance with GAAP. There
    are limitations to using non-GAAP financial measures, including
    that other companies may calculate these measures differently
    than we do, that they do not reflect our capital expenditures or
    future requirements for capital expenditures and that they do
    not reflect changes in, or cash requirements for, our working
    capital. We compensate for the inherent limitations associated
    with using Adjusted EBITDA measures through disclosure of these
    limitations, presentation of our financial statements in
    accordance with GAAP and reconciliation of Adjusted EBITDA to
    the most directly comparable GAAP measure, net (loss) income.
The following table presents a reconciliation of net (loss)
    income to Adjusted EBITDA:
Year Ended December 31,
2007
2008
2009
(in thousands)
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
Depreciation and asset impairment
4,854
9,847
9,231
Amortization of intangible assets
2,273
2,095
5,784
Interest expense, net
1,510
2,152
4,528
Income tax expense (benefit)
—
703
(26,028
)
Stock-based compensation expense
490
1,476
2,805
Acquisition-related expense
—
—
844
Adjusted EBITDA
$
5,984
$
13,064
$
25,593
The following table presents stock-based compensation included
    in each expense category:
Year Ended December 31,
2007
2008
2009
(in thousands)
Cost of revenue
$
48
$
104
$
367
Product development
251
727
1,175
Sales and marketing
110
277
498
General and administrative
81
368
765
Total stock-based compensation expense
$
490
$
1,476
$
2,805
9
Table of Contents
RISK
    FACTORS
An investment in our common stock involves a high degree of
    risk. You should carefully consider the risks and uncertainties
    described below, together with the financial and other
    information contained in this prospectus, including our
    consolidated financial statements and related notes, before
    deciding whether to purchase shares of our common stock. If any
    of the following risks actually occurs, our business, financial
    condition, results of operations and future prospects could be
    materially and adversely affected. In that event, the market
    price of our common stock could decline and you could lose part
    or all of your investment.
Risks
    Related to Our Business
Our
    quarterly operating results have fluctuated in the past and may
    fluctuate in the future, which could cause our stock price to
    decline.
Our quarterly operating results may fluctuate as a result of a
    variety of factors, many of which are outside of our control.
    Fluctuations in our quarterly operating results may be due to a
    number of factors, including the risks and uncertainties
    discussed elsewhere in this prospectus. Some of the important
    factors that could cause our revenues and operating results to
    fluctuate from quarter to quarter include:
•
the extent to which on demand software solutions maintain
    current and achieve broader market acceptance;
•
our ability to timely introduce enhancements to our existing
    solutions and new solutions;
•
our ability to increase sales to existing customers and attract
    new customers;
•
changes in our pricing policies or those of our competitors;
•
the variable nature of our sales and implementation cycles;
•
general economic, industry and market conditions in the rental
    housing industry that impact the financial condition of our
    current and potential customers;
•
the amount and timing of our investment in research and
    development activities;
•
technical difficulties, service interruptions or security
    breaches;
•
our ability to hire and retain qualified key personnel,
    including the rate of expansion of our sales force;
•
changes in the legal, regulatory or compliance environment
    related to the rental housing industry, fair credit reporting,
    payment processing, privacy, utility billing, the Internet and
e-commerce;
•
the amount and timing of operating expenses and capital
    expenditures related to the expansion of our operations and
    infrastructure;
•
the timing of revenue and expenses related to recent and
    potential acquisitions or dispositions of businesses or
    technologies;
•
our ability to integrate acquisitions in a cost-effective and
    timely manner;
•
litigation and settlement costs, including unforeseen
    costs; and
•
new accounting pronouncements and changes in accounting
    standards or practices, particularly any affecting the
    recognition of subscription revenue or accounting for mergers
    and acquisitions.
Fluctuations in our quarterly operating results may lead
    analysts to change their long-term model for valuing our common
    stock, cause us to face short-term liquidity issues, impact our
    ability to retain or attract key personnel or cause other
    unanticipated issues, all of which could cause our stock price
    to decline. As a result of the potential variations in our
    quarterly revenue and operating results, we believe that
    quarter-to-quarter comparisons of our revenues and operating
    results may not be meaningful and the results of any one quarter
    should not be relied upon as an indication of future performance.
10
Table of Contents
We
    have a history of operating losses and may not maintain
    profitability in the future.
Prior to the fiscal quarter ended March 31, 2009, we had
    not been profitable on a quarterly or annual basis. We
    experienced net losses of $3.1 million and
    $3.2 million in 2007 and 2008, respectively. As of
    December 31, 2009, our accumulated deficit was
    $89.8 million. While we have experienced significant growth
    over recent quarters and our net income was $28.4 million
    in 2009, we may not be able to sustain or increase our growth or
    profitability in the future. Net income for 2009 included a
    discrete tax benefit of approximately $26.0 million as a
    result of a reduction of our net deferred tax assets valuation
    allowance. We expect to make significant future expenditures
    related to the development and expansion of our business. In
    addition, following the completion of this offering, we expect
    that our general and administrative expenses will increase due
    to the additional operational and reporting costs associated
    with being a public company. As a result of these increased
    expenditures and expenses, we will need to generate and sustain
    increased revenue to achieve future profitability expectations.
    We may incur significant losses in the future for a number of
    reasons, including the other risks and uncertainties described
    in this prospectus. Additionally, we may encounter unforeseen
    operating expenses, difficulties, complications, delays and
    other unknown factors that may result in losses in future
    periods. If these losses exceed our expectations or our growth
    expectations are not met in future periods, our financial
    performance will be affected adversely.
If we
    are unable to manage the growth of our diverse and complex
    operations, our financial performance may suffer.
The growth in the size, complexity and diversity of our business
    and the expansion of our product lines and customer base has
    placed, and our anticipated growth may continue to place, a
    significant strain on our managerial, administrative,
    operational, financial and other resources. We have experienced
    rapid growth over the past three years. We increased our number
    of employees from 532 as of December 31, 2006 to 1,141 as
    of December 31, 2009 and our number of on demand customers
    from 1,469 as of December 31, 2006 to 5,032 as of
    December 31, 2009. We increased the number of product
    centers that we offer from 20 as of December 31, 2006 to 41
    as of December 31, 2009. In addition, in the past, we have
    grown and expect to continue to grow through acquisitions. For
    example, we recently acquired the assets of Domin-8 Enterprise
    Solutions, Inc., which was a holding company for several on
    premise property management systems. Our ability to effectively
    manage our anticipated future growth will depend on, among other
    things, the following:
•
successfully supporting and maintaining a broad range of
    solutions;
•
maintaining continuity in our senior management and key
    personnel;
•
attracting, retaining, training and motivating our employees,
    particularly technical, customer service and sales personnel;
•
enhancing our financial and accounting systems and controls;
•
enhancing our information technology infrastructure; and
•
managing expanded operations in geographically dispersed
    locations.
If we do not manage the size, complexity and diverse nature of
    our business effectively, we could experience delayed software
    releases and longer response times for assisting our customers
    with implementation of our solutions and could lack adequate
    resources to support our customers on an ongoing basis, any of
    which could adversely affect our reputation in the market and
    our ability to generate revenue from new or existing customers.
The
    nature of our platform is complex and highly integrated and if
    we fail to successfully manage releases or integrate new
    solutions, it could harm our revenues, operating income and
    reputation.
We manage a complex platform of solutions that consists of our
    property management systems and integrated software-enabled
    value-added services. Many of our solutions include a large
    number of product centers that are highly integrated and require
    interoperability with each other and our other solutions, as
    well as products and services of third-party service providers.
    Additionally, we typically deploy new releases of the
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software underlying our on demand software solutions on a
    monthly or quarterly schedule depending on the solution. Due to
    this complexity and the condensed development cycles under which
    we operate, we may experience errors in our software or
    unexpected performance issues from time to time. For example,
    our solutions may face interoperability difficulties with
    software operating systems or programs being used by our
    customers, or new releases, upgrades, fixes or the integration
    of acquired technologies may have unanticipated consequences on
    the operation and performance of our other solutions. If we
    encounter integration challenges or discover errors in our
    solutions late in our development cycle, it may cause us to
    delay our launch dates. Any major integration or
    interoperability issues or launch delays could have a material
    adverse effect on our revenues, operating income and reputation.
Our
    business depends substantially on customers renewing and
    expanding their subscriptions for our solutions and any increase
    in customer cancellations or decline in customer renewals or
    expansions would harm our future operating
    results.
We generally license our solutions pursuant to customer
    agreements with a term of one year. Our customers have no
    obligation to renew these agreements after their term expires,
    or to renew these agreements at the same or higher annual
    contract value. In addition, under specific circumstances, our
    customers have the right to cancel their customer agreements
    before they expire, for example, in the event of an uncured
    breach by us, or in some circumstances, by paying a cancellation
    fee. In addition, customers often purchase a higher level of
    professional services in the initial term than they do in
    renewal terms to ensure successful activation. As a result, our
    ability to grow is dependent in part on customers purchasing
    additional solutions or professional services after the initial
    term of their customer agreement. Though we maintain and analyze
    historical data with respect to rates of customer renewals,
    upgrades and expansions, those rates may not accurately predict
    future trends in customer renewals. Our customers' renewal
    rates may decline or fluctuate for a number of reasons,
    including, but not limited to, their satisfaction or
    dissatisfaction with our solutions, our pricing, our
    competitors' pricing, reductions in our customers'
    spending levels or reductions in the number of units managed by
    our customers. If our customers cancel their agreements with us
    during their term, do not renew their agreements, renew on less
    favorable terms or do not purchase additional solutions or
    professional services in renewal periods, our revenue may grow
    more slowly than expected or decline and our profitability may
    be harmed.
Additionally, we have experienced, and expect to continue to
    experience, some level of customer turnover as properties are
    sold and the new owners and managers of properties previously
    owned or managed by our customers do not continue to use our
    solutions. We cannot predict the amount of customer turnover we
    will experience in the future. However, we have experienced
    slightly higher rates of customer turnover with our recently
    acquired Propertyware property management system, primarily
    because it serves smaller properties than our OneSite property
    management system, and we may experience higher levels of
    customer turnover to the extent Propertyware grows as a
    percentage of our revenues. If we experience increased customer
    turnover, our financial performance and operating results could
    be adversely affected.
We have also experienced, and expect to continue to experience,
    some number of consolidations of our customers with other
    parties. If one of our customers consolidates with a party who
    is not a customer, our customer may decide not to continue to
    use our solutions. In addition, if one of our customers is
    consolidated with another customer, the acquiring customer may
    have negotiated lower prices for our solutions or may use fewer
    of our solutions than the acquired customer. In each case, the
    consolidated entity may attempt to negotiate lower prices for
    using our solutions as a result of their increased size. These
    consolidations may cause us to lose customers or require us to
    reduce prices as a result of enhanced customer leverage, which
    could cause our financial performance and operating results to
    be adversely affected.
Because
    we recognize subscription revenue over the term of the
    applicable customer agreement, a decline in subscription
    renewals or new service agreements may not be reflected
    immediately in our operating results.
We generally recognize revenue from customers ratably over the
    terms of their customer agreements, which are typically one
    year. As a result, much of the revenue we report in each quarter
    is deferred revenue from customer agreements entered into during
    previous quarters. Consequently, a decline in new or renewed
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customer agreements in any one quarter will not be fully
    reflected in our revenue or our results of operations until
    future periods. Accordingly, this revenue recognition model also
    makes it difficult for us to rapidly increase our revenue
    through additional sales in any period, as revenue from new
    customers must be recognized over the applicable subscription
    term.
We may
    not be able to continue to add new customers and retain and
    increase sales to our existing customers, which could adversely
    affect our operating results.
Our revenue growth is dependent on our ability to continually
    attract new customers while retaining and expanding our service
    offerings to existing customers. Growth in the demand for our
    solutions may be inhibited and we may be unable to sustain
    growth in our customer base for a number of reasons, including,
    but not limited to:
•
our inability to market our solutions in a cost-effective manner
    to new customers or in new vertical or geographic markets;
•
our inability to expand our sales to existing customers;
•
our inability to build and promote our brand; and
•
perceived security, reliability, quality or compatibility
    problems with our solutions.
A substantial amount of our past revenue growth was derived from
    purchases of upgrades and additional solutions by existing
    customers. Our costs associated with increasing revenue from
    existing customers are generally lower than costs associated
    with generating revenue from new customers. Therefore, a
    reduction in the rate of revenue increase from our existing
    customers, even if offset by an increase in revenue from new
    customers, could reduce our profitability and have a material
    adverse effect on our operating results.
If we
    are not able to integrate past or future acquisitions
    successfully, our operating results and prospects could be
    harmed.
We have acquired new technology and domain expertise through
    multiple acquisitions, including our most recent acquisition of
    assets from Domin-8 Enterprise Solutions, Inc. in February 2010.
    We expect to continue making acquisitions. The success of our
    future acquisition strategy will depend on our ability to
    identify, negotiate, complete and integrate acquisitions.
    Acquisitions are inherently risky, and any acquisitions we
    complete may not be successful. Any acquisitions we pursue would
    involve numerous risks, including the following:
•
difficulties in integrating and managing the operations and
    technologies of the companies we acquire;
•
diversion of our management's attention from normal daily
    operations of our business;
•
our inability to maintain the key employees, the key business
    relationships and the reputations of the businesses we acquire;
•
insufficient revenue to offset our increased expenses associated
    with acquisitions;
•
our responsibility for the liabilities of the businesses we
    acquire, including, without limitation, liabilities arising out
    of their failure to maintain effective data security and privacy
    controls prior to the acquisition;
•
difficulties in complying with new regulatory standards to which
    we were not previously subject;
•
delays in our ability to implement internal standards, controls,
    procedures and policies in the businesses we acquire; and
•
adverse effects of acquisition activity on the key performance
    indicators we use to monitor our performance as a business.
Our current acquisition strategy includes the acquisition of
    companies that offer property management systems that may not
    interoperate with our software-enabled
value-added
services. In order to integrate and
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fully realize the benefits of such acquisitions, we expect to
    build application interfaces that enable such customers to use a
    wide range of our solutions while they continue to use their
    legacy management systems. In addition, over time we expect to
    migrate the acquired company's customers to our on demand
    property management systems to retain them as customers and to
    be in a position to offer them our solutions on a cost-effective
    basis. These efforts may be unsuccessful or entail costs that
    result in losses or reduced profitability.
We may be unable to secure the equity or debt funding necessary
    to finance future acquisitions on terms that are acceptable to
    us, or at all. If we finance acquisitions by issuing equity or
    convertible debt securities, our existing stockholders will
    likely experience ownership dilution, and if we finance future
    acquisitions with debt funding, we will incur interest expense
    and may have to comply with additional financing covenants or
    secure that debt obligation with our assets.
If we
    are unable to successfully develop or acquire and sell
    enhancements and new solutions, our revenue growth will be
    harmed and we may not be able to meet profitability
    expectations.
The industry in which we operate is characterized by rapidly
    changing customer requirements, technological developments and
    evolving industry standards. Our ability to attract new
    customers and increase revenue from existing customers will
    depend in large part on our ability to successfully develop,
    bring to market and sell enhancements to our existing solutions
    and new solutions that effectively respond to the rapid changes
    in our industry. Any enhancements or new solutions that we
    develop or acquire may not be introduced to the market in a
    timely or cost-effective manner and may not achieve the broad
    market acceptance necessary to generate the revenue required to
    offset the operating expenses and capital expenditures related
    to development or acquisition. If we are unable to timely
    develop or acquire and sell enhancements and new solutions that
    keep pace with the rapid changes in our industry, our revenue
    will not grow as expected and we may not be able to maintain or
    meet profitability expectations.
We
    derive a substantial portion of our revenue from a limited
    number of our solutions and failure to maintain demand for these
    solutions or diversify our revenue base through increasing
    demand for our other solutions could negatively affect our
    operating results.
Historically, a majority of our revenue was derived from sales
    of our OneSite property management system and our LeasingDesk
    software-enabled
value-added
service. If we are unable to develop enhancements to these
    solutions to maintain demand for these solutions or to diversify
    our revenue base by increasing demand for our other solutions,
    our operating results could be negatively impacted.
We use
    a small number of data centers to deliver our solutions. Any
    disruption of service at our facilities could interrupt or delay
    our customers' access to our solutions, which could harm
    our operating results.
The ability of our customers to access our service is critical
    to our business. We currently serve a majority of our customers
    from a primary data center located in Carrollton, Texas. We also
    maintain a secondary data center in downtown Dallas, Texas,
    approximately 20 miles from our primary data center.
    Services of our most recent acquisitions are provided from data
    centers located in Wisconsin, Ohio, Texas and Winnipeg, Canada.
    It is our intent to migrate all data centers to our primary and
    secondary data centers in Carrollton and Dallas. Any event
    resulting in extended interruption or delay in our
    customers' access to our services or their data could harm
    our operating results. There can be no certainty that the
    measures we have taken to eliminate single points of failure in
    the primary and secondary data centers will be effective to
    prevent or minimize interruptions to our operations. Our
    facilities are vulnerable to interruption or damage from a
    number of sources, many of which are beyond our control,
    including, without limitation:
•
extended power loss;
•
telecommunications failures from multiple telecommunication
    providers;
•
natural disaster or an act of terrorism;
•
software and hardware errors, or failures in our own systems or
    in other systems;
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•
network environment disruptions such as computer viruses,
    hacking and similar problems in our own systems and in other
    systems;
•
theft and vandalism of equipment; and
•
actions or events caused by or related to third parties.
The occurrence of an extended interruption of services at one or
    more of our data centers could result in lengthy interruptions
    in our services. Since January 1, 2007, we have experienced
    two extended service interruptions lasting more than eight hours
    caused by equipment and hardware failures. Our service level
    agreements require us to refund a prorated portion of the access
    fee if we fail to satisfy our service level commitments related
    to availability. Refunds for breach of this service level
    commitment have resulted in immaterial payments to customers in
    the past. An extended service outage could result in refunds to
    our customers and harm our customer relationships.
We attempt to mitigate these risks through various business
    continuity efforts, including redundant infrastructure, 24 x 7 x
    365 system activity monitoring, backup and recovery procedures,
    use of a secure off-site storage facility for backup media,
    separate test systems and change management and system security
    measures, but our precautions may not protect against all
    potential problems. Our secondary data center is equipped with
    physical space, power, storage and networking infrastructure and
    Internet connectivity to support the solutions we provide in the
    event of the interruption of services at our primary data
    center. Even with this secondary data center, however, our
    operations would be interrupted during the transition process
    should our primary data center experience a failure. Moreover,
    both our primary and secondary data centers are located in the
    greater metropolitan Dallas area. As a result, any regional
    disaster could affect both data centers and result in a material
    disruption of our services.
For customers who specifically pay for accelerated disaster
    recovery services, we replicate their data from our primary data
    center to our secondary data center with the necessary stand-by
    servers and disk storage available to provide services within
    two hours of a disaster. This process is currently audited by
    some of our customers who pay for this service on an annual
    basis. For customers who do not pay for such services, our
    current service level agreements with our customers require that
    we provide disaster recovery within 72 hours.
Disruptions at our data centers could cause disruptions in our
    services and data loss or corruption. This could damage our
    reputation, cause us to issue credits to customers, subject us
    to potential liability or costs related to defending against
    claims or cause customers to terminate or elect not to renew
    their agreements, any of which could negatively impact our
    revenues.
We
    provide service level commitments to our customers, and our
    failure to meet the stated service levels could significantly
    harm our revenue and our reputation.
Our customer agreements provide that we maintain certain service
    level commitments to our customers relating primarily to product
    functionality, network uptime, critical infrastructure
    availability and hardware replacement. For example, our service
    level agreements generally require that our solutions are
    available 98% of the time during coverage hours (normally
    6:00 a.m. though 10:00 p.m. Central time daily)
    365 days per year. If we are unable to meet the stated
    service level commitments, we may be contractually obligated to
    provide customers with refunds or credits. Additionally, if we
    fail to meet our service level commitments a specified number of
    times within a given time frame or for a specified duration, our
    customers may terminate their agreement with us or extend the
    term of their agreement at no additional fee. As a result, a
    failure to deliver services for a relatively short duration
    could cause us to issue credits or refunds to a large number of
    affected customers or result in the loss of customers. In
    addition, we cannot assure you that our customers will accept
    these credits, refunds, termination or extension rights in lieu
    of other legal remedies that may be available to them. Our
    failure to meet our commitments could also result in substantial
    customer dissatisfaction or loss. Because of the loss of future
    revenues through the issuance of credits or the loss of
    customers or other potential liabilities, our revenue could be
    significantly impacted if we cannot meet our service level
    commitments to our customers.
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We
    face intense competitive pressures and our failure to compete
    successfully could harm our operating results.
The market for our solutions is intensely competitive,
    fragmented and rapidly changing with relatively low barriers to
    entry. With the introduction of new technologies and market
    entrants, we expect competition to intensify in the future.
    Increased competition generally could result in pricing
    pressures, reduced sales and reduced margins. Often we compete
    to sell our solutions against existing systems that our
    potential customers have already made significant expenditures
    to install.
We face competition primarily from point solution providers,
    including traditional software vendors, application service
    providers, or ASPs, and other software as a service, or SaaS,
    providers. Our competitors vary depending on our product and
    service. Our principal competitors in the multi-family
    enterprise resource planning, or ERP, market are AMSI Property
    Management (owned by Infor Global Solutions, Inc.), MRI Software
    LLC and Yardi Systems, Inc. These competitors offer both
    software and ASP delivery platforms. In the last 12 months
    Yardi Systems, Inc. has expanded into other competitive areas
    through smaller acquisitions and internally developed systems.
    In the single-family market, our ERP systems compete primarily
    with AppFolio, Inc.
We offer a number of software-enabled value-added services that
    compete with a disparate and large group of competitors. In the
    applicant screening market, our principal competitors are
    ChoicePoint Inc. (a subsidiary of Reed Elsevier Group plc),
    First Advantage Corporation (a subsidiary of The First American
    Corporation), TransUnion Rental Screening Solutions, Inc. (a
    subsidiary of TransUnion LLC) and Yardi Systems, Inc.
    (following its recent acquisition of RentGrow Inc., an applicant
    screening provider). In the insurance market, our principal
    competitors are Assurant, Inc. and a number of national
    insurance underwriters (including GEICO Corporation) that market
    renters insurance. There are many smaller screening and
    insurance providers in the risk mitigation area that we
    encounter less frequently, but they nevertheless present a
    competitive presence in the market.
In the customer relationship management, or CRM, market, we
    compete with providers of contact center and call tracking
    services, including Call Source Inc., Level One, Inc.,
    Yardi Systems, Inc. (which recently announced its intention to
    build a call center) and numerous regional and local call
    centers. In addition, we compete with lead tracking solution
    providers, including Call Source Inc., eReal Estate Integration,
    Inc., Lead Tracking Solutions (a division of O.C. Concepts,
    Inc.) and Who's Calling, Inc. In addition, we compete with
    content syndications and reservations systems offered by eReal
    Estate Integration, Inc. and Realty DataTrust Corporation.
    Finally, we compete with companies providing web portal
    services, including Apartments24-7.com, Inc., Ellipse
    Communications, Inc., Property Solutions International, Inc.,
    Spherexx.com and Yardi Systems, Inc. Certain Internet listing
    services also offer websites for their customers, usually as a
    free value add to their listing service.
In the utility billing market, we compete at a national level
    with American Utility Management, Inc., Conservice, LLC, ista
    North America, Inc., NWP Services Corporation and Yardi Systems,
    Inc. (following its recent acquisition of Energy Billing
    Systems, Inc.). Many other smaller utility billing companies
    compete for smaller rental properties or in regional areas.
In the revenue management market, we compete with PROS Holdings,
    Inc., The Rainmaker Group, Inc. and Yardi Systems, Inc.
In the payment processing market, we compete with Chase
    Paymentech Solutions, LLC (a subsidiary of JPMorgan
    Chase & Co.), First Data Corporation, Fiserv, Inc.,
    MoneyGram International, Inc., NWP Services Corporation,
    Property Solutions International, Inc., RentPayment.com (a
    subsidiary of Yapstone, Inc.), Yardi Systems, Inc. and a number
    of national banking institutions.
In addition, many of our existing or potential customers have
    developed or may develop their own solutions that may be
    competitive with our solutions. We also may face competition for
    potential acquisition targets from our competitors who are
    seeking to expand their offerings.
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With respect to all of our competitors, we compete based on a
    number of factors, including total cost of ownership, ease of
    implementation, product functionality and scope, performance,
    security, scalability and reliability of service, brand and
    reputation, sales and marketing capabilities and financial
    resources. Some of our existing competitors and new market
    entrants may enjoy substantial competitive advantages, such as
    greater name recognition, longer operating histories, a larger
    installed customer base and larger marketing budgets, as well as
    greater financial, technical and other resources. In addition,
    any number of our existing competitors or new market entrants
    could combine or consolidate to become a more formidable
    competitor with greater resources. As a result of such
    competitive advantages, our existing and future competitors may
    be able to:
•
develop superior products or services, gain greater market
    acceptance and expand their offerings more efficiently or more
    rapidly;
•
adapt to new or emerging technologies and changes in customer
    requirements more quickly;
•
take advantage of acquisition and other opportunities more
    readily;
•
adopt more aggressive pricing policies and devote greater
    resources to the promotion of their brand and marketing and
    sales of their products and services; and
•
devote greater resources to the research and development of
    their products and services.
If we are not able to compete effectively, our operating results
    will be harmed.
We integrate our software-enabled
value-added
services with competitive ERP applications for some of our
    customers. We also provide services to assist in the
    implementation, training, support and hosting with respect to
    the integration of some of our competitors' applications
    with our solutions. We sometimes rely on the cooperation of our
    competitors to implement solutions for our customers. However,
    frequently our reliance on the cooperation of our competitors
    can result in delays in integration. There is no assurance that
    our competitors, even if contractually obligated to do so, will
    continue to cooperate with us or will not prospectively alter
    their obligations to do so. We also occasionally develop
    interfaces between our software-enabled
value-added
services and competitor ERP systems without their cooperation or
    consent. There is no assurance that our competitors will not
    alter their applications in ways that inhibit integration or
    assert that their intellectual property rights restrict our
    ability to integrate our solutions with their applications. If
    our competitors do not continue to cooperate with us or if they
    alter their applications in ways that inhibit or restrict the
    integration of our solutions and we are not able to find
    alternative ways to integrate our solutions with our
    competitors' applications, our business will be harmed.
Variability
    in our sales and activation cycles could result in fluctuations
    in our quarterly results of operations and cause our stock price
    to decline.
The sales and activation cycles for our solutions, from initial
    contact with a potential customer to contract execution and
    activation, vary widely by customer and solution. We do not
    recognize revenue until the solution is activated. While most of
    our activations follow a set of standard procedures, a
    customer's priorities may delay activation and our ability
    to recognize revenue, which could result in fluctuations in our
    quarterly operating results.
Many
    of our customers are price sensitive, and if market dynamics
    require us to change our pricing model or reduce prices, our
    operating results will be harmed.
Many of our existing and potential customers are price
    sensitive, and recent adverse global economic conditions have
    contributed to increased price sensitivity in the multi-family
    housing market and the other markets that we serve. As market
    dynamics change, or as new and existing competitors introduce
    more competitive pricing or pricing models, we may be unable to
    renew our agreements with existing customers or customers of the
    businesses we acquire or attract new customers at the same price
    or based on the same pricing model as previously used. As a
    result, it is possible that we may be required to change our
    pricing model, offer price incentives or reduce our prices,
    which could harm our revenue, profitability and operating
    results.
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If we
    do not effectively expand and train our sales force, we may be
    unable to add new customers or increase sales to our existing
    customers and our business will be harmed.
We continue to be substantially dependent on our sales force to
    obtain new customers and to sell additional solutions to our
    existing customers. We believe that there is significant
    competition for sales personnel with the skills and technical
    knowledge that we require. Our ability to achieve significant
    revenue growth will depend, in large part, on our success in
    recruiting, training and retaining sufficient numbers of sales
    personnel to support our growth. New hires require significant
    training and, in most cases, take significant time before they
    achieve full productivity. Our recent hires and planned hires
    may not become as productive as we expect, and we may be unable
    to hire or retain sufficient numbers of qualified individuals in
    the markets where we do business or plan to do business. If we
    are unable to hire and train sufficient numbers of effective
    sales personnel, or the sales personnel are not successful in
    obtaining new customers or increasing sales to our existing
    customer base, our business will be harmed.
Material
    defects or errors in the software we use to deliver our
    solutions could harm our reputation, result in significant costs
    to us and impair our ability to sell our
    solutions.
The software applications underlying our solutions are
    inherently complex and may contain material defects or errors,
    particularly when first introduced or when new versions or
    enhancements are released. We have from time to time found
    defects in the software applications underlying our solutions
    and new errors in our existing solutions may be detected in the
    future. Any errors or defects that cause performance problems or
    service interruptions could result in:
•
a reduction in new sales or subscription renewal rates;
•
unexpected sales credits or refunds to our customers, loss of
    customers and other potential liabilities;
•
delays in customer payments, increasing our collection reserve
    and collection cycle;
•
diversion of development resources and associated costs;
•
harm to our reputation and brand; and
•
unanticipated litigation costs.
Additionally, the costs incurred in correcting defects or errors
    could be substantial and could adversely affect our operating
    results.
Failure
    to effectively manage the development of our solutions and data
    processing efforts outside the United States could harm our
    business.
Our success depends, in part, on our ability to process high
    volumes of customer data and enhance existing solutions and
    develop new solutions rapidly and cost effectively. We currently
    maintain an office in Hyderabad, India where we employ
    development and data processing personnel. We believe that
    performing these activities in Hyderabad increases the
    efficiency and decreases the costs of our development and data
    processing efforts. Managing and staffing international
    operations requires management's attention and financial
    resources. The level of cost-savings achieved by our
    international operations may not exceed the amount of investment
    and additional resources required to manage and operate these
    international operations. Additionally, if we experience
    problems with our workforce or facilities in Hyderabad, our
    business could be harmed due to delays in product release
    schedules or data processing services.
We
    rely on third-party technologies and services that may be
    difficult to replace or that could cause errors, failures or
    disruptions of our service, any of which could harm our
    business.
We rely on a number of third-party providers, including, but not
    limited to, computer hardware and software vendors and database
    providers, to deliver our solutions. We currently utilize
    equipment, software and services from Avaya Inc., Cisco Systems,
    Inc., Dell Inc., EMC Corporation, Microsoft Corporation, Oracle
    Corporation and salesforce.com, inc., as well as many other
    smaller providers. Our OneSite Accounting
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service relies on a SaaS-based accounting system developed and
    maintained by a third-party service provider. We host this
    application in our data centers and provide supplemental
    development resources to extend this accounting system to meet
    the unique requirements of the rental housing industry. Our
    shared cloud portfolio reporting service will utilize software
    licensed from IBM. We expect to utilize additional service
    providers as we expand our platform. Although the third-party
    technologies and services that we require are generally
    commercially available from a number of providers, such
    technologies and services may not continue to be available on
    commercially reasonable terms, or at all. Any loss of the right
    to use any of these technologies or services could result in
    delays in the provisioning of our solutions until alternative
    technology is either developed by us, or, if available, is
    identified, obtained and integrated, and such delays could harm
    our business. It also may be time consuming and costly to enter
    into new relationships. Additionally, any errors or defects in
    the third-party technologies we utilize or delays or
    interruptions in the third-party services we rely on could
    result in errors, failures or disruptions of our services, which
    also could harm our business.
We
    depend upon third-party service providers for important payment
    processing functions. If these third-party service providers do
    not fulfill their contractual obligations or choose to
    discontinue their services, our business and operations could be
    disrupted and our operating results would be
    harmed.
We rely on several large payment processing organizations to
    enable us to provide payment processing services to our
    customers, including electronic funds transfers, or EFT, check
    services, bank card authorization, data capture, settlement and
    merchant accounting services and access to various reporting
    tools. These organizations include Paymentech, LLC, Jack
    Henry & Associates, Inc., JPMorgan Chase Bank, N.A.
    and Wells Fargo, N.A. We also rely on third-party hardware
    manufacturers to manufacture the check scanning hardware our
    customers utilize to process transactions. Some of these
    organizations and service providers are competitors who also
    directly or indirectly sell payment processing services to
    customers in competition with us. With respect to these
    organizations and service providers, we have significantly less
    control over the systems and processes than if we were to
    maintain and operate them ourselves. In some cases, functions
    necessary to our business are performed on proprietary
    third-party systems and software to which we have no access. We
    also generally do not have long-term contracts with these
    organizations and service providers. Accordingly, the failure of
    these organizations and service providers to renew their
    contracts with us or fulfill their contractual obligations and
    perform satisfactorily could result in significant disruptions
    to our operations and adversely affect operating results. In
    addition, businesses that we have acquired, or may acquire in
    the future, typically rely on other payment processing service
    providers. We may encounter difficulty converting payment
    processing services from these service providers to our payment
    processing platform. If we are required to find an alternative
    source for performing these functions, we may have to expend
    significant money, time and other resources to develop or obtain
    an alternative, and if developing or obtaining an alternative is
    not accomplished in a timely manner and without significant
    disruption to our business, we may be unable to fulfill our
    responsibilities to customers or meet their expectations, with
    the attendant potential for liability claims, damage to our
    reputation, loss of ability to attract or maintain customers and
    reduction of our revenue or profits.
We
    face a number of risks in our payment processing business that
    could result in a reduction in our revenues and
    profits.
In connection with our payment processing services, we collect
    resident funds and subsequently remit these resident funds to
    our customers after varying holding periods. These funds are
    settled through our sponsor bank, and in the case of EFT, our
    Originating Depository Financial Institution, or ODFI.
    Currently, we rely on Wells Fargo, N.A. and JPMorgan Chase Bank,
    N.A. as our sponsor banks. In 2010, we expect to enter into
    similar sponsor bank relationships with one or more other
    national banking institutions. The custodial balances that we
    hold for our customers at our sponsor bank are identified in our
    consolidated balance sheets as restricted cash and the
    corresponding liability for these custodial balances is
    identified as customer deposits. Our payment
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processing business and related maintenance of custodial
    accounts subjects us to a number of risks, including, but not
    limited to:
•
liability for customer costs related to disputed or fraudulent
    merchant transactions if those amounts exceed the amount of the
    customer reserves we have established to make such payments;
•
limits on the amount of custodial balances that any single ODFI
    will underwrite;
•
reliance on bank sponsors and card payment processors and other
    service providers to process bank card transactions;
•
failure by us or our bank sponsors to adhere to applicable laws
    and regulatory requirements or the standards of the Visa and
    MasterCard credit card associations;
•
incidences of fraud or a security breach or our failure to
    comply with required external audit standards; and
•
our inability to increase our fees at times when Visa and
    MasterCard increase their merchant transaction processing fees.
If any of these risks related to our payment processing business
    were to occur, our business or financial results could be
    negatively affected. Additionally, with respect to the
    processing of EFTs, we are exposed to financial risk. EFTs
    between a resident and our customer may be returned for
    insufficient funds, or NSFs, or rejected. These NSFs and rejects
    are charged back to the customer by us. However, if we or our
    sponsor banks are unable to collect such amounts from the
    customer's account or if the customer refuses or is unable
    to reimburse us for the chargeback, we bear the risk of loss for
    the amount of the transfer. While we have not experienced
    material losses resulting from chargebacks in the past, there
    can be no assurance that we will not experience significant
    losses from chargebacks in the future. Any increase in
    chargebacks not paid by our customers may adversely affect our
    financial condition and results of operations.
If our
    security measures are breached and unauthorized access is
    obtained to our customers' or their residents' data,
    we may incur significant liabilities, our solutions may be
    perceived as not being secure and customers may curtail or stop
    using our solutions.
The solutions we provide involve the collection, storage and
    transmission of confidential personal and proprietary
    information regarding our customers and our customers'
    current and prospective residents. Specifically, we collect,
    store and transmit a variety of customer data including, but not
    limited to, the demographic information and payment histories of
    our customers' prospective and current residents.
    Additionally, we collect and transmit sensitive financial data
    such as credit card and bank account information. If our
    security measures are breached as a result of third-party
    actions or any employees' or contractors' errors or
    malfeasance or otherwise, and someone obtains unauthorized
    access to this information, we could incur significant liability
    to our customers and to their prospective or current residents
    or significant fines and sanctions by processing networks or
    governmental bodies, any of which could result in harm to our
    business and damage to our reputation.
We also rely upon our customers as users of our system to
    promote security of the system and the data within it, such as
    administration of customer-side access credentialing and control
    of customer-side display of data. On occasion, our customers
    have failed to perform these activities in such a manner as to
    prevent unauthorized access to data. To date, these breaches
    have not resulted in claims against us or in material harm to
    our business, but we cannot be certain that the failure of our
    customers in future periods to perform these activities will not
    result in claims against us, which could expose us to potential
    litigation and harm to our reputation.
There can be no certainty that the measures we have taken to
    protect the privacy and integrity of our customers' and
    their current or prospective residents' data are adequate
    to prevent or remedy unauthorized access to our system. Because
    techniques used to obtain unauthorized access to, or to
    sabotage, systems change frequently and generally are not
    recognized until launched against a target, we may be unable to
    anticipate these techniques or to implement adequate preventive
    measures. Experienced computer programmers seeking to intrude or
    cause harm, or hackers, may attempt to penetrate our service
    infrastructure from time to
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time. Although we have not experienced any material security
    breaches to date, a hacker who is able to penetrate our service
    infrastructure could misappropriate proprietary or confidential
    information or cause interruptions in our services. We might be
    required to expend significant capital and resources to protect
    against, or to alleviate, problems caused by hackers, and we may
    not have a timely remedy against a hacker who is able to
    penetrate our service infrastructure. In addition to purposeful
    breaches, the inadvertent transmission of computer viruses could
    expose us to security risks. If an actual or perceived breach of
    our security occurs or if our customers and potential customers
    perceive vulnerabilities, the market perception of the
    effectiveness of our security measures could be harmed and we
    could lose sales and customers.
If we
    are unable to cost-effectively scale or adapt our existing
    architecture to accommodate increased traffic, technological
    advances or changing customer requirements, our operating
    results could be harmed.
As we continue to increase our customer base, the number of
    users accessing our on demand software solutions over the
    Internet will continue to increase. Increased traffic could
    result in slow access speeds. Since our customer agreements
    typically include service availability commitments, slow access
    speeds or our failure to accommodate increased traffic could
    result in breaches of our customer agreements. In addition, the
    market for our solutions is characterized by rapid technological
    advances and changes in customer requirements. In order to
    accommodate increased traffic and respond to technological
    advances and evolving customer requirements, we expect that we
    will be required to make future investments in our network
    architecture. If we do not implement future upgrades to our
    network architecture cost-effectively, or if we experience
    prolonged delays or unforeseen difficulties in connection with
    upgrading our network architecture, our service quality may
    suffer and our operating results could be harmed.
Because
    certain solutions we provide depend on access to customer data,
    decreased access to this data or the failure to comply with
    applicable privacy laws and regulations or address privacy
    concerns applicable to such data could harm our
    business.
Certain of our solutions depend on our continued access to our
    customers' data regarding their prospective and current
    residents, including data compiled by other third-party service
    providers who collect and store data on behalf of our customers.
    Federal and state governments and agencies have adopted, or are
    considering adopting, laws and regulations regarding the
    collection, use and disclosure of such data. Any decrease in the
    availability of such data from our customers, or other third
    parties that collect and store such data on behalf of our
    customers, and the costs of compliance with, and other burdens
    imposed by, applicable legislative and regulatory initiatives
    may limit our ability to collect, aggregate or use this data.
    Any limitations on our ability to collect, aggregate or use such
    data could reduce demand for certain of our solutions.
    Additionally, any inability to adequately address privacy
    concerns, even if unfounded, or comply with applicable privacy
    laws, regulations and policies, could result in liability to us
    or damage to our reputation and could inhibit sales and market
    acceptance of our solutions and harm our business.
The
    market for on demand software solutions in the rental housing
    industry is new and continues to develop, and if it does not
    develop further or develops more slowly than we expect, our
    business will be harmed.
The market for on demand software solutions in the rental
    housing industry delivered via the Internet through a web
    browser is rapidly growing but still relatively immature
    compared to the market for traditional on premise software
    installed on a customer's local personal computer or
    server. It is uncertain whether the on demand delivery model
    will achieve and sustain high levels of demand and market
    acceptance, making our business and future prospects difficult
    to evaluate and predict. While our existing customer base has
    widely accepted this new model, our future success will depend,
    to a large extent, on the willingness of our potential customers
    to choose on demand software solutions for business processes
    that they view as critical. Many of our potential customers have
    invested substantial effort and financial resources to integrate
    traditional enterprise software into their businesses and may be
    reluctant or unwilling to switch to on demand software
    solutions. Some businesses may be reluctant or unwilling to use
    on demand software solutions because they have concerns
    regarding the risks associated with security capabilities,
    reliability and availability, among other
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things, of the on demand delivery model. If potential customers
    do not consider on demand software solutions to be beneficial,
    then the market for these solutions may not further develop, or
    it may develop more slowly than we expect, either of which would
    adversely affect our operating results.
Economic
    trends that affect the rental housing market may have a negative
    effect on our business.
Our customers include a range of organizations whose success is
    intrinsically linked to the rental housing market. Economic
    trends that negatively affect the rental housing market may
    adversely affect our business. The recent downturn in the global
    economy has caused volatility in the real estate markets,
    generally, including the rental housing market, and increases in
    the rates of mortgage defaults and bankruptcy. Continued
    instability or downturns affecting the rental housing market may
    have a material adverse effect on our business, prospects,
    financial condition and results of operations by:
•
reducing the number of occupied sites and units on which we earn
    revenue;
•
preventing our customers from expanding their businesses and
    managing new properties;
•
causing our customers to reduce spending on our solutions;
•
subjecting us to increased pricing pressure in order to add new
    customers and retain existing customers;
•
causing our customers to switch to lower-priced solutions
    provided by our competitors or internally-developed solutions;
•
delaying or preventing our collection of outstanding accounts
    receivable; and
•
causing payment processing losses related to an increase in
    customer insolvency.
We may
    require additional capital to support business growth, and this
    capital might not be available.
We intend to continue to make investments to support our
    business growth and may require additional funds to respond to
    business challenges or opportunities, including the need to
    develop new solutions or enhance our existing solutions, enhance
    our operating infrastructure or acquire businesses and
    technologies. Accordingly, we may need to engage in equity or
    debt financings to secure additional funds. If we raise
    additional funds through further issuances of equity or
    convertible debt securities, our existing stockholders could
    suffer significant dilution, and any new equity securities we
    issue could have rights, preferences and privileges superior to
    those of holders of our common stock. Debt financing secured by
    us in the future could involve additional restrictive covenants
    relating to our capital raising activities and other financial
    and operational matters, which may make it more difficult for us
    to obtain additional capital and to pursue business
    opportunities, including potential acquisitions. In addition, we
    may not be able to obtain additional financing on terms
    favorable to us, if at all. If we are unable to obtain adequate
    financing or financing on terms satisfactory to us when we
    require it, our ability to continue to support our business
    growth and to respond to business challenges or opportunities
    could be significantly limited.
Our
    debt obligations contain restrictions that impact our business
    and expose us to risks that could adversely affect our liquidity
    and financial condition.
On September 3, 2009, we entered into a credit facility
    with Wells Fargo Capital Finance, LLC (formerly Wells Fargo
    Foothill, LLC) and Comerica Bank. As amended, the credit
    facility provides for borrowings of up to $55.0 million,
    including a revolving facility of up to $10.0 million,
    which is subject to a borrowing base and provides for a sublimit
    of $5.0 million for the issuance of letters of credit on
    our behalf, and a term loan facility of $45.0 million. At
    December 31, 2009, we had no outstanding indebtedness under
    the revolving facility and approximately $33.7 million of
    outstanding indebtedness under the term loan facility. On
    February 10, 2010, we borrowed an additional
    $10.0 million under the term loan facility in connection
    with an acquisition. Our interest expense in 2009 for the credit
    facility was approximately $0.9 million.
Advances under the credit facility may be voluntarily prepaid,
    and must be prepaid with the proceeds of certain dispositions,
    extraordinary receipts, indebtedness and equity, with excess
    cash flow and in full upon a
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change in control. Our lenders have waived the requirement under
    the credit facility that we prepay the credit facility with the
    proceeds of this offering. However, this waiver will expire if
    we do not complete this offering by December 31, 2010.
    Voluntary prepayments and mandatory prepayments from the
    proceeds of indebtedness and equity are subject to a prepayment
    premium of 2.0% in the first year of the credit facility, which
    is reduced to 1.5% in the event the credit facility is
    terminated and prepaid in full from the proceeds of this
    offering, 1.0% in the second year of the facility, 0.5% in the
    third year of the facility and 0% thereafter. Such prepayments
    will be applied first to reduce the term loan, and then to
    reduce availability under the revolver.
All of our obligations under the loan facility are secured by
    substantially all of our property. All of our existing and
    future domestic subsidiaries are required to guaranty our
    obligations under the credit facility, other than certain
    immaterial subsidiaries and our payment processing subsidiary,
    RealPage Payment Processing Services, Inc. Our foreign
    subsidiaries may, under certain circumstances, be required to
    guaranty our obligations under the credit facility. Such
    guarantees by existing and future subsidiaries are and will be
    secured by substantially all of the property of such
    subsidiaries.
Our credit facility contains customary covenants, which limit
    our and certain of our subsidiaries' ability to, among
    other things:
•
incur additional indebtedness or guarantee indebtedness of
    others;
•
create liens on our assets;
•
enter into mergers or consolidations;
•
dispose of assets;
•
prepay indebtedness or make changes to our governing documents
    and certain of our agreements;
•
pay dividends and make other distributions on our capital stock,
    and redeem and repurchase our capital stock;
•
make investments, including acquisitions;
•
enter into transactions with affiliates; and
•
make capital expenditures.
Our credit facility also contains customary affirmative
    covenants, including a fixed charge coverage ratio and a senior
    leverage ratio.
The credit facility contains customary events of default,
    subject to customary cure periods for certain defaults, that
    include, among others, non-payment defaults, covenant defaults,
    material judgment defaults, bankruptcy and insolvency defaults,
    cross-defaults to certain other material indebtedness and
    inaccuracy of representations and warranties.
If we experience a decline in cash flow due to any of the
    factors described in this "Risk Factors" section or
    otherwise, we could have difficulty paying interest and
    principal amounts due on our indebtedness and meeting the
    financial covenants set forth in our credit facility. If we are
    unable to generate sufficient cash flow or otherwise obtain the
    funds necessary to make required payments under our credit
    facility, or if we fail to comply with the requirements of our
    indebtedness, we could default under our credit facility. Any
    such default that is not cured or waived could result in the
    acceleration of the obligations under the credit facility, an
    increase in the applicable interest rate under the credit
    facility and a requirement that our subsidiaries that have
    guaranteed the credit facility pay the obligations in full, and
    would permit our lender to exercise remedies with respect to all
    of the collateral that is securing the credit facility,
    including substantially all of our and our subsidiary
    guarantors' assets. Any such default could have a material
    adverse effect on our liquidity and financial condition.
Even if we comply with all of the applicable covenants, the
    restrictions on the conduct of our business could adversely
    affect our business by, among other things, limiting our ability
    to take advantage of financings, mergers, acquisitions and other
    corporate opportunities that may be beneficial to the business.
    Even if the
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credit facility were terminated, additional debt we could incur
    in the future may subject us to similar or additional covenants.
We also have substantial equipment lease obligations, which
    totaled approximately $2.1 million as of December 31,
    2009. If we are unable to generate sufficient cash flow from our
    operations or cash from other sources in order to meet the
    payment obligations under these equipment leases, we may lose
    the right to possess and operate the equipment used in our
    business, which would substantially impair our ability to
    provide our solutions and could have a material adverse effect
    on our liquidity or results of operations.
Assertions
    by a third party that we infringe its intellectual property,
    whether successful or not, could subject us to costly and
    time-consuming litigation or expensive licenses.
The software and technology industries are characterized by the
    existence of a large number of patents, copyrights, trademarks
    and trade secrets and by frequent litigation based on
    allegations of infringement, misappropriation, misuse and other
    violations of intellectual property rights. We have received in
    the past, and may receive in the future, communications from
    third parties claiming that we have infringed or otherwise
    misappropriated the intellectual property rights of others. Our
    technologies may not be able to withstand any third-party claims
    against their use. Since we currently have no patents, we may
    not use patent infringement as a defensive strategy in such
    litigation. Additionally, although we have licensed from other
    parties proprietary technology covered by patents, we cannot be
    certain that any such patents will not be challenged,
    invalidated or circumvented. If such patents are invalidated or
    circumvented, this may allow existing and potential competitors
    to develop products and services that are competitive with, or
    superior to, our solutions.
Many of our customer agreements require us to indemnify our
    customers for certain third-party intellectual property
    infringement claims, which could increase our costs as a result
    of defending such claims and may require that we pay damages if
    there were an adverse ruling or settlement related to any such
    claims. These types of claims could harm our relationships with
    our customers, may deter future customers from purchasing our
    solutions or could expose us to litigation for these claims.
    Even if we are not a party to any litigation between a customer
    and a third party, an adverse outcome in any such litigation
    could make it more difficult for us to defend our intellectual
    property in any subsequent litigation in which we are a named
    party.
Any intellectual property rights claim against us or our
    customers, with or without merit, could be time-consuming,
    expensive to litigate or settle and could divert
    management's attention and our financial resources. Any
    such litigation could force us to stop selling, incorporating or
    using our solutions that include the challenged intellectual
    property or redesign those solutions that use the technology. In
    addition, we may have to pay damages if we are found to be in
    violation of a third party's rights. We may have to procure
    a license for the technology, which may not be available on
    reasonable terms, if at all, may significantly increase our
    operating expenses or may require us to restrict our business
    activities in one or more respects. As a result, we may also be
    required to develop alternative non-infringing technology, which
    could require significant effort and expense. We cannot assure
    you we would be able to develop alternative solutions or, if
    alternative solutions were developed, that they would perform as
    required or be accepted in the relevant markets. In some
    instances, if we are unable to offer non-infringing technology,
    or obtain a license for such technology, we will be required to
    refund some or the entire license fee paid for the infringing
    technology to our customers.
Our exposure to risks associated with the use of intellectual
    property may be increased as a result of acquisitions, as we
    have a lower level of visibility into the development process
    with respect to acquired technology or the care taken to
    safeguard against infringement risks. Third parties may make
    infringement and similar or related claims after we have
    acquired technology that had not been asserted prior to our
    acquisition.
Any
    failure to protect and successfully enforce our intellectual
    property rights could compromise our proprietary technology and
    impair our brands.
Our success depends significantly on our ability to protect our
    proprietary rights to the technologies we use in our solutions.
    If we are unable to protect our proprietary rights adequately,
    our competitors could use the intellectual property we have
    developed to enhance their own products and services, which
    could harm our business. We rely on a combination of copyright,
    service mark, trademark and trade secret laws, as well as
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confidentiality procedures and contractual restrictions, to
    establish and protect our proprietary rights, all of which
    provide only limited protection. We currently have no issued
    patents or pending patent applications and may be unable to
    obtain patent protection in the future. In addition, if any
    patents are issued in the future, they may not provide us with
    any competitive advantages, may not be issued in a manner that
    gives us the protection that we seek and may be successfully
    challenged by third parties. Unauthorized parties may attempt to
    copy or otherwise obtain and use the technologies underlying our
    solutions. Monitoring unauthorized use of our technologies is
    difficult, and we do not know whether the steps we have taken
    will prevent unauthorized use of our technology. If we are
    unable to protect our proprietary rights, we may find ourselves
    at a competitive disadvantage to others who have not incurred
    the substantial expense, time and effort required to create
    similar innovative products.
We cannot assure you that any future service mark or trademark
    registrations will be issued for pending or future applications
    or that any registered service marks or trademarks will be
    enforceable or provide adequate protection of our proprietary
    rights. If we are unable to secure new marks, maintain already
    existing marks and enforce the rights to use such marks against
    unauthorized third-party use, our ability to brand, identify and
    promote our solutions in the marketplace could be impaired,
    which could harm our business.
We customarily enter into agreements with our employees,
    contractors and parties with whom we do business to limit access
    to and disclosure of our proprietary information. The steps we
    have taken, however, may not prevent unauthorized use or the
    reverse engineering of our technology. Moreover, we may be
    required to release the source code of our software to third
    parties under certain circumstances. For example, some of our
    customer agreements provide that if we cease to maintain or
    support a certain solution without replacing it with a successor
    solution, then we may be required to release the source code of
    the software underlying such solution. In addition, others may
    independently develop technologies that are competitive to ours
    or infringe our intellectual property. Enforcement of our
    intellectual property rights also depends on our legal actions
    being successful against these infringers, but these actions may
    not be successful, even when our rights have been infringed.
    Furthermore, the legal standards relating to the validity,
    enforceability and scope of protection of intellectual property
    rights in Internet-related industries are uncertain and still
    evolving.
Additionally, if we sell our solutions internationally in the
    future, effective patent, trademark, service mark, copyright and
    trade secret protection may not be available or as robust in
    every country in which our solutions are available. As a result,
    we may not be able to effectively prevent competitors outside
    the United States from infringing or otherwise misappropriating
    our intellectual property rights, which could reduce our
    competitive advantage and ability to compete or otherwise harm
    our business.
Current
    and future litigation against us could be costly and time
    consuming to defend.
We are from time to time subject to legal proceedings and claims
    that arise in the ordinary course of business, including claims
    brought by our customers in connection with commercial disputes,
    claims brought by our customers' current or prospective
    residents, including potential class action lawsuits based on
    asserted statutory or regulatory violations, and employment
    claims made by our current or former employees. Litigation,
    regardless of its outcome, may result in substantial costs and
    may divert management's attention and our resources, which
    may harm our business, overall financial condition and operating
    results. In addition, legal claims that have not yet been
    asserted against us may be asserted in the future. Insurance may
    not cover such claims, may not be sufficient for one or more
    such claims and may not continue to be available on terms
    acceptable to us, or at all. A claim brought against us that is
    uninsured or underinsured could result in unanticipated costs,
    thereby harming our operating results.
On June 15, 2009, a prospective resident of one of our
    customers filed a class action lawsuit styled
Minor v.
    RealPage, Inc.
against us in the U.S. District Court
    for the Central District of California, which was transferred to
    the United States District Court for the Eastern District of
    Texas
(No. 4:09CV-00439).
The plaintiff has alleged two individual claims and three
class-based
causes of action against us. Individually, the plaintiff alleges
    that we (i) willfully failed to employ reasonable
    procedures to ensure the maximum accuracy of our resident
    screening reports as required by 15 U.S.C.
    § 1681e(b) and, in the alternative,
    (ii) negligently (within the meaning of 15 U.S.C.
    § 1681o(a)) failed to employ reasonable procedures to
    ensure the maximum
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accuracy of our resident screening reports, as required by
    15 U.S.C. § 1681e(b), in each case stemming from
    our provision of a report that allegedly included inaccurate
    criminal conviction information. The plaintiff seeks actual,
    statutory and punitive damages on her individual claims. In her
    capacity as the putative class representative, the plaintiff
    also alleges that we: (i) willfully failed to provide
    legally mandated disclosures upon a consumer's request
    inconsistent with 15 U.S.C. § 1681g;
    (ii) willfully failed to provide prompt notice of
    consumers' disputes to the data furnishers who provided us
    with the information whose accuracy was in question, as required
    by 15 U.S.C. § 1681i(a)(2); and
    (iii) willfully failed to provide prompt notice of
    consumers' disputes to the consumer reporting agencies
    providing us with the information whose accuracy was in
    question, as required by 15 U.S.C. § 1681i(f).
    She seeks statutory and punitive damages, a declaration that our
    practices and procedures are in violation of the Fair Credit
    Reporting Act and attorneys' fees and costs. Because this
    lawsuit is at an early stage, it is not possible to predict its
    outcome. We believe that we have meritorious defenses to the
    claims in this case and intend to defend it vigorously. See
    "Business — Legal Proceedings" for further
    information regarding this claim.
On March 4, 2008, we were named as a defendant in a class
    action lawsuit styled
Taylor, et al. v. Acxiom Corp.,
    et al.
filed in the U.S. District Court for the
    Eastern District of Texas
(No. 2:07-CV-00001).
Plaintiffs alleged that we obtained and held motor vehicle
    records in bulk from the State of Texas, an allegedly improper
    purpose in violation of the federal Driver's Privacy
    Protection Act, or the DPPA. In addition, the plaintiffs alleged
    that we obtained these records for the purpose of re-selling
    them, another allegedly improper purpose in violation of the
    DPPA. Plaintiffs further purported to represent a putative class
    of approximately 20.0 million individuals affected by the
    defendants' alleged DPPA violations. They sought statutory
    damages of $2,500 per each violation of the DPPA, punitive
    damages and an order requiring defendants to destroy information
    obtained in violation of the DPPA. In September 2008, the
    Eastern District of Texas dismissed plaintiffs' complaint
    for failure to state a claim. The plaintiffs subsequently
    appealed the dismissal to the U.S. Court of Appeals for the
    Fifth Circuit. In November 2009, the Fifth Circuit heard oral
    argument on the appeal. A decision has not yet been rendered. We
    believe that the claims are without merit, but there are no
    assurances as to the outcome of the litigation. See
    "Business — Legal Proceedings" for further
    information regarding this claim.
In March 2010, the District Attorney of Ventura County,
    California issued an administrative subpoena to us seeking
    certain information related to our provision of utility billing
    services in the State of California. A representative of the
    District Attorney has informed us that the subpoena was issued
    in connection with a general investigation of industry practices
    with respect to utility billing in California. Utility billing
    in California is subject to regulation by state law and various
    state administrative agencies, including the California Public
    Utility Commission, or the CPUC, and the Division of Weights and
    Measures, or the DWM. We have provided the District Attorney
    with the information requested in the subpoena. As of
    April 28, 2010, the District Attorney's office has not
    initiated an administrative or other enforcement action against
    us, nor have they asserted any violations of the applicable
    regulations by us. Given the early stage of this investigation,
    it is difficult to predict its outcome and whether the District
    Attorney will pursue an administrative or other enforcement
    action against us in the State of California and what the result
    of any such action would be. However, penalties or assessments
    of violations of regulations promulgated by the CPUC or DWM may
    be calculated on a per occurrence basis. Due to the large number
    of billing transactions we process for our customers in
    California, our potential liability in an enforcement action
    could be significant. If the District Attorney ultimately
    pursues an administrative or other enforcement action against
    us, we believe that we have meritorious defenses to the
    potential claims and would defend them vigorously. However, even
    if we were successful in defending against such claims, the
    proceedings could result in significant costs and divert
    management's attention. See "Business —
    Legal Proceedings" for further information regarding this
    claim.
We
    could be sued for contract or product liability claims, and such
    lawsuits may disrupt our business, divert management's
    attention and our financial resources or have an adverse effect
    on our financial results.
We provide warranties to customers of certain of our solutions
    relating primarily to product functionality, network uptime,
    critical infrastructure availability and hardware replacement.
    General errors, defects,
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inaccuracies or other performance problems in the software
    applications underlying our solutions or inaccuracies in the
    data we provide to our customers could result in financial or
    other damages to our customers. There can be no assurance that
    any limitations of liability set forth in our contracts would be
    enforceable or would otherwise protect us from liability for
    damages. We maintain general liability insurance coverage,
    including coverage for errors and omissions, in amounts and
    under terms that we believe are appropriate. There can be no
    assurance that this coverage will continue to be available on
    terms acceptable to us, or at all, or in sufficient amounts to
    cover one or more large product liability claims, or that the
    insurer will not deny coverage for any future claim. The
    successful assertion of one or more large product liability
    claims against us that exceeds available insurance coverage,
    could have a material adverse effect on our business, prospects,
    financial condition and results of operations.
If we
    fail to develop our brands cost-effectively, our financial
    condition and operating results could be harmed.
We market our solutions under discrete brand names. We believe
    that developing and maintaining awareness of our brands is
    critical to achieving widespread acceptance of our existing and
    future solutions and is an important element in attracting new
    customers and retaining our existing customers. Additionally, we
    believe that developing these brands in a cost-effective manner
    is critical in meeting our expected margins. In the past, our
    efforts to build our brands have involved significant expenses
    and we intend to continue to make expenditures on brand
    promotion. Brand promotion activities may not yield increased
    revenue, and even if they do, any increased revenue may not
    offset the expenses we incurred in building our brands. If we
    fail to cost-effectively build and maintain our brands, we may
    fail to attract new customers or retain our existing customers,
    and our financial condition and results of operations could be
    harmed.
If we
    fail to maintain proper and effective internal controls, our
    ability to produce accurate and timely financial statements
    could be impaired, which could harm our operating results, our
    ability to operate our business and investors' views of
    us.
Ensuring that we have adequate internal financial and accounting
    controls and procedures in place so that we can produce accurate
    financial statements on a timely basis is a costly and
    time-consuming effort that needs to be re-evaluated frequently.
    Our internal control over financial reporting is a process
    designed to provide reasonable assurance regarding the
    reliability of financial reporting and the preparation of
    financial statements in accordance with GAAP. We are in the
    process of documenting, reviewing and improving our internal
    controls and procedures for compliance with Section 404 of
    the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, which
    requires annual management assessment of the effectiveness of
    our internal control over financial reporting and a report by
    our independent auditors. Both we and our independent auditors
    will be testing our internal controls in connection with the
    audit of our financial statements for the year ending
    December 31, 2011 and, as part of that testing, may
    identify areas for further attention and improvement. If we fail
    to maintain proper and effective internal controls, our ability
    to produce accurate and timely financial statements could be
    impaired, which could harm our operating results, harm our
    ability to operate our business and reduce the trading price of
    our stock.
Changes
    in, or errors in our interpretations and applications of,
    financial accounting standards or practices may cause adverse,
    unexpected financial reporting fluctuations and affect our
    reported results of operations.
A change in accounting standards or practices can have a
    significant effect on our reported results and may even affect
    our reporting of transactions completed before the change is
    effective. New accounting pronouncements and varying
    interpretations of accounting pronouncements have occurred and
    may occur in the future. Changes to existing rules or the
    questioning of current practices or errors in our
    interpretations and applications of financial accounting
    standards or practices may adversely affect our reported
    financial results or the way in which we conduct our business.
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We
    will incur increased costs and demands upon management as a
    result of complying with the laws and regulations affecting
    public companies, which could harm our operating
    results.
As a public company, we will incur significant legal,
    accounting, investor relations and other expenses that we did
    not incur as a private company, including costs associated with
    public company reporting requirements. We also have incurred and
    will incur costs associated with current corporate governance
    requirements, including requirements under Section 404 and
    other provisions of the Sarbanes-Oxley Act, as well as rules
    implemented by the Securities Exchange Commission and the NASDAQ
    Global Market. We expect these rules and regulations to increase
    our legal and financial compliance costs substantially and to
    make some activities more time-consuming and costly. We also
    expect that, as a public company, it will be more expensive for
    us to obtain director and officer liability insurance and that
    it may be more difficult for us to attract and retain qualified
    individuals to serve on our board of directors or as our
    executive officers.
Government
    regulation of the rental housing industry, including background
    screening services and utility billing, the Internet and
e-commerce
is evolving, and changes in regulations or our failure to comply
    with regulations could harm our operating results.
The rental housing industry is subject to extensive and complex
    federal, state and local regulations. Our services and solutions
    must work within the extensive and evolving regulatory
    requirements applicable to our customers and third-party service
    providers, including, but not limited to, those under the Fair
    Credit Reporting Act, the Fair Housing Act, the Deceptive Trade
    Practices Act, the DPPA, the Gramm-Leach-Bliley Act, the Fair
    and Accurate Credit Transactions Act, the Privacy Rules,
    Safeguards Rule and Consumer Report Information Disposal Rule
    promulgated by the Federal Trade Commission, or FTC,  the
    regulations of the United States Department of Housing and Urban
    Development, or HUD, and complex and divergent state and local
    laws and regulations related to data privacy and security,
    credit and consumer reporting, deceptive trade practices,
    discrimination in housing, utility billing and energy and gas
    consumption. These regulations are complex, change frequently
    and may become more stringent over time. Although we attempt to
    structure and adapt our solutions and service offerings to
    comply with these complex and evolving laws and regulations, we
    may be found to be in violation. If we are found to be in
    violation of any applicable laws or regulations, we could be
    subject to administrative and other enforcement actions as well
    as class action lawsuits. Additionally, many applicable laws and
    regulations provide for penalties or assessments on a per
    occurrence basis. Due to the nature of our business, the type of
    services we provide and the large number of transactions
    processed by our solutions, our potential liability in an
    enforcement action or class action lawsuit could be significant.
    In addition, entities such as HUD and the FTC have the authority
    to promulgate rules and regulations that may impact our
    customers and our business. We believe increased regulation is
    likely in the area of data privacy, and laws and regulations
    applying to the solicitation, collection, processing or use of
    personally identifiable information or consumer information
    could affect our customers' ability to use and share data,
    potentially reducing demand for our on demand software solutions.
We deliver our on demand software solutions over the Internet
    and sell and market certain of our solutions over the Internet.
    As Internet commerce continues to evolve, increasing regulation
    by federal, state or foreign agencies becomes more likely.
    Taxation of products or services provided over the Internet or
    other charges imposed by government agencies or by private
    organizations for accessing the Internet may also be imposed.
    Any regulation imposing greater fees for Internet use or
    restricting information exchange over the Internet could result
    in a decline in the use of the Internet and the viability of on
    demand software solutions, which could harm our business and
    operating results.
Our
    LeasingDesk insurance business is subject to governmental
    regulation which could reduce our profitability or limit our
    growth.
We hold insurance agent licenses from a number of individual
    state departments of insurance and are subject to state
    governmental regulation and supervision in connection with the
    operation of our LeasingDesk insurance business. This state
    governmental supervision could reduce our profitability or limit
    the growth of our LeasingDesk insurance business by increasing
    the costs of regulatory compliance, limiting or restricting the
    solutions we provide or the methods by which we provide them or
    subjecting us to the possibility of
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regulatory actions or proceedings. Our continued ability to
    maintain these insurance agent licenses in the jurisdictions in
    which we are licensed depends on our compliance with the rules
    and regulations promulgated from time to time by the regulatory
    authorities in each of these jurisdictions. Furthermore, state
    insurance departments conduct periodic examinations, audits and
    investigations of the affairs of insurance agents.
In all jurisdictions, the applicable laws and regulations are
    subject to amendment or interpretation by regulatory
    authorities. Generally, such authorities are vested with
    relatively broad discretion to grant, renew and revoke licenses
    and approvals and to implement regulations. Accordingly, we may
    be precluded or temporarily suspended from carrying on some or
    all of the activities of our LeasingDesk insurance business or
    otherwise be fined or penalized in a given jurisdiction. No
    assurances can be given that our LeasingDesk insurance business
    can continue to be conducted in any given jurisdiction as it has
    been conducted in the past.
We
    generate commission revenue from the insurance policies we sell
    as a registered insurance agent and if insurance premiums
    decline or if the insureds experience greater than expected
    losses, our revenues could decline and our operating results
    could be harmed.
Through our wholly owned subsidiary, Multifamily Internet
    Ventures LLC, a managing general insurance agency, we generate
    commission revenue from offering liability and renter's
    insurance. Additionally, Multifamily Internet Ventures LLC has
    recently commenced the sale of additional insurance products,
    including auto and other personal lines insurance, to residents
    that buy renter's insurance from us. These policies are
    ultimately underwritten by various insurance carriers. Some of
    the property owners and managers that subscribe to our solution
    opt to require residents to purchase rental insurance policies
    and agree to allow Multifamily Internet Ventures LLC to act as
    the exclusive insurance broker to their property. If demand for
    residential rental housing declines, property owners and
    managers may be forced to reduce their rental rates and to stop
    requiring the purchase of rental insurance in order to reduce
    the overall cost of renting. If property owners or managers
    cease to require renter's insurance, elect to offer
    policies from competing providers or insurance premiums decline,
    our revenues from selling insurance policies will be adversely
    affected.
Additionally, one type of commission paid by insurance carriers
    to Multifamily Internet Ventures LLC is contingent commission,
    which is based on claims experienced at the properties for which
    the residents purchase insurance. In the event that claims by
    the insureds increase unexpectedly, the contingent commission we
    typically earn will be adversely affected. As a result, our
    quarterly operating results could fall below the expectations of
    analysts or investors, in which event our stock price may
    decline.
Our
    ability to use net operating losses to offset future taxable
    income may be subject to certain limitations.
In general, under Section 382 of the Internal Revenue Code
    of 1986, as amended, or the Internal Revenue Code, a corporation
    that undergoes an "ownership change" is subject to
    limitations on its ability to utilize its pre-change net
    operating losses, or NOLs, to offset future taxable income. Our
    ability to utilize NOLs of companies that we may acquire in the
    future may be subject to limitations. Future changes in our
    stock ownership, some of which are outside of our control, could
    result in an ownership change under Section 382 of the
    Internal Revenue Code. For these reasons, we may not be able to
    utilize a material portion of the NOLs reflected on our balance
    sheet, even if we maintain profitability.
If we
    are required to collect sales and use taxes on the solutions we
    sell in additional taxing jurisdictions, we may be subject to
    liability for past sales and our future sales may
    decrease.
States and some local taxing jurisdictions have differing rules
    and regulations governing sales and use taxes, and these rules
    and regulations are subject to varying interpretations that may
    change over time. We review these rules and regulations
    periodically and currently collect and remit sales taxes in
    taxing jurisdictions where we believe we are required to do so.
    However, additional state
and/or
local
    taxing jurisdictions may seek to impose sales or other tax
    collection obligations on us, including for past sales. A
    successful assertion that we should be collecting additional
    sales or other taxes on our solutions could result in
    substantial tax liabilities for past sales, discourage customers
    from purchasing our solutions or may otherwise harm our business
    and operating results. This risk is greater with regard to
    solutions acquired through acquisitions.
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We may also become subject to tax audits or similar procedures
    in jurisdictions where we already collect and remit sales taxes.
    A successful assertion that we have not collected and remitted
    taxes at the appropriate levels may also result in substantial
    tax liabilities for past sales. Liability for past taxes may
    also include very substantial interest and penalty charges. Our
    customer contracts provide that our customers must pay all
    applicable sales and similar taxes. Nevertheless, customers may
    be reluctant to pay back taxes and may refuse responsibility for
    interest or penalties associated with those taxes. If we are
    required to collect and pay back taxes and the associated
    interest and penalties, and if our customers fail or refuse to
    reimburse us for all or a portion of these amounts, we will
    incur unplanned expenses that may be substantial. Moreover,
    imposition of such taxes on our solutions going forward will
    effectively increase the cost of such solutions to our customers
    and may adversely affect our ability to retain existing
    customers or to gain new customers in the areas in which such
    taxes are imposed.
Changes
    in our effective tax rate could harm our future operating
    results.
We are subject to federal and state income taxes in the United
    States and various foreign jurisdictions, and our domestic and
    international tax liabilities are subject to the allocation of
    expenses in differing jurisdictions. Our tax rate is affected by
    changes in the mix of earnings and losses in jurisdictions with
    differing statutory tax rates, including jurisdictions in which
    we have completed or may complete acquisitions, certain
    non-deductible expenses arising from the requirement to expense
    stock options and the valuation of deferred tax assets and
    liabilities, including our ability to utilize our net operating
    losses. Increases in our effective tax rate could harm our
    operating results.
We
    rely on our management team and need additional personnel to
    grow our business, and the loss of one or more key employees or
    our inability to attract and retain qualified personnel could
    harm our business.
Our success and future growth depend on the skills, working
    relationships and continued services of our management team. The
    loss of our Chief Executive Officer or other senior executives
    could adversely affect our business. Our future success also
    will depend on our ability to attract, retain and motivate
    highly skilled software developers, marketing and sales
    personnel, technical support and product development personnel
    in the United States and internationally. All of our employees
    work for us on an at-will basis. Competition for these types of
    personnel is intense, particularly in the software industry. As
    a result, we may be unable to attract or retain qualified
    personnel. Our inability to attract and retain the necessary
    personnel could adversely affect our business.
Our
    corporate culture has contributed to our success, and if we
    cannot maintain this culture as we grow, we could lose the
    innovation, creativity and teamwork fostered by our culture, and
    our business may be harmed.
We believe that a strong corporate culture that nurtures core
    values and philosophies is essential to our long-term success.
    We call these values and philosophies the "RealPage
    Promise" and we seek to practice the RealPage Promise in
    our actions every day. The RealPage Promise embodies our
    corporate values with respect to customer service, investor
    communications, employee respect and professional development
    and management decision-making and leadership. As our
    organization grows and we are required to implement more complex
    organizational structures, we may find it increasingly difficult
    to maintain the beneficial aspects of our corporate culture
    which could negatively impact our future success.
Risks
    Related to this Offering and Ownership of our Common
    Stock
The
    concentration of our capital stock owned by insiders upon the
    completion of this offering will limit your ability to influence
    corporate matters.
We anticipate that our executive officers, directors, current 5%
    or greater stockholders and entities affiliated with them will
    together beneficially own approximately   % of
    our common stock following this offering, or   %
    if the underwriters exercise their over-allotment option in
    full. Further, we anticipate that Stephen T. Winn, our Chief
    Executive Officer and Chairman of the Board, or entities
    beneficially owned by
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Mr. Winn will hold an aggregate of
    approximately   % of our common stock following
    this offering, or   % if the underwriters
    exercise their over-allotment option in full. This significant
    concentration of ownership may adversely affect the trading
    price for our common stock because investors often perceive
    disadvantages in owning stock in companies with controlling
    stockholders. Mr. Winn, or other insider stockholders
    acting together, will be able to control our management and
    affairs and matters requiring stockholder approval, including
    the election of directors and the approval of significant
    corporate transactions, such as mergers, consolidations or the
    sale of substantially all of our assets. Consequently, this
    concentration of ownership may have the effect of delaying or
    preventing a change of control, including a merger,
    consolidation or other business combination involving us, or
    discouraging a potential acquirer from making a tender offer or
    otherwise attempting to obtain control, even if that change of
    control would benefit our other stockholders.
An
    active, liquid and orderly trading market for our common stock
    may not develop, the price of our stock may be volatile and you
    could lose all or part of your investment.
Before this offering, there has been no public market for shares
    of our common stock. We cannot predict the extent to which
    investor interest in our company will lead to the development of
    a trading market or how liquid that market might become. The
    initial public offering price for the shares of our common stock
    will be determined by negotiations among us, the selling
    stockholders and the underwriters, and may not be indicative of
    the price that will prevail in the trading market following this
    offering. In addition, the trading price of our common stock
    following this offering is likely to be highly volatile and
    could be subject to wide fluctuations in response to various
    factors, including, but not limited to, those described in this
    "Risk Factors" section, some of which are beyond our
    control. Factors affecting the trading price of our common stock
    will include:
•
variations in our operating results or in expectations regarding
    our operating results;
•
variations in operating results of similar companies;
•
announcements of technological innovations, new solutions or
    enhancements, strategic alliances or agreements by us or by our
    competitors;
•
announcements by competitors regarding their entry into new
    markets, and new product, service and pricing strategies;
•
marketing and advertising initiatives by us or our competitors;
•
the gain or loss of customers;
•
threatened or actual litigation;
•
major changes in our board of directors or management;
•
recruitment or departure of key personnel;
•
changes in the estimates of our operating results or changes in
    recommendations by any research analysts that elect to follow
    our common stock;
•
market conditions in our industry and the economy as a whole;
•
the overall performance of the equity markets;
•
sales of our shares of common stock by existing stockholders;
•
volatility in our stock price, which may lead to higher
    stock-based compensation expense under applicable accounting
    standards; and
•
adoption or modification of regulations, policies, procedures or
    programs applicable to our business.
In addition, the stock market in general, and the market for
    technology and specifically Internet-related companies, has
    experienced extreme price and volume fluctuations that have
    often been unrelated or disproportionate to the operating
    performance of those companies. Broad market and industry
    factors may harm the market price of our common stock regardless
    of our actual operating performance. These fluctuations
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may be even more pronounced in the trading market for our stock
    shortly following this offering. In addition, in the past,
    following periods of volatility in the overall market and the
    market price of a particular company's securities,
    securities class action litigation has often been instituted
    against these companies. This litigation, if instituted against
    us, could result in substantial costs and a diversion of our
    management's attention and our resources, whether or not we
    are successful in such litigation.
Our
    stock price could decline due to the large number of outstanding
    shares of our common stock eligible for future
    sale.
Sales of substantial amounts of our common stock in the public
    market following this offering, or the perception that these
    sales could occur, could cause the market price of our common
    stock to decline. These sales could also make it more difficult
    for us to sell equity or equity-related securities in the future
    at a time and price that we deem appropriate.
Upon completion of this offering, we will
    have          shares
    of common stock outstanding, assuming no exercise of outstanding
    options after December 31, 2009. The shares sold in this
    offering will be immediately tradable without restriction. Of
    the remaining shares:
•
shares
    will be eligible for sale immediately upon completion of this
    offering;
•
shares
    will be eligible for sale beginning 90 days after the date
    of this prospectus; and
•
shares
    will be eligible for sale upon the expiration of
lock-up
agreements, subject in some cases to volume and other
    restrictions of Rule 144 and Rule 701 under the
    Securities Act of 1933, as amended, or the Securities Act.
The
lock-up
agreements expire 180 days after the date of this
    prospectus, except that the
180-day
period may be extended in certain cases for up to 34 additional
    days under certain circumstances where we announce or
    pre-announce earnings or a material event occurs within
    approximately 17 days prior to, or approximately
    16 days after, the termination of the
180-day
period. The representatives of the underwriters may, in their
    sole discretion and at any time without notice, release all or
    any portion of the securities subject to
lock-up
agreements.
Following this offering, holders
    of      % of our common stock not
    sold in this offering will be entitled to rights with respect to
    the registration of these shares under the Securities Act. See
    "Description of Capital Stock — Registration
    Rights." If we register their shares of common stock
    following the expiration of the
lock-up
agreements, these stockholders could sell those shares in the
    public market without being subject to the volume and other
    restrictions of Rule 144 and Rule 701.
After the closing of this offering, we intend to register
    approximately          shares
    of common stock that have been issued or reserved for future
    issuance under our stock incentive plans. Of these
    shares,                    shares
    will be eligible for sale upon the exercise of vested options
    after the expiration of the
lock-up
agreements.
Because
    our initial public offering price is substantially higher than
    the pro forma as adjusted net tangible book value per share of
    our outstanding common stock, new investors will incur immediate
    and substantial dilution.
We expect the initial public offering price of our common stock
    to be substantially higher than the pro forma as adjusted net
    tangible book value per share of our common stock based on the
    total value of our tangible assets less our total liabilities
    immediately following this offering. Therefore, if you purchase
    common stock in this offering, you will experience immediate and
    substantial dilution of approximately $    per
    share, the difference between the price you pay for our common
    stock and its pro forma as adjusted net tangible book value
    after the completion of this offering. Furthermore, investors
    purchasing common stock in this offering will own only
    approximately   % of our shares outstanding after
    the completion of this offering even though they will have
    contributed   % of the total consideration
    received by us in connection with our sales of common stock.
    After this offering, we will have an aggregate
    of                 shares
    of common stock
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authorized but unissued and not reserved for issuance under our
    stock option plans or otherwise. We intend to continue to
    actively pursue strategic acquisitions. We may pay for such
    acquisitions, partly or in full, through the issuance of
    additional equity. Following the completion of this offering, we
    may issue       shares of our
    common stock without any action or approval by our stockholders.
    Any issuance of shares in connection with our acquisitions, the
    exercise of stock options or otherwise would dilute the
    percentage ownership held by the investors who purchase our
    shares in this offering.
Our
    management will have broad discretion over the use of the
    proceeds we receive in this offering and might not apply the
    proceeds in ways that increase the value of your
    investment.
Our management will have broad discretion in the application of
    the net proceeds of this offering. We intend to use net proceeds
    of this offering to pay accumulated and unpaid dividends on our
    outstanding shares of Series A, Series A1 and
    Series B convertible preferred stock that have accrued at a
    rate of 8% per annum of the original issue price of each such
    share of preferred stock, compounded quarterly, which amounted
    to $      million as
    of          ,
    2010, and to repay approximately $18.2 million of our
    indebtedness outstanding as of December 31, 2009. Although
    we currently expect to apply the net proceeds from this offering
    primarily for working capital and general corporate purposes,
    which may include future investments in, or acquisitions of,
    complementary businesses, products or technologies, we cannot
    specify with certainty how we will apply these net proceeds and
    our use of the net proceeds of this offering may not increase
    the value of your investment.
Our
    charter documents and Delaware law could prevent a takeover that
    stockholders consider favorable and could also reduce the market
    price of our stock.
We expect that our amended and restated certificate of
    incorporation and our amended and restated bylaws, to be
    effective upon the completion of this offering, will contain
    provisions that could delay or prevent a change in control of
    our company. These provisions could also make it more difficult
    for stockholders to elect directors and take other corporate
    actions. These provisions include:
•
not providing for cumulative voting in the election of directors;
•
authorizing our board of directors to issue, without stockholder
    approval, preferred stock with rights senior to those of our
    common stock;
•
prohibiting stockholder action by written consent; and
•
requiring advance notification of stockholder nominations and
    proposals.
These and other provisions we expect to be included in our
    amended and restated certificate of incorporation and our
    amended and restated bylaws, to be effective upon the completion
    of this offering, and under Delaware law could discourage
    potential takeover attempts, reduce the price that investors
    might be willing to pay in the future for shares of our common
    stock and result in the market price of our common stock being
    lower than it would be without these provisions. See
    "Description of Capital Stock — Preferred
    Stock" and "Description of Capital Stock —
    Anti-Takeover Effects of Delaware Law and Our Certificate of
    Incorporation and Bylaws."
If
    securities analysts do not publish research or reports about our
    business or if they publish negative evaluations of our stock,
    the price of our stock could decline.
We expect that the trading price for our common stock may be
    affected by research or reports that industry or financial
    analysts publish about us or our business. If one or more of the
    analysts who cover us downgrade their evaluations of our stock,
    the price of our stock could decline. If one or more of these
    analysts cease coverage of our company, we could lose visibility
    in the market for our stock, which in turn could cause our stock
    price to decline.
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We do
    not anticipate paying any dividends on our common
    stock.
We do not anticipate paying any cash dividends on our common
    stock in the foreseeable future. If we do not pay cash
    dividends, you could receive a return on your investment in our
    common stock only if the market price of our common stock has
    increased when you sell your shares. In addition, the terms of
    our credit facilities currently restrict our ability to pay
    dividends.
34
Table of Contents
SPECIAL
    NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY
    DATA
This prospectus contains forward-looking statements that are
    based on our management's beliefs and assumptions and on
    information currently available to our management. The
    forward-looking statements are contained principally in
    "Prospectus Summary," "Risk Factors,"
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations," "Business"
    and "Executive Compensation." Forward-looking
    statements include information concerning our possible or
    assumed future results of operations, business strategies,
    financing plans, competitive position, industry environment,
    potential growth opportunities, potential market opportunities
    and the effects of competition. Forward-looking statements
    include all statements that are not historical facts and can be
    identified by terms such as "anticipates,"
    "believes," "could," "seeks,"
    "estimates," "expects," "intends,"
    "may," "plans," "potential,"
    "predicts, "projects," "should,"
    "will," "would" or similar expressions and
    the negatives of those terms.
Forward-looking statements involve known and unknown risks,
    uncertainties and other factors that may cause our actual
    results, performance or achievements to be materially different
    from any future results, performance or achievements expressed
    or implied by the forward-looking statements. We discuss these
    risks in greater detail in "Risk Factors" and
    elsewhere in this prospectus. Given these uncertainties, you
    should not place undue reliance on these forward-looking
    statements. Also, forward-looking statements represent our
    management's beliefs and assumptions only as of the date of
    this prospectus. You should read this prospectus and the
    documents that we have filed as exhibits to the registration
    statement, of which this prospectus is a part, completely and
    with the understanding that our actual future results may be
    materially different from what we expect.
Except as required by law, we assume no obligation to update
    these forward-looking statements publicly, or to update the
    reasons actual results could differ materially from those
    anticipated in these forward-looking statements, even if new
    information becomes available in the future.
This prospectus also contains estimates and other information
    concerning our industry, including market opportunity, size and
    growth rates, that are based on industry and government
    publications, reports, surveys and forecasts, including those
    generated by the United States Census Bureau and the National
    Multi Housing Council, and on assumptions that we have made that
    are based on that data, our review of the purchasing patterns of
    our existing customers with respect to our current on demand
    software solutions, the on demand software solutions currently
    utilized by our existing customers, the number of units our
    customers manage with these solutions and customer demand for
    our solutions. This information involves a number of assumptions
    and limitations, and you are cautioned not to give undue weight
    to these estimates. With respect to information contained in
    industry and government publications, surveys and forecasts, we
    have assessed the information in the publications and found it
    to be reasonable and believe the publications are reliable, but
    we have not independently verified their data and cannot
    guarantee its accuracy or completeness. While we believe the
    market opportunity and market size information included in this
    prospectus is based on reasonable assumptions, such information
    is inherently imprecise. In addition, projections, assumptions
    and estimates of the future performance of the industry in which
    we operate and the markets we serve are necessarily subject to a
    high degree of uncertainty and risk, including those described
    in "Risk Factors."
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Table of Contents
USE OF
    PROCEEDS
We estimate that the net proceeds from our sale
    of          shares
    of common stock in this offering at an assumed initial public
    offering price of $    per share, the midpoint of
    the price range set forth on the front cover of this prospectus,
    after deducting estimated underwriting discounts and commissions
    and estimated offering expenses, will be approximately
    $    million. A $1.00 increase (decrease) in
    the assumed initial public offering price of $   
    per share would increase (decrease) our net proceeds to us from
    this offering by approximately $    million,
    assuming the number of shares offered by us, as set forth on the
    cover page of this prospectus, remains the same and after
    deducting estimated underwriting discounts and commissions and
    estimated offering expenses that we expect to pay. We will not
    receive any proceeds from the sale of shares of our common stock
    by the selling stockholders.
We intend to use the net proceeds from this offering to pay
    accumulated and unpaid dividends on our outstanding shares of
    Series A, Series A1 and Series B convertible
    preferred stock that have accrued at a rate of 8% per annum of
    the original issue price of each such share of preferred stock,
    compounded quarterly, which amounted to
    $       million as
    of                  ,
    2010, and to repay approximately $18.2 million of our
    indebtedness outstanding as of December 31, 2009.
The outstanding indebtedness under our unsecured subordinated
    promissory notes held by certain holders of our preferred stock
    has a stated maturity of the earlier of either October 1,
    2013 for notes issued December 31, 2008 or April 1,
    2014 for notes issued April 23, 2010, immediately prior to
    this offering or immediately prior to our acquisition by another
    person or the sale of all or substantially all of our assets. At
    December 31, 2009, we had $8.2 million of outstanding
    indebtedness under the unsecured subordinated promissory notes
    and on April 23, 2010, we issued additional unsecured
    promissory notes having an aggregate principal amount of
    approximately $0.4 million. These outstanding amounts bear
    interest at a per annum rate equal to 8.0%. Pursuant to the
    terms of our unsecured subordinated promissory notes, we will be
    required to repay the outstanding principal amount and all
    accrued and unpaid interest under our unsecured subordinated
    promissory notes from the net proceeds from this offering. We
    expect this repayment to be approximately
    $      million.
The outstanding indebtedness under our secured promissory notes
    held by HV Capital Investors, L.L.C. has a stated maturity of
    August 1, 2013. At December 31, 2009, we had
    $10.0 million of outstanding indebtedness under two secured
    promissory notes in principal amount of $5.0 million each.
    These outstanding amounts bear interest at a per annum rate
    equal to 13.75%, payable quarterly in arrears. We intend to use
    net proceeds of this offering to repay all indebtedness
    outstanding under one or both of our secured promissory notes.
    We expect this repayment to be approximately
    $     million.
We currently do not intend to prepay with the proceeds from this
    offering any additional outstanding indebtedness.
We intend to use our remaining net proceeds from this offering
    for working capital and general corporate purposes. We may also
    use a portion of the net proceeds received by us from this
    offering for the future acquisition of, or investment in,
    businesses, products or technologies that enhance or add new
    services or additional functionality to our solutions, further
    solidify our market position or allow us to offer complementary
    products, services or technologies which we believe will further
    enhance our competitive position. Accordingly, our management
    will have broad discretion in the application of these proceeds
    and investors will be relying on the judgment of our management
    regarding their application.
Pending use of the proceeds from this offering, we intend to
    invest the remaining proceeds in short-term, interest-bearing
    investment grade securities.
DIVIDEND
    POLICY
We do not expect to pay dividends on our common stock for the
    foreseeable future. Instead, we anticipate that all of our
    earnings will be used for the operation and growth of our
    business. Any future determination to declare cash dividends
    would be subject to the discretion of our board of directors and
    would depend upon
36
Table of Contents
various factors, including our results of operations, financial
    condition and liquidity requirements, restrictions that may be
    imposed by applicable law and our contracts and other factors
    deemed relevant by our board of directors. In addition, the
    terms of our credit facilities currently restrict our ability to
    pay dividends.
37
Table of Contents
CAPITALIZATION
The following table sets forth our consolidated cash and cash
    equivalents and capitalization as of December 31, 2009 on:
•
an actual basis;
•
a pro forma basis to reflect (i)
    the      -for-      
    reverse stock split of our common stock and convertible
    preferred stock to be effected prior to the completion of this
    offering and (ii) the conversion of all outstanding shares of
    our convertible preferred stock into 58,087,500 shares of
    our common stock upon the closing of this offering; and
•
a pro forma as adjusted basis to reflect (i) our receipt of
    the net proceeds from our sale of shares of common stock in this
    offering at an assumed initial public offering price of
    $    per share, the midpoint of the range set
    forth on the front cover of this prospectus, after deducting
    estimated underwriting discounts and commissions and estimated
    offering expenses and (ii) the application of the net
    proceeds from this offering as described under "Use of
    Proceeds."
The information below is illustrative only and our
    capitalization following the completion of this offering will be
    adjusted based on the actual initial public offering price and
    other terms of this offering determined at pricing. You should
    read this table in conjunction with "Selected Consolidated
    Financial Data" and "Management's Discussion and
    Analysis of Financial Condition and Results of Operations"
    and our consolidated financial statements and related notes
    included elsewhere in this prospectus.
As of December 31, 2009
Pro Forma
Actual
Pro Forma
As Adjusted
(unaudited)
(unaudited)
(in thousands)
Cash and cash equivalents
$
4,427
$
$
Revolving credit facility
—
Current and long
    term-debt
(1)
$
53,990
Convertible preferred stock:
Redeemable convertible preferred stock Series A and A1,
    $0.001 par value:
51,812,500 shares authorized, issued and outstanding,
    actual;                   shares
    authorized, no shares issued or outstanding, pro forma; no
    shares authorized, issued and outstanding, pro forma as adjusted
51,786
Redeemable convertible preferred stock Series B,
    $0.001 par value:
3,250,000 shares authorized, issued and outstanding,
    actual;                   shares
    authorized, no shares issued or outstanding, pro forma; no
    shares authorized, issued and outstanding, pro forma as adjusted
6,491
Redeemable convertible preferred stock Series C,
    $0.001 par value:
3,025,000 authorized, issued and outstanding,
    actual;                   shares
    authorized, no shares issued or outstanding, pro forma; no
    shares authorized issued and outstanding, pro forma as adjusted
13,555
Total redeemable convertible preferred stock
$
71,832
$
$
(1)
Includes capital lease obligations.
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Table of Contents
As of December 31, 2009
Pro Forma
Actual
Pro Forma
As Adjusted
(unaudited)
(unaudited)
(in thousands)
Stockholders' (deficit) equity:
Common stock, $0.001 par value per share
    135,000,000 shares authorized; 53,334,684 issued and
    52,921,608 outstanding,
    actual;          shares
    authorized,          issued
    and outstanding, pro
    forma;          shares
    authorized, issued and outstanding, pro forma as adjusted
$
53
Preferred stock, $0.001 par value; no shares authorized,
    issued or outstanding, actual or pro
    forma;          shares
    authorized, no shares issued or outstanding, pro forma as
    adjusted
Additional paid in capital
24,206
Treasury stock
(938
)
Accumulated deficit
(89,797
)
Total stockholders' (deficit) equity
(66,476
)
Total capitalization
$
59,346
$
$
The number of pro forma and pro forma as adjusted shares of
    common stock shown as issued and outstanding in the table are
    based on the number of shares of our common stock outstanding as
    of December 31, 2009 and excludes:
•
15,707,456 shares of common stock issuable upon the
    exercise of options outstanding as of December 31, 2009
    under our 1998 Stock Incentive Plan, with a weighted average
    exercise price of $2.16 per share;
•
150,000 shares of common stock issuable upon exercise of
    options outstanding as of December 31, 2009 issued to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.00 per share;
•
1,721,000 shares of common stock issuable upon exercise of
    options granted in the quarter ended March 31, 2010 under
    our 1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
•
120,000 shares of common stock issuable upon exercise of
    options granted in the quarter ended March 31, 2010 to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share.
•
shares
    of common stock reserved for future issuance under our 2010
    Equity Incentive Plan, which will become effective in connection
    with this offering (including 732,285 shares of common
    stock reserved, as of December 31, 2009, for future
    issuance under our 1998 Stock Incentive Plan, which shares will
    be added to the shares reserved under our 2010 Equity Incentive
    Plan, upon its effectiveness); and
•
25,000 shares of common stock issuable upon the exercise of
    warrants outstanding as of December 31, 2009, with a
    weighted average exercise price of $1.00 per share.
A $1.00 increase or decrease in the assumed initial public
    offering price would result in an approximately
    $    million decrease or increase in each of
    pro forma as adjusted cash and cash equivalents, additional
    paid-in capital, total stockholders' (deficit) equity and
    total capitalization.
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Table of Contents
DILUTION
As of December 31, 2009, our pro forma net tangible book
    value (deficit) was approximately
    $(    ) million, or
    $(    ) per share of common stock. Our pro
    forma net tangible book value (deficit) per share represents the
    amount of our total tangible assets less our liabilities,
    divided by the shares of common stock outstanding at
    December 31, 2009 after giving effect to
    the      -for-      
    reverse stock split of our common stock and convertible
    preferred stock to be effected prior to the completion of this
    offering and the conversion of all outstanding shares of our
    convertible preferred stock into 58,087,500 shares of
    common stock effective upon the completion of this offering. Our
    pro forma as adjusted net tangible book value at
    December 31, 2009 would have been
    $    million, or $    per
    share of common stock after giving effect to our sale
    of          shares
    of common stock in this offering at an assumed initial public
    offering price of $    per share, the midpoint of
    the price range set forth on the front cover of this prospectus.
    Our pro forma as adjusted net tangible book value also assumes
    the deduction of (i) estimated underwriting discounts and
    commissions and offering expenses, (ii) the application of
    a portion of the proceeds of this offering to pay accumulated
    and unpaid dividends on our outstanding shares of Series A,
    Series A1 and Series B convertible preferred stock
    that have accrued at a rate of 8%, per annum of the original
    issue price of each such share of preferred stock, compounded
    quarterly, which amounted to
    $       million as
    of                  ,
    2010, and (iii) the application of a portion of the
    proceeds of this offering to repay approximately
    $18.2 million of our indebtedness outstanding as of
    December 31, 2009.
This represents an immediate increase in net tangible book value
    of $    per share to existing stockholders and an
    immediate dilution in net tangible book value of
    $    per share to purchasers of common stock in
    this offering.
The following table illustrates this dilution:
Assumed initial offering price per share
$
Pro forma net tangible book value per share as of
    December 31, 2009
$
(
)
Increase per share attributable to this offering
Pro forma as adjusted net tangible book value per share after
    this offering
Net tangible book value dilution per share to new investors in
    this offering
$
If all our outstanding options and warrants had been exercised,
    our pro forma net tangible book value (deficit) as of
    December 31, 2009 would have been
    $(    ) million, or
    $(    ) per share, and the pro forma as
    adjusted net tangible book value after this offering would have
    been $    million, or $   
    per share, causing dilution to new investors of
    $       per share.
The following table summarizes, on a pro forma as adjusted basis
    as of December 31, 2009, the total number of shares of
    common stock purchased from us, the total consideration paid to
    us and the average price per share paid to us by existing
    stockholders and by new investors purchasing shares in this
    offering at the initial public offering price of
    $      , the midpoint of the price
    range set forth on the front cover of this prospectus, before
    deducting estimated underwriting discounts and commissions and
    estimated offering expenses:
Shares Purchased
Total
Average Price Per
Number
Percent
Amount
Percent
Share
Existing stockholders
111,009,108
%
$
%
$
New investors
Totals
100.0
%
$
$
100.0
%
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Table of Contents
The calculations in the foregoing table are based on
    111,009,108 shares of our common stock as of
    December 31, 2009 and exclude:
•
15,707,456 shares of common stock issuable upon the
    exercise of options outstanding as of December 31, 2009
    under our 1998 Stock Incentive Plan, with a weighted average
    exercise price of $2.16 per share;
•
150,000 shares of common stock issuable upon exercise of
    options outstanding as of December 31, 2009 issued to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.00 per share;
•
1,721,000 shares of common stock issuable upon exercise of
    options granted in the quarter ended March 31, 2010 under
    our 1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share;
•
120,000 shares of common stock issuable upon exercise of
    options granted in the quarter ended March 31, 2010 to
    directors pursuant to stock option agreements outside of our
    1998 Stock Incentive Plan, with a weighted average exercise
    price of $3.75 per share.
•
shares
    of common stock reserved for future issuance under our 2010
    Equity Incentive Plan, which will become effective in connection
    with this offering (including 732,285 shares of common
    stock reserved, as of December 31, 2009, for future
    issuance under our 1998 Stock Incentive Plan, which shares will
    be added to the shares reserved under our 2010 Equity Incentive
    Plan, upon its effectiveness); and
•
25,000 shares of common stock issuable upon the exercise of
    warrants outstanding as of December 31, 2009, with a
    weighted average exercise price of $1.00 per share.
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Table of Contents
SELECTED
    CONSOLIDATED FINANCIAL DATA
We have derived the consolidated statements of operations data
    for the years ended December 31, 2007, 2008 and 2009 and
    the consolidated balance sheet data as of December 31, 2008 and
    2009 from our audited consolidated financial statements, which
    have been audited by Ernst & Young LLP, independent
    registered public accounting firm, and are included elsewhere in
    this prospectus. We have derived the consolidated statement of
    operations data for the years ended December 31, 2005 and
    2006 and the consolidated balance sheet data as of
    December 31, 2005, 2006 and 2007 from our unaudited
    consolidated financial statements that are not included in this
    prospectus. You should read the following selected consolidated
    financial data in conjunction with our consolidated financial
    statements and related notes, the information in
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations" and the other
    financial information included elsewhere in this prospectus. Our
    historical results are not necessarily indicative of our future
    results.
Year Ended December 31,
2005
2006
(unaudited)
(unaudited)
2007
2008
2009
(in thousands, except per share data)
Consolidated Statements of Operations Data:
Revenue:
On demand
$
21,049
$
36,525
$
62,592
$
95,192
$
128,377
On premise
17,277
15,183
11,560
7,582
3,860
Professional and other
4,801
6,937
9,429
9,794
8,665
Total revenue
43,127
58,645
83,581
112,568
140,902
Cost of revenue
29,168
29,596
35,703
46,058
58,513
Gross profit
13,959
29,049
47,878
66,510
82,389
Operating expense:
Product development
15,075
16,959
21,708
28,806
27,446
Sales and marketing
7,142
10,487
18,047
23,923
27,804
General and administrative
5,782
6,267
9,756
14,135
20,210
Total operating expense
27,999
33,713
49,511
66,864
75,460
Operating (loss) income
(14,040
)
(4,664
)
(1,633
)
(354
)
6,929
Interest expense, net
(381
)
(508
)
(1,510
)
(2,152
)
(4,528
)
(Loss) income before taxes
(14,421
)
(5,172
)
(3,143
)
(2,506
)
2,401
Income tax expense (benefit)
—
—
—
703
(26,028
)
Net (loss) income
$
(14,421
)
$
(5,172
)
$
(3,143
)
$
(3,209
)
$
28,429
Net (loss) income attributable to common stockholders:
Basic
$
(19,426
)
$
(10,590
)
$
(9,143
)
$
(10,658
)
$
10,757
Diluted
$
(19,426
)
$
(10,590
)
$
(9,143
)
$
(10,658
)
$
10,757
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Table of Contents
Year Ended December 31,
2005
2006
(unaudited)
(unaudited)
2007
2008
2009
(in thousands, except per share data)
Net (loss) income per share attributable to common stockholders:
Basic
$
(1.02
)
$
(0.53
)
$
(0.45
)
$
(0.38
)
$
0.22
Diluted
$
(1.02
)
$
(0.53
)
$
(0.45
)
$
(0.38
)
$
0.21
Weighted average number of shares used in computing net (loss)
    income per share attributable to common stockholders:
Basic
19,087
20,021
20,446
27,773
47,869
Diluted
19,087
20,021
20,446
27,773
51,025
Pro forma net income per share attributable to common
    stockholders
    (unaudited)
(1)
:
Basic
—
—
—
—
$
0.27
Diluted
—
—
—
—
$
0.26
Pro forma weighted average shares used in computing net income
    per share attributable to common stockholders
    (unaudited)
(2)
:
Basic
—
—
—
—
105,957
Diluted
—
—
—
—
109,113
As of December 31,
2005
2006
2007
(unaudited)
(unaudited)
(unaudited)
2008
2009
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash
    equivalents
(3)
$
5,341
$
2,493
$
2,731
$
4,248
$
4,427
Working capital, excluding deferred revenue
9,505
4,636
9,224
12,126
12,929
Total assets
27,292
32,511
59,518
102,340
142,113
Current and long-term
    debt
(4)
3,849
6,682
23,809
48,943
53,990
Total liabilities
49,275
59,485
87,954
129,622
136,757
Preferred stock
66,514
72,300
78,534
71,675
71,832
Total stockholders' deficit
(88,497
)
(99,274
)
(106,970
)
(98,957
)
(66,476
)
Other Financial Data:
Adjusted
    EBITDA
(5)
$
(8,162
)
$
(692
)
$
5,984
$
13,064
$
25,593
Operating cash flow
(2,614
)
969
4,441
7,962
24,758
Capital expenditures
3,970
5,597
7,122
10,263
9,509
As of December 31,
2005
2006
2007
2008
2009
Selected Operating Data:
Number of on demand customers at period end
1,025
1,469
2,199
2,669
5,032
Number of on demand units at period end (in thousands)
1,181
1,708
2,800
3,833
4,551
Total number of employees at period end
478
532
654
922
1,141
(1)
Pro forma net income per share represents net income divided by
    the pro forma weighted average shares outstanding as though the
    conversion of our redeemable convertible preferred stock into
    common stock occurred on the original issuance dates.
43
Table of Contents
(2)
Pro forma weighted average shares outstanding reflects the
    conversion of our redeemable convertible preferred stock (using
    the if-converted method) into common stock as though the
    conversion had occurred on the original dates of issuance.
(3)
Excludes restricted cash.
(4)
Includes capital lease obligations.
(5)
We define Adjusted EBITDA as net (loss) income plus depreciation
    and asset impairment, amortization of intangible assets,
    interest expense, net, income tax expense (benefit), stock-based
    compensation expense and acquisition-related expense.
We believe that the use of Adjusted EBITDA is useful to
    investors and other users of our financial statements in
    evaluating our operating performance because it provides them
    with an additional tool to compare business performance across
    companies and across periods. We believe that:
•
Adjusted EBITDA provides investors and other users of our
    financial information consistency and comparability with our
    past financial performance, facilitates period-to-period
    comparisons of operations and facilitates comparisons with our
    peer companies, many of which use similar non-GAAP financial
    measures to supplement their GAAP results; and
•
it is useful to exclude certain non-cash charges, such as
    depreciation and asset impairment, amortization of intangible
    assets and stock-based compensation and non-core operational
    charges, such as acquisition-related expense, from Adjusted
    EBITDA because the amount of such expenses in any specific
    period may not directly correlate to the underlying performance
    of our business operations and these expenses can vary
    significantly between periods as a result of new acquisitions,
    full amortization of previously acquired tangible and intangible
    assets or the timing of new stock-based awards, as the case may
    be.
We use Adjusted EBITDA in conjunction with traditional GAAP
    operating performance measures as part of our overall assessment
    of our performance, for planning purposes, including the
    preparation of our annual operating budget, to evaluate the
    effectiveness of our business strategies and to communicate with
    our board of directors concerning our financial performance.
We do not place undue reliance on Adjusted EBITDA as our only
    measure of operating performance. Adjusted EBITDA should not be
    considered as a substitute for other measures of liquidity or
    financial performance reported in accordance with GAAP. There
    are limitations to using non-GAAP financial measures, including
    that other companies may calculate these measures differently
    than we do, that they do not reflect our capital expenditures or
    future requirements for capital expenditures and that they do
    not reflect changes in, or cash requirements for, our working
    capital. We compensate for the inherent limitations associated
    with using Adjusted EBITDA measures through disclosure of these
    limitations, presentation of our financial statements in
    accordance with GAAP and reconciliation of Adjusted EBITDA to
    the most directly comparable GAAP measure, net (loss) income.
The following table presents a reconciliation of net (loss)
    income to Adjusted EBITDA:
Year Ended December 31,
2005
2006
2007
2008
2009
(in thousands)
Net (loss) income
$
(14,421
)
$
(5,172
)
$
(3,143
)
$
(3,209
)
$
28,429
Depreciation and asset impairment
2,010
3,269
4,854
9,847
9,231
Amortization of intangible assets
3,868
670
2,273
2,095
5,784
Interest expense, net
381
508
1,510
2,152
4,528
Income tax expense (benefit)
—
—
—
703
(26,028
)
Stock-based compensation expense
—
33
490
1,476
2,805
Acquisition-related expense
—
—
—
—
844
Adjusted EBITDA
$
(8,162
)
$
(692
)
$
5,984
$
13,064
$
25,593
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The following table presents stock-based compensation included
    in each expense category:
Year Ended December 31,
2005
2006
2007
2008
2009
(in thousands)
Cost of sales
—
—
$
48
$
104
$
367
Product development
—
—
251
727
1,175
Sales and marketing
—
—
110
277
498
General and administrative
—
$
33
81
368
765
Total stock-based compensation expense
—
$
33
$
490
$
1,476
$
2,805
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MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial
    condition and results of operations should be read together with
    "Selected Consolidated Financial Data" and our
    financial statements and accompanying notes included elsewhere
    in this prospectus. This discussion contains forward-looking
    statements, based on current expectations and related to our
    plans, estimates, beliefs and anticipated future financial
    performance. These statements involve risks and uncertainties
    and our actual results may differ materially from those
    anticipated in these forward-looking statements as a result of
    many factors, including those set forth under "Risk
    Factors," "Special Note Regarding Forward-Looking
    Statements and Industry Data" and elsewhere in this
    prospectus.
Overview
We are a leading provider of on demand software solutions for
    the rental housing industry. Our broad range of property
    management solutions enable owners and managers of single-family
    and a wide variety of multi-family rental property types to
    manage their marketing, pricing, screening, leasing, accounting,
    purchasing and other property operations. We deliver our on
    demand software solutions via the Internet through an integrated
    software platform that provides a single point of access and a
    shared repository of prospect, resident and property data.
We derive a substantial majority of our revenue from sales of
    our on demand software solutions.  We also derive revenue from
    our professional and other services.  A small percentage of our
    revenue is derived from sales of our on premise software
    solutions to our existing on premise customers. Our on demand
    software solutions are sold pursuant to subscription license
    agreements, and our on premise software solutions are sold
    pursuant to term or perpetual license agreements and associated
    maintenance agreements. Typically, we price our solutions based
    primarily on the number of units the customer manages with our
    solutions. For our insurance and transaction-based solutions, we
    price based on a fixed commission rate of earned premiums or a
    fixed rate per transaction, respectively. We sell our solutions
    through our direct sales organization and derive substantially
    all of our revenue from sales in the United States. Our revenue
    has increased from $83.6 million in 2007 to
    $140.9 million in 2009. This increase in revenue has
    primarily been driven by increased sales of our on demand
    software solutions, a substantial amount of which has been
    derived from purchases of additional on demand software
    solutions by our existing customers. In 2009, our on demand
    revenue represented 91.1% of our total revenue.
While the adoption of on demand software solutions in the rental
    housing industry is growing rapidly, it remains at a relatively
    early stage of development. Additionally, there is a low level
    of penetration of our on demand software solutions in our
    existing customer base. We believe these factors present us with
    significant opportunities to generate revenue through sales of
    additional on demand software solutions. Our existing and
    potential customers base their decisions to invest in our
    solutions on a number of factors, including general economic
    conditions. Accordingly, macroeconomic conditions negatively
    impacted our business in 2009 and may continue to negatively
    impact our business.
Our company was formed in 1998 to acquire Rent Roll, Inc., which
    marketed and sold on premise property management systems for the
    conventional and affordable multi-family rental housing markets.
    In June 2001, we released OneSite, our first on demand property
    management system. Since 2002, we have expanded our on demand
    software solutions to include a number of software-enabled
    value-added services that provide complementary sales and
    marketing, asset optimization, risk mitigation, billing and
    utility management and spend management capabilities. In
    connection with this expansion, we have allocated greater
    resources to the development and infrastructure needs of
    developing and increasing sales of our suite of on demand
    software solutions. In addition, since July 2002, we have
    completed 13 acquisitions of complementary technologies and
    businesses (including our recent February 2010 acquisition) to
    supplement our internal product development and sales and
    marketing efforts, enabling us to expand the scope of our
    solutions, the types of rental housing properties served by our
    solutions and our customer base.
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Key
    Business Metrics
In addition to traditional financial measures, we monitor our
    operating performance using a number of financially and
    non-financially derived metrics that are not included in our
    consolidated financial statements. We monitor the key
    performance indicators reflected in the following table:
Year Ended December 31,
2007
2008
2009
(in thousands, except dollar per unit data)
Revenue:
Total revenue
$
83,581
$
112,568
$
140,902
On demand revenue
$
62,592
$
95,192
$
128,377
On demand revenue as a percentage of total revenue
74.9%
84.6%
91.1%
Ending on demand units
2,800
3,833
4,551
Average on demand units
2,293
3,138
4,128
On demand revenue per average on demand unit
$
27.30
$
30.34
$
31.10
Adjusted EBITDA
$
5,984
$
13,064
$
25,593
Adjusted EBITDA as a percentage of total revenue
7.2%
11.6%
18.2%
On demand revenue.
This metric represents the
    license and subscription fees for accessing our on demand
    software solutions, typically licensed for one year terms,
    commission income from sales of renter's insurance policies
    and transaction fees for certain of our on demand software
    solutions. We consider on demand revenue to be a key business
    metric because we believe the market for our on demand software
    solutions represents the largest growth opportunity for our
    business.
On demand revenue as a percentage of total
    revenue.
This metric represents on demand revenue
    for the period presented divided by total revenue for the same
    period. We use on demand revenue as a percentage of total
    revenue to measure our success in executing our strategy to
    increase the penetration of our on demand software solutions and
    expand our recurring revenue streams attributable to these
    solutions. We expect our on demand revenue to remain a
    significant percentage of our total revenue although the actual
    percentage may vary from period to period due to a number of
    factors, including the timing of acquisitions and professional
    and other revenue.
Ending on demand units
.  This metric represents
    the number of rental housing units managed by our customers with
    one or more of our on demand software solutions at the end of
    the period. We use ending on demand units to measure the success
    of our strategy of increasing the number of rental housing units
    managed with our on demand software solutions. Property unit
    counts are provided to us by our customers as new sales orders
    are processed. Property unit counts may be adjusted periodically
    as information related to our customers' properties is
    updated or supplemented, which could result in adjusting the
    number of units previously reported. We expect ending on demand
    units will continue to increase in 2010 and 2011.
On demand revenue per average on demand
    unit
.  This metric represents on demand revenue
    for the period presented divided by average on demand units for
    the same period. We calculate average on demand units as the
    average of the beginning and ending on demand units for each
    quarter in the period presented. We monitor this metric to
    measure our success in increasing the number of on demand
    software solutions utilized by our customers to manage their
    rental housing units, our overall revenue and profitability.
Adjusted EBITDA
.  We define this metric as net
    (loss) income plus depreciation and asset impairment;
    amortization of intangible assets; interest expense, net; income
    tax expense (benefit); stock-based compensation expense and
    acquisition-related expense. We believe that the use of Adjusted
    EBITDA is useful in evaluating our operating performance because
    it excludes certain non-cash expenses, including depreciation,
    amortization and stock-based compensation. Adjusted EBITDA is
    not determined in accordance with accounting principles
    generally accepted in the United States, or GAAP, and should not
    be considered as a substitute for or superior to financial
    measures determined in accordance with GAAP. For further
    discussion regarding Adjusted EBITDA and a reconciliation of
    Adjusted EBITDA to net income, refer to the table below. Our
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Adjusted EBITDA grew from approximately $6.0 million in
    2007 to approximately $25.6 million in 2009, as a result of
    our efforts to expand market share and increase revenue.
The following provides a reconciliation of net (loss) income to
    Adjusted EBITDA:
Year Ended December 31,
2007
2008
2009
(in thousands)
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
Depreciation and asset impairment
4,854
9,847
9,231
Amortization of intangible assets
2,273
2,095
5,784
Interest expense, net
1,510
2,152
4,528
Income tax expense (benefit)
—
703
(26,028
)
Stock-based compensation expense
490
1,476
2,805
Acquisition-related expense
—
—
844
Adjusted EBITDA
$
5,984
$
13,064
$
25,593
Key
    Components of our Results of Operations
Revenue
We derive our revenue from three primary sources: our on demand
    software solutions; our on premise software solutions; and our
    professional and other services. In 2007, 2008 and 2009, we
    generated revenue of $83.6 million, $112.6 million and
    $140.9 million, respectively.
On Demand
    Revenue
Revenue from our on demand software solutions is comprised of
    license and subscription fees for accessing our on demand
    software solutions, typically licensed for one year terms,
    commission income from sales of renter's insurance
    policies, and transaction fees for certain on demand software
    solutions, such as payment processing, spend management and
    billing services. Typically, we price our on demand software
    solutions based primarily on the number of units the customer
    manages with our solutions. For our insurance and
transaction-based
solutions, we price based on a fixed commission rate of earned
    premiums or a fixed rate per transaction, respectively.
In 2007, 2008 and 2009, revenue from our on demand software
    solutions was approximately $62.6 million,
    $95.2 million and $128.4 million, respectively,
    representing approximately 74.9%, 84.6% and 91.1% of our total
    revenue for the same years. Revenue from our on demand software
    solutions has continued to increase in absolute dollars and as a
    percentage of our total revenue as we have ceased actively
    marketing our on premise software solutions to new customers and
    as many of our existing on premise customers have transitioned
    to our on demand software solutions. We expect our on demand
    revenue to continue to increase in absolute dollars and as a
    percentage of revenue in 2010, although the actual percentage of
    revenue may vary from period to period due to a number of
    factors, including the impact of acquisitions and revenue
    derived from our professional and other services related to our
    on demand software solutions.
On
    Premise Revenue
Our on premise software solutions are distributed to our
    customers and maintained locally on the customers'
    hardware. Revenue from our on premise software solutions is
    comprised of license fees under term and perpetual license
    agreements. Typically, we have licensed our on premise software
    solutions pursuant to term license agreements with an initial
    term of one year that include maintenance and support. Customers
    can renew their term license agreement for additional one-year
    terms at renewal price levels. In February 2010, we completed a
    strategic acquisition of assets that included on premise
    software solutions that were historically marketed and sold
    pursuant to perpetual license agreements and related maintenance
    agreements.
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We no longer actively market our on premise software solutions
    to new customers, and only license our on premise software
    solutions to a small portion of our existing on premise
    customers as they expand their portfolio of rental housing
    properties. While we intend to continue to support our recently
    acquired on premise software solutions, we expect that many of
    the customers who license these solutions will transition to our
    on demand software solutions over time.
In 2007, 2008 and 2009, revenue from our on premise software
    solutions was approximately $11.6 million,
    $7.6 million and $3.9 million, respectively,
    representing approximately 13.8%, 6.7% and 2.7% of our total
    revenue for the same years, respectively. Revenue from our on
    premise software solutions has continued to decrease in absolute
    dollars and as a percentage of our total revenue as we have
    ceased actively marketing our on premise software solutions to
    new customers and as many of our existing on premise customers
    have transitioned to our on demand software solutions. We expect
    our on premise revenue to decrease over time in absolute dollars
    and as a percentage of our total revenue; however, our February
    2010 acquisition could result in a
near-term
increase in on premise revenue in terms of both absolute dollars
    and as a percentage of our total revenue until we transition
    these customers to our on demand software solutions. In
    addition, the actual percentage of revenue may vary from period
    to period due to a number of factors, including the impact of
    our recent and potential future acquisition of on premise
    software solutions.
Professional
    and Other Revenue
Revenue from professional and other services consists of
    consulting and implementation services, training and other
    ancillary services. Professional and other services engagements
    are typically time and material.
We complement our solutions with professional and other
    services. In 2007, 2008 and 2009, revenue from professional and
    other services was approximately $9.4 million,
    $9.8 million and $8.7 million, respectively,
    representing approximately 11.3%, 8.7% and 6.2% of our total
    revenue for the same years, respectively. We expect professional
    and other services will represent 10.0% or less of our total
    revenue in 2010 consistent with 2008 and 2009 performance.
Cost
    of Revenue
Cost of revenue consists primarily of personnel costs related to
    our operations, support services, training and implementation
    services, expenses related to the operation of our data center
    and fees paid to third-party service providers. Personnel costs
    include salaries, bonuses, stock-based compensation and employee
    benefits. Cost of revenue also includes an allocation of
    facilities costs, overhead costs and depreciation, as well as
    amortization of acquired technology related to strategic
    acquisitions and amortization of capitalized development costs.
    We allocate facilities costs, overhead costs and depreciation
    based on headcount. We expect our cost of revenue in 2010 to
    increase in absolute dollars.
Operating
    Expenses
We classify our operating expenses into three categories:
    product development, sales and marketing, and general and
    administrative. Our operating expenses primarily consist of
    personnel costs, which includes compensation, employee benefits
    and payroll taxes, costs for third-party contracted development,
    marketing, legal, accounting and consulting services and other
    professional service fees. Personnel costs for each category of
    operating expenses include salaries, bonuses, stock-based
    compensation and employee benefits for employees in that
    category. In addition, our operating expenses include an
    allocation of our facilities costs, overhead costs and
    depreciation based on headcount for that category, as well as
    amortization of purchased intangible assets resulting from our
    acquisitions.
Our operating expenses increased in absolute dollars in each of
    2008 and 2009 as we have built infrastructure and added
    employees across all categories in order to accelerate and
    support our growth and to expand our markets. We expect our
    operating expenses in 2010 to continue to increase in absolute
    dollars as compared to 2009, as the capacity we have added in
    prior years is more fully utilized and we continue to create
    operating leverage.
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Product development.
Product development
    expense consists primarily of personnel costs for our product
    development employees and executives and fees to contract
    development vendors. Our product development efforts are focused
    primarily on increasing the functionality and enhancing the ease
    of use of our on demand software solutions and expanding our
    suite of on demand software solutions. In 2008, we established a
    product development and service center in Hyderabad, India to
    take advantage of strong technical talent at lower personnel
    costs compared to the United States. We expect our product
    development expenses in 2010 to increase in absolute dollars.
Sales and marketing.
Sales and marketing
    expense consists primarily of personnel costs for our sales,
    marketing and business development employees and executives,
    travel and entertainment and marketing programs. Marketing
    programs consist of advertising, tradeshows, user conferences,
    public relations, industry sponsorships and affiliations and
    product marketing. In addition, sales and marketing expense
    includes amortization of certain purchased intangible assets,
    including customer relationships and key vendor and supplier
    relationships obtained in connection with our acquisitions. We
    expect our sales and marketing expense in 2010 to increase in
    absolute dollars.
General and administrative.
General and
    administrative expense consists of personnel costs for our
    executive, finance and accounting, human resources, management
    information systems and legal personnel, as well as legal,
    accounting and other professional service fees and other
    corporate expenses. We expect our general and administrative
    expense in 2010 to increase in absolute dollars as compared to
    2009 primarily due to the increased costs of operating as a
    public company.
Interest
    Expense, Net
Interest expense, net, consists primarily of interest income and
    interest expense. Interest income represents earnings from our
    cash, cash equivalents and short-term investments. Interest
    expense is associated with our term loan, revolver, secured
    promissory note, promissory note issued to preferred
    stockholders, capital lease obligations and certain
    acquisition-related liabilities. Total amounts outstanding under
    our interest-bearing obligations at December 31, 2007, 2008
    and 2009 include:
Year Ended December 31,
2007
2008
2009
(in thousands)
Term loan
$
9,583
$
12,650
$
33,688
Revolver
8,584
10,000
—
Secured promissory note
—
10,000
10,000
Promissory notes issued to preferred stockholders
—
11,064
8,173
Capital lease obligations
5,642
5,229
2,129
Interesting bearing acquisition-related liabilities
3,455
2,966
2,470
We expect interest expense to decrease in absolute dollars and
    as a percentage of our total revenue in the periods following
    this public offering as we anticipate repaying a portion of our
    outstanding term loan and repaying all of our secured promissory
    note and promissory notes issued to preferred stockholders.
Income
    Taxes
Historically, we have incurred annual operating losses and have
    not benefited from these losses and have only provided for state
    and foreign income taxes. As of December 31, 2009, we had
    net operating loss carry forwards for federal and state income
    tax purposes of approximately $67.2 million. In December
    2009, based on current year income and projected future year
    income, we concluded that it is more likely than not that the
    net deferred tax assets recorded will be realized. As such, we
    deemed it appropriate to decrease this valuation allowance by
    $27.0 million during 2009. If not utilized, our federal net
    operating loss and tax credit carry forwards will begin to
    expire in 2018. While not currently subject to an annual
    limitation, the utilization of these carry forwards may become
    subject to an annual limitation because of provisions in the
    Internal Revenue
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Code that are applicable if we experience an "ownership
    change," which may occur, for example, as a result of this
    offering or other issuances of stock.
Critical
    Accounting Policies
Our consolidated financial statements are prepared in accordance
    with GAAP. In many cases, the accounting treatment of a
    particular transaction is specifically dictated by GAAP and does
    not require management's judgment in its application, while
    in other cases, management's judgment is required in
    selecting among available alternative accounting standards that
    allow different accounting treatment for similar transactions.
    The preparation of our consolidated financial statements and
    related disclosures require us to make estimates, assumptions
    and judgments that affect the reported amount of assets,
    liabilities, revenue, costs and expenses, and related
    disclosures. We base our estimates and assumptions on historical
    experience and other factors that we believe to be reasonable
    under the circumstances. In some instances, we could reasonably
    use different accounting estimates, and in some instances
    results could differ significantly from our estimates. We
    evaluate our estimates and assumptions on an ongoing basis. To
    the extent that there are differences between our estimates and
    actual results, our future financial statement presentation,
    financial condition, results of operations and cash flows will
    be affected.
We believe that the assumptions and estimates associated with
    revenue recognition, accounts receivable, business combinations,
    goodwill and other intangible assets with indefinite lives,
    impairment of long-lived assets, intangible assets, stock-based
    compensation, income taxes and capitalized product development
    costs have the greatest potential impact on our consolidated
    financial statements. Therefore, we believe the accounting
    policies discussed below are critical to understanding our
    historical and future performance, as these policies relate to
    the more significant areas involving our management's
    judgments, assumptions and estimates.
Revenue
    Recognition
We derive our revenue from three primary sources: our on demand
    software solutions; our on premise software solutions; and
    professional and other services. We commence revenue recognition
    when all of the following conditions are met:
•
there is persuasive evidence of an arrangement;
•
the solution and/or service has been provided to the customer;
•
the collection of the fees is probable; and
•
the amount of fees to be paid by the customer is fixed or
    determinable.
For multi-element arrangements that include multiple solutions
and/or
services, we allocate arrangement consideration to all
    deliverables that have stand-alone value based on their relative
    selling prices. In such circumstances, we utilize the following
    hierarchy to determine the selling price to be used for
    allocating revenue to deliverables as follows:
•
Vendor specific objective evidence (VSOE), if
    available.
The price at which we sell the element
    in a separate stand-alone transaction;
•
Third-party evidence of selling price (TPE), if VSOE of
    selling price is not available.
Evidence from us
    or other companies of the value of a largely interchangeable
    element in a transaction; and
•
Estimated selling price, if neither VSOE nor TPE of selling
    price is available.
Our best estimate of the
    stand-alone selling price of an element in a transaction.
From time to time, we sell on demand software solutions with
    professional services. In such cases, we allocate arrangement
    consideration based on our estimated selling price of the on
    demand software solution and VSOE of the selling price of the
    professional services.
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On Demand
    Revenue
Our on demand revenue consists of license and subscription fees,
    transaction fees related to certain of our software-enabled
    value-added services and commissions derived from us selling
    certain risk mitigation services.
License and subscription fees are comprised of a charge billed
    at the initial order date and monthly or annual subscription
    fees for accessing our on demand software solutions.
The license fee billed at the initial order date is recognized
    as revenue on a straight-line basis over the longer of the
    contractual term or the period in which the customer is expected
    to benefit, which we consider to be four years. Recognition
    starts once the product has been activated. Revenue from monthly
    and annual subscription fees is recognized on a straight-line
    basis over the access period.
We act as an insurance agent as a part of our risk mitigation
    services. We recognize the commissions related to these services
    ratably over the policy term.
We recognize revenue from transaction fees derived from certain
    of our software-enabled value-added services as the related
    services are performed.
On
    Premise Revenue
Revenue from our on premise software solutions is comprised of
    an annual term license, which includes maintenance and support.
    Customers can renew their annual term license for additional
    one-year terms at renewal price levels. We recognize the annual
    term license on a straight-line basis over the license term.
Professional
    and Other Revenue
Professional and other revenue is recognized as the services are
    rendered for time and material contracts. Training revenues are
    recognized after the services are performed.
Accounts
    Receivable
For several of our solutions, we invoice our customers prior to
    the period in which service is provided. Accounts receivable
    represent trade receivables from customers when we have invoiced
    for software solutions
and/or
services and we have not yet received payment. We present
    accounts receivable net of an allowance for doubtful accounts.
    We maintain an allowance for doubtful accounts for estimated
    losses resulting from the inability of customers to make
    required payments, or the customer cancelling prior to the
    service being rendered. In doing so, we consider the current
    financial condition of the customer, the specific details of the
    customer account, the age of the outstanding balance, the
    current economic environment and historical credit trends. As a
    result of a portion of our allowance being for services not yet
    rendered, a portion of our allowance is charged as an offset to
    deferred revenue, which does not have an effect on the statement
    of operations. Any change in the assumptions used in analyzing a
    specific account receivable might result in an additional
    allowance for doubtful accounts being recognized in the period
    in which the change occurs.
Business
    Combinations
When we acquire businesses, we allocate the total consideration
    to the fair value of tangible assets and liabilities and
    identifiable intangible assets acquired. Any residual purchase
    price is recorded as goodwill. The allocation of the purchase
    price requires management to make significant estimates in
    determining the fair values of assets acquired and liabilities
    assumed, especially with respect to intangible assets. These
    estimates are based on the application of valuation models using
    historical experience and information obtained from the
    management of the acquired companies. These estimates can
    include, but are not limited to, the cash flows that an asset is
    expected to generate in the future, the appropriate weighted
    average cost of capital and the cost savings expected to be
    derived from acquiring an asset. These estimates are inherently
    uncertain and unpredictable. In addition, unanticipated events
    and circumstances may occur which may affect the accuracy or
    validity of these estimates. Beginning in 2009, we began
    including the fair value of contingent consideration
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to be paid within the total consideration allocated to the fair
    value of the assets acquired and the liabilities assumed.
Goodwill
    and Other Intangible Assets with Indefinite Lives
We test goodwill and other intangible assets with indefinite
    lives for impairment on an annual basis in the fourth quarter of
    each year. Additionally, we test goodwill and other intangible
    assets with indefinite lives in the interim if events and
    circumstances indicate that goodwill and other intangible assets
    with indefinite lives may be impaired. The events and
    circumstances that we consider include the significant
    under-performance relative to projected future operating results
    and significant changes in our overall business
and/or
product strategies. We evaluate impairment of goodwill and other
    intangible assets with indefinite lives using a two-step
    process. The first step involves a comparison of the fair value
    of a reporting unit with its carrying amount. If the carrying
    amount of the reporting unit exceeds its fair value, the second
    step of the process involves a comparison of the fair value and
    carrying amount of the goodwill and other intangible assets with
    indefinite lives of that reporting unit. If the carrying amount
    of the goodwill and other intangible assets with indefinite
    lives of a reporting unit exceeds the fair value of that
    goodwill and other intangible assets with indefinite lives, we
    recognize an impairment loss equal to the amount by which the
    carrying amount exceeds the fair market value of the asset. If
    an event occurs that causes us to revise our estimates and
    assumptions used in analyzing the value of our goodwill and
    other intangible assets with indefinite lives, the revision
    could result in a non-cash impairment charge that could have a
    material impact on our financial results.
We recorded goodwill and other intangible assets with indefinite
    lives in conjunction with all seven of our business acquisitions
    completed since the beginning of 2007. We test goodwill for
    impairment based on a single reporting unit. We believe we
    operate in a single reporting unit because our chief operating
    decision maker does not regularly review our operating results
    other than at a consolidated level for purposes of decision
    making regarding resource allocation and operating performance.
Impairment
    of Long-lived Assets
We perform an impairment review of long-lived assets held and
    used whenever events or changes in circumstances indicate that
    the carrying value may not be recoverable. Factors we consider
    important that could trigger an impairment review include, but
    are not limited to, significant under-performance relative to
    projected future operating results, significant changes in the
    manner of our use of the acquired assets or our overall business
and/or
product strategies and significant industry or economic trends.
    When we determine that the carrying value of a long-lived asset
    may not be recoverable based upon the existence of one or more
    of these indicators, we determine the recoverability by
    comparing the carrying amount of the asset to net future
    undiscounted cash flows that the asset is expected to generate.
    We would then recognize an impairment charge equal to the amount
    by which the carrying amount exceeds the fair market value of
    the asset.
Intangible
    Assets
Intangible assets consist of acquired developed product
    technologies, acquired customer relationships, vendor
    relationships, non-competition agreements and trade names. We
    record intangible assets at fair value and amortize those with
    finite lives over the shorter of the contractual life or the
    estimated useful life. We estimate the useful lives of acquired
    developed product technologies and customer relationships based
    on factors that include the planned use of each developed
    product technology and the expected pattern of future cash flows
    to be derived from each developed product technology and
    existing customer relationships. We include amortization of
    acquired developed product technologies in cost of revenue,
    amortization of acquired customer relationships in sales and
    marketing expenses and amortization of vendor relationships and
    non-competition agreements in general and administrative
    expenses in our consolidated statements of operations.
Stock-Based
    Compensation
Prior to January 1, 2006, we accounted for share-based
    awards, including stock options, to employees using the
    intrinsic value method. Under the intrinsic value method,
    compensation expense was measured on
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the date of award as the difference, if any, between the deemed
    fair value of our common stock and the option exercise price,
    multiplied by the number of options granted. The option exercise
    prices and fair value of our common stock are determined by our
    board of directors based on a review of various objective and
    subjective factors. No compensation expense was recorded for
    stock options issued to employees prior to January 1, 2006
    because all options were granted in fixed amounts and with fixed
    exercise prices at least equal to the fair value of our common
    stock at the date of grant.
Effective January 1, 2006, we changed our accounting
    treatment to recognize compensation expense based on the fair
    value of all share-based awards granted, modified, repurchased
    or cancelled on or after that date.
Our stock-based compensation is measured on the grant date based
    on the fair value of the award and is recognized as an expense
    over the requisite service period, which is generally the
    vesting period, on a straight-line basis.
The fair value of share-based awards is calculated through the
    use of option pricing models. These models require subjective
    assumptions regarding future share price volatility and the
    expected life of each option grant.
The fair value of employee stock options granted since
    January 1, 2009 was estimated at the grant date using the
    Black-Scholes option pricing model by applying the following
    weighted average assumptions:
Risk-free interest rates
1.5-4.8
%
Expected option life (in years)
6
Dividend yield
0
%
Expected volatility
50-60
%
At each stock option grant date, we utilized peer group data to
    calculate our expected volatility. Expected volatility was based
    on historical and expected volatility rates of comparable
    publicly traded peers. The expected life of each option grant is
    based on existing employee exercise patterns and our historical
    pre-vested forfeiture experience. The risk-free interest rate
    was based on the treasury yield rate with a maturity
    corresponding to the expected option life assumed at the grant
    date.
Changes to the underlying assumptions may have a significant
    impact on the underlying value of the stock options, which could
    have a material impact on our consolidated financial statements.
We have granted stock options at exercise prices above the fair
    value of our common stock as of the grant date, as determined by
    our compensation committee on a contemporaneous basis. Given the
    absence of any active market for our common stock, the fair
    value of the common stock underlying stock options granted was
    determined by our compensation committee, with input from our
    management. In arriving at these valuations, our compensation
    committee and management also considered contemporaneous
    third-party valuations.
Valuation
    of Common Stock
In 2009 and in the quarter ended March 31, 2010, we granted
    options to purchase shares of our common stock as follows:
Exercise Price
Fair Value
Grant Date
Options Granted
Per Share
Per Share
February 2009
1,437,500
$
3.00
$
2.72
June 2009
571,000
3.00
2.88
September 2009
1,763,000
3.00
2.52
October 2009
225,000
3.00
2.52
November 2009
472,500
3.00
2.52
December 2009
100,000
3.00
2.83
February 2010
1,721,000
3.75
3.37
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Significant
    Factors in Determining Fair Value
For all grant dates in 2009 and 2010, we granted employees
    options at exercise prices greater than the fair value of the
    underlying common stock at the time of grant, as determined by
    our compensation committee on a contemporaneous basis. To
    determine the fair value of our common stock, we consider many
    factors, including:
•
our current and historical operating performance;
•
our expected future operating performance;
•
our financial condition at the grant date;
•
the liquidation rights and other preferences of our preferred
    stock;
•
any recent privately negotiated sales of our securities to
    independent third parties;
•
input from management;
•
the lack of marketability of our common stock;
•
the potential future marketability of our common stock;
•
the business risks inherent in our business and in technology
    companies, generally;
•
the market performance of comparable publicly traded
    companies; and
•
the U.S. and global capital market conditions.
Valuation
    Methodologies Used in Determining Fair Value
In valuing our common stock, we utilize a probability weighted
    expected return method to estimate the value of our common stock
    based upon an analysis of expected future cash flows considering
    possible future liquidity events, as well as the liquidation
    rights and other preferences of our preferred stock. In
    determining the value of our common stock on each grant date in
    2009 and in February 2010, we considered two possible scenarios:
    the completion of an initial public offering, or the IPO
    Scenario, and remaining private, or the Private Scenario. For
    purposes of determining the fair market value of our common
    stock on each grant date in 2009 and February 2010, we estimated
    the probability of the future liquidity event being our initial
    public offering at 75% and remaining a private company at 25%.
In valuing our common stock in the IPO Scenario, we utilize a
    market approach that estimates the fair value of a company by
    applying to that company the market multiples of comparable
    publicly traded companies. Based on the range of these observed
    multiples, we apply judgment in determining an appropriate
    multiple to apply to our metrics in order to derive an
    indication of value. In connection with valuing our common stock
    under the IPO Scenario for grants in February, June and
    September 2009, we determined fair value based on the
    probability of going public in 2009, 2010 or 2011. In connection
    with valuing our common stock under the IPO Scenario for grants
    in December 2009 and February 2010, we determined the
    probability of going public in 2010 or 2011. For each of the
    grants in 2009 and February 2010, we concluded that the market
    value of invested capital to revenue multiple would yield the
    most appropriate indication of value for us based on our
    projections.
In valuing our common stock in the Private Scenario, we apply
    the income and market approaches utilizing a terminal period
    value and a residual revenue growth rate of 5.5% in the terminal
    year based on our expectation of long-term growth. In connection
    with valuing our common stock under the Private Scenario, we
    apply the income approach utilizing discounted cash flows. We
    concluded that this was the best indication of value because,
    beginning in the fourth quarter of 2008, we had moved towards a
    long-term expectation of earnings.
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Table of Contents
Fair
    Value of Stock Option Grants in 2009 and 2010
February 2009.
In connection with our stock
    option grants in February 2009, we considered the factors
    described above, including the continued downturn in the
    U.S. and global capital markets and its impact on our short
    term projected revenue growth and the market value of invested
    capital of comparable publicly traded peers, and a
    contemporaneous valuation report, dated February 27, 2009,
    and utilized the valuation methodologies described above to
    arrive at a fair value of our common stock of $2.72 per share
    and granted options at an exercise price of $3.00 per share.
June 2009.
In connection with our stock option
    grants in June 2009, we considered the factors described above,
    including the slight recovery of the U.S. and global
    capital markets and its impact on our short term projected
    revenue growth and comparable publicly traded peers since the
    grants in February 2009, as well as a contemporaneous valuation
    report, dated June 4, 2009, and utilized the valuation
    methodologies described above to arrive at a fair value of our
    common stock of $2.88 per share and granted options at an
    exercise price of $3.00 per share.
September 2009.
In connection with our stock
    option grants in September 2009, we considered the factors
    described above, including the continued recovery of the
    U.S. and global capital markets offset by the reduction in
    our projected revenue growth due to mixed expectations of
    projected macroeconomic conditions since the grants in June
    2009, as well as a contemporaneous valuation report, dated
    September 18, 2009, and utilized the valuation
    methodologies described above to arrive at a fair value of our
    common stock of $2.52 per share and granted options at an
    exercise price of $3.00 per share.
October and November 2009.
In connection with
    our stock options grants in October and November, we continued
    to use the $2.52 per share valuation analyzed in September. Our
    board of directors reviewed the events since the grant of
    options in September 2009 and the continued recovery of the
    U.S. capital markets and concluded that there had been no
    significant change in our performance to cause an increase or
    decrease in the per share valuation of our common stock and
    granted options at an exercise price of $3.00 per share.
December 2009.
In connection with our stock
    option grants in December 2009, we considered the factors
    described above, including our improved sales performance and
    outlook and the improved market performance of our comparable
    public company peers since the September 2009 grants, as well as
    a contemporaneous valuation report, dated December 15,
    2009, and utilized the valuation methodologies described above
    to arrive at a fair value of our common stock of $2.83 per share
    and granted options at an exercise price of $3.00 per share.
February 2010.
In connection with our stock
    option grants in February 2010, we considered the factors
    described above, including continued improvement in our sales
    performance and outlook and the improved market performance of
    our comparable public company peers since the grant in December
    2009, as well as a contemporaneous valuation report, dated
    February 25, 2010, and utilized the valuation methodologies
    described above to arrive at a fair value of our common stock of
    $3.37 per share and granted options at an exercise price of
    $3.75 per share in February 2010.
Income
    Taxes
Income taxes are provided based on the liability method, which
    results in income tax assets and liabilities arising from
    temporary differences. Temporary differences are differences
    between the tax basis of assets and liabilities and their
    reported amounts in the financial statements that will result in
    taxable or deductible amounts in future years. The liability
    method requires the effect of tax rate changes on current and
    accumulated deferred income taxes to be reflected in the period
    in which the rate change was enacted. The liability method also
    requires that deferred tax assets be reduced by a valuation
    allowance unless it is more likely than not that the assets will
    be realized.
We may recognize the tax benefit from uncertain tax positions
    only if it is at least more likely than not that the tax
    position will be sustained on examination by the taxing
    authorities, based on the technical merits of the position. The
    tax benefits recognized in the financial statements from such a
    position should be measured based on the largest benefit that
    has a greater than fifty percent likelihood of being realized
    upon
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Table of Contents
settlement with the taxing authorities. Upon our adoption of the
    related standard, there was no liability for uncertain tax
    positions due to the fact that there were no material identified
    tax benefits that were considered uncertain positions.
We establish valuation allowances when necessary to reduce
    deferred tax assets to the amounts expected to be realized. We
    evaluate the need for, and the adequacy of, valuation allowances
    based on the expected realization of our deferred tax assets.
    The factors used to assess the likelihood of realization include
    historical earnings, our latest forecast of taxable income and
    available tax planning strategies that could be implemented to
    realize the net deferred tax assets. In December 2009, based on
    current year income and projected future year income, we
    concluded that it is more likely than not that the net deferred
    tax assets recorded will be realized. As such, we deemed it
    appropriate to decrease the valuation allowance by
    $27.0 million during 2009.
Our effective tax rates are primarily affected by the amount of
    our taxable income or losses in the various taxing jurisdictions
    in which we operate, the amount of federal and state net
    operating losses and tax credits, the extent to which we can
    utilize these net operating loss carryforwards and tax credits
    and certain benefits related to stock option activity.
Capitalized
    Product Development Costs
We capitalize specific product development costs, including
    costs to develop software products or the software components of
    our solutions to be marketed to our customers, as well as
    software programs to be used solely to meet our internal needs.
    The costs incurred in the preliminary stages of development
    related to research, project planning, training, maintenance and
    general and administrative activities, and overhead costs are
    expensed as incurred. The costs of relatively minor upgrades and
    enhancements to the software are also expensed as incurred. Once
    an application has reached the development stage, internal and
    external costs incurred in the performance of application
    development stage activities, including materials, services and
    payroll-related costs for employees are capitalized, if direct
    and incremental, until the software is substantially complete
    and ready for its intended use. Capitalization ceases upon
    completion of all substantial testing. We also capitalize costs
    related to specific upgrades and enhancements when it is
    probable the expenditures will result in additional
    functionality. Capitalized costs are recorded as part of
    property and equipment. Internal use software is amortized on a
    straight-line basis over its estimated useful life, generally
    three years. We capitalized $1.5 million and
    $1.4 million of product development costs during the years
    ended December 31, 2008 and 2009, respectively, and
    recognized amortization expense of $0.8 million,
    $0.9 million and $1.3 million during the years ended
    December 31, 2007, 2008 and 2009, respectively, included as
    a component of cost of revenue. Unamortized product development
    cost was $2.9 million and $3.1 million at
    December 31, 2008 and 2009, respectively. Management
    evaluates the useful lives of these assets on an annual basis
    and tests for impairment whenever events or changes in
    circumstances occur that could impact the recoverability of
    these assets. There were no impairments to internal use software
    during the years ended December 31, 2007, 2008 or 2009.
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Table of Contents
Results
    of Operations
The following tables set forth our results of operations for the
    specified periods. The period-to-period comparison of financial
    results is not necessarily indicative of future results.
Consolidated
    Statements of Operations Data
Year Ended December 31,
2007
2008
2009
(in thousands)
Revenue:
On demand
$
62,592
$
95,192
$
128,377
On premise
11,560
7,582
3,860
Professional and other
9,429
9,794
8,665
Total revenue
83,581
112,568
140,902
Cost of
    revenue
(1)
35,703
46,058
58,513
Gross profit
47,878
66,510
82,389
Operating expense:
Product
    development
(1)
21,708
28,806
27,446
Sales and
    marketing
(1)
18,047
23,923
27,804
General and
    administrative
(1)
9,756
14,135
20,210
Total operating expenses
49,511
66,864
75,460
Operating (loss) income
(1,633
)
(354
)
6,929
Interest expense, net
(1,510
)
(2,152
)
(4,528
)
Net (loss) income before taxes
(3,143
)
(2,506
)
2,401
Income tax expense (benefit)
—
703
(26,028
)
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
(1)
Includes stock-based compensation expense as follows:
Year Ended December 31,
2007
2008
2009
(in thousands)
Cost of revenue
$
48
$
104
$
367
Product development
251
727
1,175
Sales and marketing
110
277
498
General and administrative
81
368
765
Total stock-based compensation expense
$
490
$
1,476
$
2,805
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The following table sets forth our results of operations for the
    specified periods as a percentage of our revenue for those
    periods. The period-to-period comparison of financial results is
    not necessarily indicative of future results.
Year Ended December 31,
2007
2008
2009
(as a percentage of total revenue)
Revenue:
On demand
74.9
%
84.6
%
91.1
%
On premise
13.8
6.7
2.7
Professional and other
11.3
8.7
6.2
Total revenue
100.0
100.0
100.0
Cost of revenue
42.7
40.9
41.5
Gross profit
57.3
59.1
58.5
Operating expense:
Product development
26.0
25.6
19.5
Sales and marketing
21.6
21.3
19.7
General and administrative
11.7
12.6
14.3
Total operating expenses
59.3
59.5
53.5
Operating (loss) income
(2.0
)
(0.4
)
5.0
Interest expense, net
(1.8
)
(1.9
)
(3.2
)
Net (loss) income before taxes
(3.8
)
(2.3
)
1.8
Income tax expense (benefit)
—
0.6
(18.5
)
Net (loss) income
(3.8
)
(2.9
)
20.3
Year
    Ended December 31, 2008 and 2009
Revenue
Year Ended December 31,
2008
2009
Change
% Change
(in thousands, except dollar per unit data)
Revenue:
On demand
$
95,192
$
128,377
$
33,185
34.9
%
On premise
7,582
3,860
(3,722
)
(49.1
)
Professional and other
9,794
8,665
(1,129
)
(11.5
)
Total revenue
$
112,568
$
140,902
$
28,334
25.2
%
On demand unit metrics:
Ending on demand units
3,833
4,551
718
18.7
%
Average on demand units
3,138
4,128
990
31.5
On demand revenue per average on demand unit
$
30.34
$
31.10
$
0.76
2.5
%
On demand revenue.
Our on demand revenue
    increased $33.2 million, or 34.9%, in 2009 as compared to
    2008, primarily due to a 31.5% increase in the average on demand
    units managed with our on demand software solutions and an
    increase in the number of our on demand software solutions
    utilized by our existing customer base.
On premise revenue.
On premise revenue
    decreased $3.7 million, or (49.1)%, in 2009 as compared to
    2008, primarily due to the impact of our decision to cease
    actively marketing our on premise software solutions and our
    efforts to migrate customers of our on premise software
    solutions to our on demand software
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Table of Contents
solutions. In addition, our on premise software solution for
    conventional multi-family properties, RentRoll, was discontinued
    and was no longer supported after July 2009.
Professional and other revenue.
Professional
    and other services revenue decreased $1.1 million, or
    (11.5)%, in 2009 as compared to 2008, primarily due to a
    decrease in revenue from training and consulting services and a
    decrease in revenue from sub-meter installations.
Total revenue.
Our total revenue increased
    $28.3 million, or 25.2%, in 2009 as compared to 2008,
    primarily due to an increase in rental property units managed
    with our on demand software solutions and improved penetration
    of our on demand software solutions into our customer base.
On demand unit metrics.
As of
    December 31, 2009, one or more of our on demand software
    solutions was utilized in the management of 4.6 million
    rental housing units, representing an increase of
    718,000 units, or 18.7%, as compared to 2008. The increase
    in the number of rental units managed by one or more of our on
    demand software solutions was primarily due to new customer
    sales and marketing efforts, our 2009 acquisitions and to a
    lesser degree, migration of our current customers from our on
    premise software solutions to our on demand software solutions.
    In 2009, our on demand revenue per average on demand unit was
    $31.10, representing an increase of $0.76, or 2.5%, as compared
    to 2008, primarily due to improved penetration of our on demand
    software solutions into our customer base.
Cost
    of Revenue
Year Ended December 31,
2008
2009
Change
% Change
(in thousands)
Cost of revenue
$
40,783
$
51,260
$
10,477
25.7
%
Depreciation and amortization
5,275
7,253
1,978
37.5
Total cost of revenue
$
46,058
$
58,513
$
12,455
27.0
%
Cost of revenue.
Cost of revenue increased
    $12.5 million, or 27.0%, in 2009 as compared to 2008. The
    increase in cost of revenue was primarily due to: a
    $10.2 million increase from costs related to the increased
    sales of our solutions; a $1.1 million increase in non-cash
    amortization of acquired technology as a result of our 2008 and
    2009 acquisitions; a $0.8 million increase in property and
    equipment depreciation expense resulting from expanding our
    infrastructure to support revenue delivery activities; and
    $0.3 million increase in
stock-based
compensation related to our professional services and data
    center operations personnel.
Operating
    Expenses
Year Ended December 31,
2008
2009
Change
% Change
(in thousands)
Product development
$
26,514
$
25,277
$
(1,237
)
(4.7
)%
Depreciation and amortization
2,292
2,169
(123
)
(5.4
)
Total product development expense
$
28,806
$
27,446
$
(1,360
)
(4.7
)%
Product development.
Product development
    expense decreased $1.4 million, or (4.7)%, in 2009 as
    compared to 2008. The decrease in product development expense
    was primarily due to: the absence of non-recurring charges
    related to the discontinuance of a business development project
    in 2008; a decrease in third-party development costs; and a
    decrease in depreciation of property and equipment. The decrease
    was partially offset by an increase in stock-based compensation
    in 2009 related to our product development personnel.
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Year Ended December 31,
2008
2009
Change
% Change
(in thousands)
Sales and marketing
$
21,649
$
23,744
$
2,095
9.7
%
Depreciation and amortization
2,274
4,060
1,786
78.5
Total sales and marketing expense
$
23,923
$
27,804
$
3,881
16.2
%
Sales and marketing.
Sales and marketing
    expense increased $3.9 million, or 16.2%, in 2009 as
    compared to 2008. The increase in sales and marketing expense
    was primarily due to: a $1.7 million increase in non-cash
    intangible amortization related to our 2008 and 2009
    acquisitions, which included acquired customer relationships and
    key supplier and vendor relationships; a $1.5 million
    increase in personnel expense and a $1.0 million increase
    in marketing program expense in 2009 as part of our strategy to
    expand our market share and further penetrate our existing
    customer base with sales of additional on demand software
    solutions; and a $0.2 million increase in stock-based
    compensation related to our sales and marketing personnel.
Year Ended December 31,
2008
2009
Change
% Change
(in thousands)
General and administrative
$
12,979
$
18,923
$
5,944
45.8
%
Depreciation and amortization
1,156
1,287
131
11.3
Total general and administrative expense
$
14,135
$
20,210
$
6,075
43.0
%
General and administrative.
General and
    administrative expense increased $6.1 million, or 43.0%, in
    2009 as compared to 2008. The increase in general and
    administrative expense was primarily due to: a $2.8 million
    increase in personnel expense and expense related to accounting,
    management information systems, legal, human resources and
    business development staff to support the growth in our
    business; a $0.7 million increase in legal fees primarily
    related to pursuing and closing acquisition opportunities; a
    $0.4 million increase in stock-based compensation; and an
    increase in various other general and administrative expenses
    driven by the investments in our administrative functions.
Interest
    Expense, Net
Interest expense, net, increased $2.4 million, or 110.4%,
    in 2009 as compared to 2008. The increase in interest expense,
    net, was primarily due to higher average debt balances related
    to the financing of our acquisitions and the issuance of notes
    payable to holders of our preferred stock in December 2008 in
    payment of accrued dividends. See Note 7 to Notes to
    Consolidated Financial Statements for the year ended
    December 31, 2009.
Provision
    for Taxes
We have not incurred federal income taxes due to the carry
    forward of net operating losses. At December 31, 2009, we
    had a net operating loss carry forward for federal income tax
    purposes of approximately $67.2 million that will begin to
    expire in 2018. We have historically offset all of our net
    deferred tax assets by a valuation allowance. However, in
    December 2009, based on current year income and our
    projections of future income, we concluded it was more likely
    than not that certain of our deferred tax assets would be
    realizable, and therefore the valuation allowance was reduced by
    $27.0 million.
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Year
    Ended December 31, 2007 and 2008
Revenue
Year Ended December 31,
2007
2008
Change
% Change
(in thousands, except dollar per unit data)
Revenue:
On demand
$
62,592
$
95,192
$
32,600
52.1
%
On premise
11,560
7,582
(3,978
)
(34.4
)
Professional and other
9,429
9,794
365
3.9
Total revenue
$
83,581
$
112,568
$
28,987
34.7
%
On demand unit metrics:
Ending on demand units
2,800
3,833
1,033
36.9
%
Average on demand units
2,293
3,138
845
36.9
On demand revenue per average on demand unit
$
27.30
$
30.34
$
3.04
11.1
On demand revenue.
On demand revenue increased
    $32.6 million, or 52.1%, in 2008 as compared to 2007,
    primarily due to an increase in rental property units managed
    with our on demand software solutions and an increase in the
    number of our on demand software solutions utilized by our
    existing customer base.
On premise revenue.
On premise revenue
    decreased $4.0 million, or (34.4)%, in 2008 as compared to
    2007. The revenue decrease was primarily due to: our higher
    focus on sales of our on demand software solutions; a decrease
    in the number of rental property units utilizing our on premise
    software solutions, which was a result of customers converting
    to our on demand software solutions, not renewing their on
    premise software license or customers' property sites
    turning over due to their sale or change in property management
    company.
Professional and other revenue.
Professional
    and other revenue increased $0.4 million, or 3.9%, in 2008
    as compared to 2007, primarily due to increased consulting and
    implementation activity associated with new sales of our on
    demand software solutions, which was partially offset by lower
    training and seminar revenue.
Total revenue.
Our total revenue increased
    $29.0 million, or 34.7%, in 2008 as compared to 2007,
    primarily due to an increase in rental property units managed
    with our on demand software solutions and improved penetration
    of our on demand software solutions into our customer base.
On demand unit metrics.
As of
    December 31, 2008, one or more of our on demand software
    solutions was utilized in the management of 3.8 million
    rental property units, an increase of approximately
    1.0 million units, or 36.9%, as compared to 2007. The
    increase in the number of rental property units managed by one
    or more of our on demand software solutions was primarily due to
    new customer sales and marketing efforts, our 2008 acquisitions
    and, to a lesser degree, migration of our current customers from
    our on premise software solutions. In 2008, our on demand
    revenue per average on demand unit was $30.34, representing an
    increase of $3.04, or 11.1%, as compared to 2007, primarily due
    to improved penetration of our on demand software solutions into
    our customer base.
Cost
    of Revenue
Year Ended December 31,
2007
2008
Change
% Change
(in thousands)
Cost of revenue
$
32,056
$
40,783
$
8,727
27.2
%
Depreciation and amortization
3,647
5,275
1,628
44.6
Total cost of revenue
$
35,703
$
46,058
$
10,355
29.0
%
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Table of Contents
Cost of revenue.
Cost of revenue increased
    $10.4 million, or 29.0%, in 2008 as compared to 2007. The
    increase in cost of revenue was primarily due to: a
    $8.6 million increase from costs related to the increased
    sales of our solutions; a $1.3 million increase in property
    and equipment depreciation expense resulting from expanding our
    infrastructure to support revenue delivery activities; and a
    $0.3 million increase in non-cash amortization of acquired
    technology as a result of our 2008 acquisitions.
Operating
    Expenses
Year Ended December 31,
2007
2008
Change
% Change
(in thousands)
Product development
$
20,459
$
26,514
$
6,055
29.6
%
Depreciation and amortization
1,249
2,292
1,043
83.5
Total product development
$
21,708
$
28,806
$
7,098
32.7
%
Product development.
Product development
    expense increased $7.1 million, or 32.7%, in 2008 as
    compared to 2007. The increase in product development expense
    was primarily due to: a $3.8 million increase in personnel
    expense primarily related to the associated costs to support our
    growth initiatives and the addition of new solutions; a
    $1.0 million increase in depreciation of property and
    equipment from expanding our infrastructure to support our
    revenue growth; a $0.8 million non-cash asset disposal
    resulting from the discontinuance of a business development
    project in 2008; and a $0.5 million increase in stock-based
    compensation related to our product development personnel.
Year Ended December 31,
2007
2008
Change
% Change
(in thousands)
Sales and marketing
$
16,215
$
21,649
$
5,434
33.5
%
Depreciation and amortization
1,832
2,274
442
24.1
Total sales and marketing expense
$
18,047
$
23,923
$
5,876
32.6
%
Sales and marketing.
Sales and marketing
    expense increased $5.9 million, or 32.6%, in 2008 as
    compared to 2007. The increase in sales and marketing expense
    was primarily due to: a $3.2 million increase in personnel
    expense related to expanding our sales and marketing workforce
    as part of our strategy to increase our market share and further
    penetrate our existing customer base with additional on demand
    software solutions; a $1.5 million increase in marketing
    program expense in support of our growth strategy; a
    $0.4 million increase in property and equipment
    depreciation expense; and a $0.2 million increase in
    stock-based compensation related to our sales and marketing
    personnel.
Year Ended December 31,
2007
2008
Change
% Change
(in thousands)
General and administrative
$
9,357
$
12,979
$
3,622
38.7
%
Depreciation and amortization
399
1,156
757
189.7
Total general and administrative expense
$
9,756
$
14,135
$
4,379
44.9
%
General and administrative.
General and
    administrative expense increased $4.4 million, or 44.9%, in
    2008 as compared to 2007. The increase in general and
    administrative expense was primarily due to: a $2.4 million
    increase in personnel expense related to an increase in
    accounting, management information systems, legal and human
    resources personnel to support the growth in our business; a
    $0.8 million increase in depreciation of property and
    equipment in 2008 driven by the investments in our
    administrative support functions; a $0.3 million increase
    in stock-based compensation related to our general and
    administrative personnel; and an increase various other general
    and administrative expenses driven by the investment in our
    administrative functions necessary to support our growth.
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Table of Contents
Interest
    Expense, Net
Interest expense, net, increased $0.6 million, or 42.5%, in
    2008 as compared to 2007. The increase in interest expense, net,
    was primarily due to higher average debt balances related to the
    financing of our acquisition activities.
Provision
    for Taxes
We have recorded a valuation allowance related to income taxes
    to reflect uncertainties associated with the realization of
    deferred tax assets. As a result, the benefit from income taxes
    is zero in 2007.
Quarterly
    Results of Operations
The following table presents our unaudited consolidated
    quarterly results of operations for the eight fiscal quarters
    ended December 31, 2009. This information is derived from
    our unaudited consolidated financial statements, and includes
    all adjustments, consisting only of normal recurring
    adjustments, that we consider necessary for fair statement of
    our financial position and operating results for the quarters
    presented. Operating results for these periods are not
    necessarily indicative of the operating results for a full year.
    Historical results are not necessarily indicative of the results
    to be expected in future periods. You should read this data
    together with our consolidated financial statements and the
    related notes to these financial statements included elsewhere
    in this prospectus.
Three Months Ended,
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
September 30,
December 31,
2008
2008
2008
2008
2009
2009
2009
2009
(in thousands)
Revenue:
On demand
$
20,724
$
22,486
$
24,520
$
27,462
$
29,264
$
30,852
$
33,069
$
35,192
On premise
2,140
1,902
1,766
1,774
1,437
1,441
468
514
Professional and other
1,936
2,351
2,982
2,525
1,942
2,175
2,117
2,431
Total revenue
24,800
26,739
29,268
31,761
32,643
34,468
35,654
38,137
Cost of
    revenue
(1)
10,060
10,811
12,074
13,113
13,035
14,568
15,201
15,709
Gross profit
14,740
15,928
17,194
18,648
19,608
19,900
20,453
22,428
Operating expense:
Product
    development
(1)
6,668
7,074
6,932
8,132
6,711
6,887
6,675
7,173
Sales and
    marketing
(1)
5,308
5,600
6,325
6,690
6,180
6,833
7,363
7,428
General and
    administrative
(1)
3,173
3,456
3,648
3,858
4,536
4,187
4,552
6,935
Total operating expenses
15,149
16,130
16,905
18,680
17,427
17,907
18,590
21,536
Operating (loss) income
(409
)
(202
)
289
(32
)
2,181
1,993
1,863
892
Interest expense, net
(460
)
(418
)
(493
)
(781
)
(985
)
(998
)
(1,123
)
(1,422
)
Net (loss) income before taxes
(869
)
(620
)
(204
)
(813
)
1,196
995
740
(530
)
Income tax expense (benefit)
—
65
—
638
69
85
64
(26,246
)
Net (loss) income
$
(869
)
$
(685
)
$
(204
)
$
(1,451
)
$
1,127
$
910
$
676
$
25,716
(1)
Includes stock-based compensation expense as follows:
Three Months Ended,
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
September 30,
December 31,
2008
2008
2008
2008
2009
2009
2009
2009
(in thousands)
Cost of revenue
$
19
$
23
$
21
$
41
$
67
$
85
$
103
$
112
Product development
181
158
170
218
246
252
277
400
Sales and marketing
39
76
76
86
98
117
135
148
General and administrative
57
98
101
112
154
159
211
241
Total stock-based compensation expense
$
296
$
355
$
368
$
457
$
565
$
613
$
726
$
901
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Table of Contents
The following table sets forth our results of operations for the
    specified periods as a percentage of our revenue for those
    periods. The period-to-period comparison of financial results is
    not necessarily indicative of future results.
Three Months Ended,
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
September 30,
December 31,
2008
2008
2008
2008
2009
2009
2009
2009
(as a percentage of total revenue)
Revenue:
On demand
83.6
%
84.1
%
83.8
%
86.5
%
89.6
%
89.5
%
92.7
%
92.3
%
On premise
8.6
7.1
6.0
5.5
4.5
4.2
1.4
1.3
Professional and other
7.8
8.8
10.2
8.0
5.9
6.3
5.9
6.4
Total revenue
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Cost of revenue:
Software and services
40.6
40.4
41.3
41.3
39.9
42.3
42.6
41.2
Gross profit
59.4
59.6
58.7
58.7
60.1
57.7
57.4
58.8
Operating expense:
Product development
26.9
26.5
23.7
25.6
20.6
20.0
18.7
18.8
Sales and marketing
21.4
20.9
21.6
21.1
18.9
19.8
20.7
19.5
General and administrative
12.8
12.9
12.5
12.1
13.9
12.1
12.8
18.2
Total operating expenses
61.1
60.3
57.8
58.8
53.4
51.9
52.2
56.5
Operating (loss) income
(1.6
)
(0.8
)
1.0
(0.1
)
6.7
5.8
5.2
2.3
Interest expense, net
(1.9
)
(1.6
)
(1.7
)
(2.5
)
(3.0
)
(2.9
)
(3.1
)
(3.7
)
Net (loss) income before taxes
(3.5
)
(2.4
)
(0.7
)
(2.6
)
3.7
2.9
2.1
(1.4
)
Income tax expense (benefit)
—
0.2
—
2.0
0.2
0.2
0.2
(68.8
)
Net (loss) income
(3.5
)
(2.6
)
(0.7
)
(4.6
)
3.5
2.7
1.9
67.4
Our revenue increased in each of the quarters presented above
    primarily as a result of increases in rental property units
    managed with our on demand software solutions, successful
    efforts to increase the number of on demand software solutions
    utilized by our customer base and our 2008 and 2009
    acquisitions. To date, we have not experienced any significant
    impact on our results of operations due to seasonality.
Cost of revenue increased over the course of the quarters
    presented above primarily due to increase in operating costs
    related to the increased sales of our solutions; higher
    technology support costs in order to support our growth; the
    cost of revenue added by our acquisitions; and higher non-cash
    amortization of technology acquired through our acquisitions.
    While cost of revenue increased in absolute dollars, gross
    margin has remained relatively consistent in each of the
    quarters presented.
Operating expense has steadily increased in absolute dollars
    over the course of the quarters presented above primarily due to
    increased personnel related expenses in support of our growth
    initiatives in addition to incremental expenses associated with
    acquired companies. Operating expense may vary as a result of
    the timing of sales and marketing activities, the timing of
    acquisitions or the discontinuance of projects, among other
    factors. For example, operating expense decreased from the
    fourth quarter of 2008 to the first quarter of 2009 primarily
    due to a decline in product development expense attributable to
    the discontinuance of a business development project during the
    fourth quarter of 2008. Additionally, during the fourth quarter
    of 2009, operating expense increased as a percentage of revenue
    when compared to the prior three quarters primarily as a result
    of an increase in general and administrative expense associated
    with higher professional fees and other costs related to
    pursuing acquisition opportunities combined with incremental
    general and administrative expense associated with the
    acquisitions we completed during the third and fourth quarters
    of 2009. Since our inception, we have made significant
    investments in developing new solutions, enhancing existing
    solutions, and expanding our sales and marketing efforts in
    order to increase our market share and to further penetrate our
    existing customer base with additional on demand software
    solutions. As a result of these investments, we have experienced
    significant revenue growth, which has resulted in a trend of
    decreased operating expense as a percentage of our total revenue.
65
Table of Contents
Reconciliation
    of Quarterly Non-GAAP Financial Measures
We anticipate that our investor and analyst presentations will
    include Adjusted EBITDA. We define Adjusted EBITDA as net (loss)
    income plus depreciation and asset impairment, amortization of
    intangible assets, interest expense, net, income tax expense
    (benefit), stock-based compensation expense and
    acquisition-related expense. We believe that the use of Adjusted
    EBITDA is useful to investors and other users of our financial
    statements in evaluating our operating performance because it
    provides them with an additional tool to compare business
    performance across companies and across periods. We believe that:
•
Adjusted EBITDA provides investors and other users of our
    financial information consistency and comparability with our
    past financial performance, facilitates period-to-period
    comparisons of operations and facilitates comparisons with our
    peer companies, many of which use similar non-GAAP financial
    measures to supplement their GAAP results; and
•
it is useful to exclude certain non-cash charges, such as
    depreciation and asset impairment, amortization of intangible
    assets and stock-based compensation and non-core operational
    charges, such as acquisition-related expense, from Adjusted
    EBITDA because the amount of such expenses in any specific
    period may not directly correlate to the underlying performance
    of our business operations and these expenses can vary
    significantly between periods as a result of new acquisitions,
    full amortization of previously acquired tangible and intangible
    assets or the timing of new stock-based awards, as the case may
    be.
We use Adjusted EBITDA in conjunction with traditional GAAP
    operating performance measures as part of our overall assessment
    of our performance, for planning purposes, including the
    preparation of our annual operating budget, to evaluate the
    effectiveness of our business strategies and to communicate with
    our board of directors concerning our financial performance.
We do not place undue reliance on Adjusted EBITDA as our only
    measure of operating performance. Adjusted EBITDA should not be
    considered as a substitute for other measures of liquidity or
    financial performance reported in accordance with GAAP. There
    are limitations to using non-GAAP financial measures, including
    that other companies may calculate these measures differently
    than we do, that they do not reflect our capital expenditures or
    future requirements for capital expenditures and that they do
    not reflect changes in, or cash requirements for, our working
    capital. We compensate for the inherent limitations associated
    with using the Adjusted EBITDA measures through disclosure of
    these limitations, presentation of our financial statements in
    accordance with GAAP and reconciliation of Adjusted EBITDA to
    the most directly comparable GAAP measure, net (loss) income.
The following table presents a reconciliation of net (loss)
    income to Adjusted EBITDA for the eight fiscal quarters ended
    December 31, 2009:
Three Months Ended,
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
September 30,
December 31,
2008
2008
2008
2008
2009
2009
2009
2009
(in thousands)
Net (loss) income
$
(869
)
$
(685
)
$
(204
)
$
(1,451
)
$
1,127
$
910
$
676
$
25,716
Depreciation and asset impairment
1,835
2,018
2,244
3,750
2,043
2,470
2,419
2,299
Amortization of intangible assets
657
333
331
774
1,362
1,322
1,279
1,821
Interest expense, net
460
418
493
781
985
998
1,123
1,422
Income tax expense (benefit)
—
65
—
638
69
85
64
(26,246
)
Stock-based compensation expense
296
355
368
457
565
613
726
901
Acquisition-related expense
—
—
—
—
—
—
20
824
Adjusted EBITDA
$
2,379
$
2,504
$
3,232
$
4,949
$
6,151
$
6,398
$
6,307
$
6,737
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Table of Contents
Liquidity
    and Capital Resources
We have financed our operations primarily through private
    placements of preferred equity securities and common stock,
    secured credit facilities with commercial lenders, a private
    placement of subordinated debt securities and cash provided by
    operating activities. Our primary sources of liquidity as of
    December 31, 2009 consisted of $4.4 million of cash
    and cash equivalents, $10 million available under our
    revolving line of credit and $12.9 million of working
    capital (excluding deferred revenue).
Our principal uses of liquidity have been to fund our
    operations, working capital requirements, capital expenditures
    and acquisitions and to service our debt obligations. We expect
    that working capital requirements, capital expenditures and
    acquisitions will continue to be our principal needs for
    liquidity over the near term. Our planned capital expenditures
    for 2010 are not expected to exceed $12.0 million. In addition,
    we have made several acquisitions in which a portion of the cash
    purchase price is payable at various times through 2014. We
    expect to fund these obligations from cash provided by operating
    activities.
We believe that our existing cash and cash equivalents, working
    capital (excluding deferred revenue) and our cash flow from
    operations, together with the proceeds of this offering, will be
    sufficient to fund our operations and planned capital
    expenditures and service our debt obligations for at least the
    next 12 months. Our future capital requirements will depend
    on many factors, including our rate of revenue growth, the
    timing and size of acquisitions, the expansion of our sales and
    marketing activities, the timing and extent of spending to
    support product development efforts, the timing of introductions
    of new solutions and enhancements to existing solutions and the
    continuing market acceptance of our solutions. We may enter into
    acquisitions of, complementary businesses, applications or
    technologies, in the future, which could require us to seek
    additional equity or debt financing. Additional funds may not be
    available on terms favorable to us, or at all.
The following table sets forth cash flow data for the periods
    indicated therein:
Year Ended December 31,
2007
2008
2009
(in thousands)
Net cash provided by operating activities
$
4,441
$
7,962
$
24,758
Net cash used in investing activities
(16,155
)
(32,320
)
(24,676
)
Net cash provided by financing activities
11,952
25,875
97
Net
    Cash Provided by Operating Activities
In 2009, we generated $24.8 million of net cash from
    operating activities, which consisted of our net income of
    $28.4 million, offset by net non-cash income of
    $8.5 million, representing an increase of
    $16.8 million, or 211.0%, as compared to 2008. Net non-cash
    charges primarily consisted of a non-cash deferred tax benefit
    offset by depreciation, amortization and stock-based
    compensation expense. The increase in our net cash from
    operating activities in 2009 was primarily due to our net
    income, cash inflows from changes in working capital and greater
    collection of accounts receivable, which resulted in an
    improvement in the number of days that sales were outstanding
    from 68 days in 2008 to 57 days in 2009. This decrease
    in accounts receivable occurred despite an increase in revenues
    during the fourth quarter.
In 2008, we generated $8.0 million of net cash from
    operating activities, which consisted of our net loss of
    $3.2 million, offset by net non-cash charges of
    $13.9 million, representing an increase of
    $3.5 million, or 79.3%, as compared to 2007. Net non-cash
    charges to income primarily consisted of depreciation,
    amortization and stock-based compensation expense. The increase
    in our net cash from operating activities in 2008 was primarily
    due to cash outflows from changes in working capital including
    an increase in accounts receivable of $7.6 million from
    increased sales during the fourth quarter, partially offset by
    an increase in deferred revenues of $5.6 million. The
    increase in our net cash from operating activities in 2008 was
    primarily due to a reduction in our net loss, an increase of
    $6.3 million in non-cash charges and an increase in
    deferred revenue from increased sales during the fourth quarter,
    partially offset by increases in accounts receivable.
In 2007, we generated $4.4 million of net cash from
    operating activities, which consisted of our net loss of
    $3.1 million, offset by net non-cash charges of
    $7.6 million. Net non-cash charges to income primarily
67
Table of Contents
consisted of depreciation, amortization and stock-based
    compensation expense. Additionally, cash outflows from changes
    in working capital included an increase in accounts receivable
    of $5.2 million from increased sales near the end of the
    year, partially offset by an increase in deferred revenues of
    $4.4 million.
Net
    Cash Used in Investing Activities
In 2009, our investing activities used $24.7 million.
    Investing activities consisted of acquisition consideration of
    $11.6 million net of cash acquired for our 2009
    acquisitions, acquisition-related payments of $3.6 million
    for commitments related to prior years' acquisitions and
    $9.5 million of capital expenditures. The decrease in cash
    used in investing activities from 2008 relates to a decrease in
    capital spending of $0.8 million combined with a decrease
    in acquisition-related payments of $6.9 million.
In 2008, our investing activities used $32.3 million.
    Investing activities consisted of $20.1 million for our
    2008 acquisitions, acquisition-related payments of
    $1.9 million for commitments related to prior years'
    acquisitions and capital expenditures of $10.3 million. The
    increase in cash used in investing activities from 2007 relates
    to an increase in capital spending of $3.1 million and in
    increase in acquisition-related payments of $13.0 million.
In 2007, our investing activities used $16.2 million.
    Investing activities consisted of $7.0 million for our 2007
    acquisition, acquisition-related payments of $2.1 million
    for commitments related to prior years' acquisitions and
    capital expenditures of $7.1 million.
Capital expenditures in 2009, 2008 and 2007 were primarily
    related to investments in technology infrastructure to support
    our growth initiatives.
Net
    Cash Provided by Financing Activities
Our financing activities provided $0.1 million in 2009,
    representing a decrease of $25.8 million, or 99.6%, as
    compared to 2008. Cash provided by financing activities in 2009
    was primarily related to net proceeds from refinancing our
    credit facility, offset by payments for scheduled term debt
    maturities, capital lease obligations and preferred stockholder
    notes payable.
Our financing activities provided $25.9 million in 2008,
    representing an increase of $13.9 million, or 116.5%, as
    compared to 2007. On February 22, 2008, in order to secure
    capital for future growth and business development activities,
    we entered into a securities purchase agreement whereby
    investors purchased an aggregate of 3,025,000 shares of
    Series C convertible preferred stock at a purchase price of
    $4.50 per share resulting in $13.4 million of net proceeds.
    Additionally, we had net proceeds of $4.5 million from our
    credit facility, $10.0 million of proceeds from a private
    placement of a note purchase agreement and common stock
    issuances of $0.6 million resulting from employees'
    and third parties' exercise of stock options and warrants.
    These proceeds were offset by $2.6 million of scheduled
    payments of capital lease obligations.
Our financing activities provided $12.0 million in 2007.
    Cash provided by financing activities in 2007 was primarily
    related to net proceeds of $11.5 million from our credit
    facility and common stock issuances of $1.1 million
    resulting from employees' and third parties' exercise
    of stock options and warrants. These proceeds were offset by
    $0.7 million of scheduled payments of capital lease
    obligations.
Cash provided by financing activities during 2009, 2008 and 2007
    was used to support our operations until we achieved positive
    operating cash flow, as a funding source for acquisitions and
    for capital expenditures related to the expansion of our
    technology infrastructure.
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Table of Contents
Contractual
    Obligations, Commitments and Contingencies
After giving effect to the February 2010 amendment to our credit
    facility, the following table summarizes, as of
    December 31, 2009, our minimum payments for long-term debt
    and other obligations for the next five years and thereafter:
Payments Due by Period
Less Than
More Than
Total
1 year
1-3 years
3-5 years
5 years
(in thousands)
Long-term debt
    obligations
(1)
$
61,861
$
11,093
$
23,443
$
27,325
$
—
Capital (finance) leases
2,273
1,670
603
—
—
Operating lease obligations
27,051
4,922
8,197
7,591
6,341
Acquisition-related
    liabilities
(2)
4,359
1,653
1,842
864
—
$
95,544
$
19,338
$
34,085
$
35,780
$
6,341
(1)
The amount of long-term debt obligations shown in the table
    above does not include any interest payments.
(2)
We have made several acquisitions in which a portion of the cash
    purchase price is payable at various times through 2014.
Long-Term
    Debt Obligations
In September 2009, we entered into a credit facility which
    provided for a $35.0 million term loan and a
    $10.0 million revolving line of credit. A portion of the
    proceeds from the credit facility was used to repay the balance
    outstanding under our prior credit facility. The term loan and
    revolving line of credit bear interest at rates of the greater
    of 7.5%, a stated rate of 5.0% plus LIBOR, or a stated rate of
    5.0% plus the bank's prime rate (or, if greater than 3.5%,
    the federal funds rate plus 0.5% or three month LIBOR plus
    1.0%). The term loan and revolving line of credit are
    collateralized by all our personal property and were subject to
    financial covenants, including meeting certain financial
    measures.
In February 2010, we entered into an amendment to the credit
    facility. Under terms of the amendment, the original term loan
    was increased by an additional $10.0 million. This
    amendment increased the balance outstanding on the term loan to
    $43.7 million. The proceeds from the amendment were
    primarily used to finance the February 2010 acquisition of
    certain assets of Domin-8 Enterprise Solutions, Inc. The related
    interest rates and maturity periods remained consistent with the
    terms of the credit facility. Principal payments on the term
    loan are due in quarterly installments of approximately $1.8
    million until September 30, 2010, increasing to approximately
    $2.3 million until September 30, 2011, increasing to
    approximately $2.4 million until September 30, 2012 and
    increasing to quarterly installments of approximately $2.5
    million through March 31, 2013, with the balance due on June 30,
    2013. The effects of the payments related to this amendment have
    been included in the table above.
In August 2008, we entered into a note purchase agreement with a
    separate lender. Under the terms of the agreement, we issued
    secured promissory notes in the aggregate principal amount of
    $10.0 million with an interest rate of 13.75%, payable
    quarterly. These notes are to be paid in full before
    August 1, 2013. These notes are collateralized by all our
    personal property and are subordinated to the Credit Agreement.
    The balance of these notes at December 31, 2009 was
    $10.0 million.
On December 30, 2008, in connection with a declaration of
    dividend for all holders of our preferred stock, we issued
    promissory notes to the holders of our preferred stock in an
    aggregate principal amount of $11.1 million. The promissory
    notes bear interest at a rate of 8% and are payable in 16
    consecutive quarterly payments of principal and interest. An
    additional amount equal to $0.9 million became payable in
    September 2009 under the terms of these promissory notes and
    will be paid upon maturity. The payments may be deferred at the
    discretion of the board of directors. The balance of these notes
    at December 31, 2009 was $8.2 million.
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Off-Balance
    Sheet Arrangements
We do not have any off-balance sheet financing arrangements and
    we do not have any relationships with unconsolidated entities or
    financial partnerships, such as entities often referred to as
    structured finance or special purpose entities, which have been
    established for the purpose of facilitating off-balance sheet
    arrangements or other contractually narrow or limited purposes.
Recent
    Accounting Pronouncements
Accounting
    Standards Codification
In September 2009, we adopted the Accounting Standards
    Codification, or ASC, established by the Financial Accounting
    Standards Board, or FASB. The FASB established the ASC as the
    single source of authoritative non-governmental GAAP,
    superseding various existing authoritative accounting
    pronouncements. It eliminates the previous GAAP hierarchy and
    establishes one level of authoritative GAAP. All other
    literature is considered non-authoritative. The FASB will not
    issue new standards in the form of Statements, FASB Staff
    Positions or Emerging Issues Task Force Abstracts. Instead, it
    will issue an Accounting Standards Update, or ASU. The FASB will
    not consider ASUs as authoritative in their own right. ASUs will
    serve only to update the ASC, provide background information
    about the guidance and provide the bases for conclusions on the
    change(s) in the ASC.
Business
    Combinations
In December 2007, the FASB issued guidance regarding business
    combinations, which significantly changes the principles and
    requirements for how the acquirer of a business recognizes and
    measures in its financial statements the identifiable assets
    acquired, the liabilities assumed, any non-controlling interest
    in the acquiree, and the goodwill acquired. This statement is
    effective prospectively, except for certain retrospective
    adjustments to deferred tax balances, for fiscal years beginning
    after December 15, 2008. We applied these provisions to our
    2009 acquisitions which resulted in expensing related
    transaction costs and valuing contingent consideration at the
    date of acquisition.
Fair
    Value Measurements
In September 2009, the FASB issued an ASU providing
    clarification for measuring the fair value of a liability when a
    quoted price in an active market for the identical liability is
    not available. It also clarifies that when estimating the fair
    value of a liability, a reporting entity is not required to
    include a separate input or adjustment to other inputs relating
    to the existence of a restriction that prevents the transfer of
    the liability. This ASU is effective for fiscal periods
    beginning after August 27, 2009. The Company does not
    believe this update will have a material impact on its
    consolidated financial statements.
Subsequent
    Events
In May 2009, the FASB issued an ASU that established general
    standards of accounting for and disclosure of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. Although there is new
    terminology, the standard is based on the same principles as
    those that currently exist in the auditing standards. The
    standard, which requires Companies to evaluate the disclosure of
    subsequent events, is effective for interim or annual periods
    ending after June 15, 2009. The adoption of this update had
    no impact on our consolidated results of operations or financial
    position.
Multiple
    Element Arrangements
In October 2009, the FASB issued an ASU that amended the
    accounting rules addressing revenue recognition for
    multiple-deliverable revenue arrangements by eliminating the
    existing criteria that objective and reliable evidence of fair
    value for undelivered products or services exist in order to be
    able to separately account for deliverables. Additionally, the
    ASU provides for elimination of the use of the residual method
    of allocating arrangement consideration and requires that
    arrangement consideration be allocated at the inception
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of the arrangement to all deliverables that can be accounted for
    separately based on their relative selling price. A hierarchy
    for estimating such selling price is included in the update.
    This ASU will be effective prospectively for revenue
    arrangements entered into or materially modified in fiscal years
    beginning on or after June 15, 2010. Early adoption is
    permitted. The Company adopted these accounting standards for
    all periods herein.
In October 2009, the FASB issued an ASU that changes the
    criteria for determining when an entity should account for
    transactions with customers using the revenue recognition
    guidance applicable to the selling or licensing of software.
    This ASU is effective prospectively for revenue arrangements
    entered into or materially modified in fiscal years beginning on
    or after June 15, 2010. Early adoption is permitted. The
    Company does not believe this update will have a material impact
    on its consolidated financial statements.
Quantitative
    and Qualitative Disclosures about Market Risk
Market risk represents the risk of loss that may impact our
    financial position due to adverse changes in financial market
    prices and rates. Our market risk exposure is primarily a result
    of fluctuations in interest rates. We do not hold or issue
    financial instruments for trading purposes.
We had cash and cash equivalents of $2.7 million,
    $4.2 million and $4.4 million at December 31,
    2007, 2008 and 2009, respectively. We held these amounts
    primarily in cash or money market funds.
We hold cash and cash equivalents for working capital purposes.
    We do not have material exposure to market risk with respect to
    investments, as our investments consist primarily of highly
    liquid investments purchased with original maturities of three
    months or less. We do not use derivative financial instruments
    for speculative or trading purposes; however, we may adopt
    specific hedging strategies in the future. Any declines in
    interest rates, however, will reduce future interest income.
We had total outstanding debt of $18.2 million,
    $43.7 million and $51.9 million at December 31,
    2007, 2008 and 2009, respectively. The interest rate on this
    debt is variable and adjusts periodically based on the
    three-month LIBOR rate. If the LIBOR rate changes by 1%, our
    annual interest expense would change by approximately
    $0.6 million.
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BUSINESS
Company
    Overview
We are a leading provider of on demand software solutions for
    the rental housing industry. Our broad range of property
    management solutions enables owners and managers of
    single-family and a wide variety of multi-family rental property
    types to manage their marketing, pricing, screening, leasing,
    accounting, purchasing and other property operations. Our on
    demand software solutions are delivered through an integrated
    software platform that provides a single point of access and a
    shared repository of prospect, resident and property data. By
    integrating and streamlining a wide range of complex processes
    and interactions among the rental housing ecosystem of owners,
    managers, prospects, residents and service providers, our
    platform optimizes the property management process and improves
    the experience for all of these constituents.
Our solutions enable property owners and managers to increase
    revenues and reduce operating costs through higher occupancy,
    improved pricing methodologies, new sources of revenue from
    ancillary services, improved collections and more integrated and
    centralized processes. As of December 31, 2009, over
    5,000 customers used one or more of our on demand software
    solutions to help manage the operations of approximately
    4.6 million rental housing units. Our customers include
    nine of the ten largest multi-family property management
    companies in the United States, ranked as of January 1,
    2009, based on number of units managed.
We sell our solutions through our direct sales organization. Our
    total revenues were approximately $83.6 million,
    $112.6 million and $140.9 million in 2007, 2008 and
    2009, respectively. In the same years, we had operating (loss)
    income of approximately ($1.6 million), ($0.4 million)
    and $6.9 million, respectively, and net (loss) income of
    approximately ($3.1 million), ($3.2 million) and
    $28.4 million, respectively. Net income for 2009 included a
    discrete tax benefit of approximately $26.0 million as a
    result of a reduction of our net deferred tax assets valuation
    allowance.
Industry
    Overview
The
    rental housing market is large, growing and
    complex.
The rental housing market is large and characterized by
    challenging and location-specific operating requirements,
    diverse industry participants, significant mobility among
    residents and a variety of property types, including
single-family
and a wide range of
multi-family
property types, including conventional, affordable, privatized
    military, student and senior housing. According to the
    U.S. Census Bureau American Housing Survey for the United
    States: 2007, there were 39.3 million rental housing units
    in the United States in 2007. The U.S. Census Bureau
    divides the rental housing market into the following categories:
Number of
Property Size
Estimated Units
(in millions)
Single-family properties
1 unit
13.8
2-4 units
8.1
Multi-family properties
5-9 units
5.3
10-49 units
8.6
50 or more units
3.5
Total Rental Units
39.3
Based on U.S. Census Bureau data and our own estimates, we
    believe that the overall size of the U.S. rental housing
    market, including rent, utilities and insurance, exceeds
    $300 billion annually. We estimate that the total
    addressable market for our current on demand software solutions
    is approximately $5.5 billion per year. This estimate
    assumes that each of the 39.3 million rental units in the
    United States has the potential to generate annually a range of
    approximately $100 in revenue per unit for single-family units
    to approximately $240 in revenue per unit for conventional
    multi-family units. We base this potential revenue
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assumption on our review of the purchasing patterns of our
    existing customers with respect to our on demand software
    solutions, the on demand software solutions currently utilized
    by our existing customers, the number of units our customers
    manage with these solutions and our current pricing for on
    demand software solutions. Furthermore, the U.S. rental
    housing market has recently benefited from a number of
    significant trends, including decreased home ownership resulting
    in additional renter households and tougher mortgage lending
    standards reducing first-time home purchases and contributing to
    lower rates of renter attrition as renters choose to remain in
    rental units.
Rental
    property management spans both the resident lifecycle and the
    operations of a property.
The resident lifecycle can be separated into four key stages:
    prospect, applicant, residency and post-residency. Each stage
    has unique requirements, and a property owner's or
    manager's ability to effectively address these requirements
    can significantly impact revenue and profitability.
Resident Lifecycle Stage
Property Owner/Manager Objectives
Prospect
• increase number of leads through effective marketing
• optimize the advertising spending and marketing
    budget for each property
• capture every lead in a timely manner
• create a compelling online experience for each
    property
• identify quality prospects
• determine appropriate market rental rates
• increase prospect-to-resident conversion rates
Applicant
• automate application process
• assess applicant credit history and ability to pay
    rent
• assess applicant criminal background
• determine optimal rental rates and lease terms
    required to maximize revenue
• manage risk through renter's insurance
    programs
Residency
• foster resident retention through effective
    communications and responsive service
• manage rental payments and collections
• maintain property, including improvements and
    routine maintenance
• manage service provider network, including utilities
    and telecommunications vendors
• renew as high a percentage of lease expirations as
    possible
• determine optimal renewal rental rates required to
    maximize revenue
Post-residency
• improve collection of move-out expenses, including
    uncovered repairs and unpaid utilities
• manage process to efficiently and cost-effectively
    prepare the unit for new residents
• process final account statements and security
    deposit refunds
In addition to managing the resident lifecycle, property owners
    and managers must also manage the operations of their
    properties. Critical components of property operations include
    materials and service provider procurement, insurance and risk
    mitigation, utility and energy management, information
    technology and telecommunications management, accounting,
    expense tracking and management, document management, security,
    staff hiring and training, staff performance measurement and
    management and marketing.
Managing the resident lifecycle and the operations of a property
    involves several different constituents, including property
    owners and managers, prospects, residents and service providers.
    Property owners can include
single-property
owners, multi-property owners, national residential apartment
    syndicators that may own thousands of units through a variety of
    investment funds and real estate investment trusts, or REITs.
    Property managers often are responsible for a large number of
    properties that can range from single-family units to large
    apartment communities. Property owners and managers also need to
    manage a variety of service providers, including utilities,
    insurance providers, video, voice and data providers and
    maintenance and capital goods suppliers. Managing these diverse
    relationships, combined with frequent resident turnover and
    regulatory and compliance requirements, can make the operations
    of even a small portfolio of rental properties complex.
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Challenges are compounded for owners and managers responsible
    for a large portfolio of geographically dispersed properties,
    which require overseeing potentially hundreds of thousands of
    individual rental processes.
Legacy
    information technology solutions designed to manage the rental
    housing property management process are
    inadequate.
During the 1970's and 1980's, the rental housing
    market was highly fragmented and regionally organized. During
    this period, the first property management systems and software
    solutions emerged to help property owners and managers with
    basic accounting and record keeping functions. These solutions
    provided limited functionality and scalability and often were
    not tailored to the specific needs of rental housing property
    owners and managers.
Beginning in the mid 1990's, the rental housing market
    began to consolidate and large, nationally focused and publicly
    financed companies emerged, which aggregated significant numbers
    of units. The rise of national real estate portfolio managers,
    many of them accountable to public shareholders, created a need
    for more sophisticated and scalable property management systems
    that included a centralized database and were designed to
    optimize and automate multiple business processes within the
    resident lifecycle and property operations. Despite increasing
    market demands, the available solutions continued to be
    insufficient to fully address the complex requirements of rental
    housing property owners and managers, which moved beyond basic
    accounting and record keeping functions to also include
    value-added services such as Internet marketing, applicant
    screening, billing solutions and analytics for pricing and yield
    optimization.
To address their complex and evolving requirements, many rental
    housing property owners and managers have historically
    implemented a myriad of single point solutions
and/or
internally developed solutions to manage their properties. These
    solutions can be expensive to implement and maintain and often
    lack integrated functionality to help owners and managers
    increase rental revenue or reduce costs. In addition, many
    rental housing property owners and managers still rely on paper
    or spreadsheet-based approaches, which are typically time
    intensive and prone to human error or internal mismanagement. We
    believe these historical solutions are inadequate because they:
•
require significant customization to implement, which frequently
    inhibits upgrading to new versions or platforms in a timely
    manner;
•
require information technology, or IT, resources to support
    integration points between property management systems and
    disparate value-added services;
•
require IT resources to implement and maintain data security,
    data integrity, performance and business continuity solutions;
•
lack scalability and flexibility to account for the expansion or
    contraction of a property portfolio;
•
lack robust marketing and tracking capabilities for converting
    prospects to residents;
•
lack effective spend management capabilities for controlling
    property management costs;
•
lack comprehensive analytics for pricing and yield optimization;
•
lack workflow level integration;
•
do not provide owners and managers with visibility into overall
    property performance; and
•
cannot be easily updated to meet new regulations and compliance
    requirements.
On
    demand software solutions are well suited to meet the rental
    housing market's needs.
The ubiquitous nature of the Internet, widespread broadband
    adoption and improved network reliability and security have
    enabled the deployment and delivery of business-critical
    applications over the Internet. The on demand delivery model is
    substantially more cost-effective than traditional on premise
    software solutions that generally have higher deployment and
    support costs and require the customer to purchase and maintain
    the associated servers, storage, networks, security and disaster
    recovery solutions.
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The
    RealPage Solution
We provide a platform of on demand software solutions that
    integrates and streamlines rental property management business
    functions. Our solutions enable owners and managers of
    single-family and a wide variety of multi-family rental property
    types, including conventional, affordable, privatized military,
    student and senior housing, to manage their marketing, pricing,
    screening, leasing, accounting, purchasing and other property
    operations. These functions have traditionally been addressed by
    individual, disparate applications. Our solutions enable
    property owners and managers to increase revenues and reduce
    operating costs through higher occupancy, improved pricing
    methodologies, new sources of revenue from ancillary services,
    improved collections and more integrated and centralized
    business processes. Our solutions contribute to a more efficient
    property management process and an improved experience for all
    of the constituents involved in the rental housing ecosystem,
    including owners, managers, prospects, residents and service
    providers.
Benefits
    to Our Customers
The benefits of our solutions for our customers include the
    following:
Increased revenues.
Our solutions enable our
    customers to increase their revenues by improving their sales
    and marketing effectiveness, optimizing their pricing and
    occupancy and improving collection of rental payments, utility
    expenses, late fees and other charges.
Reduced operating costs.
Our solutions help
    our customers reduce costs by streamlining and automating many
    ongoing property management functions, centralizing and
    controlling purchasing by
on-site
personnel and transferring costs from the site to more efficient
    centrally managed operations. Our on demand delivery model also
    reduces owners' and managers' operating costs by
    eliminating their need to own and support the applications or
    associated hardware infrastructure. In addition, our integrated
    solutions reduce the initial implementation and training costs
    and ongoing support associated with multiple applications that
    each provide only components of the functionality provided by
    our solutions. This is particularly important for property
    owners and managers who want to reduce enterprise-class IT
    infrastructure, support and staff training.
Improved quality of service for residents and
    prospects.
Our solutions improve the level of
    service that property owners and managers provide to residents
    and prospects by enabling many transactions to be completed
    online, expediting the processing of rental applications,
    maintenance service requests and payments and increasing the
    frequency and quality of communication with residents and
    prospects, providing higher resident satisfaction and increased
    differentiation from competing properties that do not use our
    solutions.
Streamlined and simplified property management business
    processes.
Our on demand platform provides
    integrated solutions for managing a wide variety of property
    management processes that have traditionally been managed
    manually or through separate applications. Our solutions utilize
    common authentication that enables data sharing and workflow
    automation of certain business processes, thereby eliminating
    redundant data entry and simplifying many recurring tasks. The
    efficiency of our solutions allows onsite and corporate
    personnel to utilize their time more effectively and to focus on
    the strategic priorities of the business. We also make extensive
    use of online training courseware and our solutions are designed
    to be usable by new employees almost immediately after their
    hiring, addressing an acute need of the multi-family industry in
    which employee turnover is high.
Ability to integrate third-party products and
    services.
Our open architecture and application
    framework facilitate the integration of third-party applications
    and services into our solutions. This enables property managers
    to conduct these business functions through the same system that
    they already use for many of their other tasks and to leverage
    the same repository of prospect, resident and property data that
    supports our solutions.
Increased visibility into property
    performance.
Our integrated platform and common
    data repository enable owners and managers to gain a
    comprehensive view of the operational and financial performance
    of each of their properties. Our solutions provide a library of
    standard reports, dashboards, scorecards and alerts, and we also
    provide interfaces to several widely used report writers and
    business intelligence tools. In addition, our on demand delivery
    model makes it possible to deliver benchmark data aggregated
    across more than 10,000 properties, factor rental payment
    history into applicant screening processes and create more
    accurate supply/demand models and statistically based price
    elasticity models to improve price optimization.
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Simple implementation and support.
Our
    solutions include pre-configured extensions that meet the
    specific needs of a variety of property types and can be easily
    tailored by our customers to meet more specific requirements of
    their properties and business processes. We strive to minimize
    the need for professional consulting services to implement our
    solutions and train personnel.
Improved scalability.
We host our solutions
    for our customers, thereby reducing or eliminating our
    customers' costs associated with expanding or contracting
    IT infrastructure as their property portfolios evolve. We also
    bear the risk of technological obsolescence because we own and
    manage our data center infrastructure and are continually
    upgrading it to newer generations of technology without any
    incremental cost to our customers.
Competitive
    Strengths of our Solutions
The competitive strengths of our solutions are as follows:
Integrated on demand software platform based on a common data
    repository.
Our solutions are delivered through
    an integrated on demand software platform that provides a single
    point of access via the Internet with a common repository of
    prospect, resident and property data, which permits our
    solutions to access requested data through offline data transfer
    or in real-time.
Large and growing ecosystem of property owners, managers,
    prospects, residents and service
    providers.
Through December 31, 2009, we
    have established a customer base of over 5,000 customers who use
    one or more of our on demand software solutions to help manage
    the operations of approximately 4.6 million rental housing
    units. Our customers include nine of the ten largest
    multi-family property management companies in the United States,
    ranked as of January 1, 2009, based on number of units
    managed. Our solutions automate and streamline many of the
    recurring transactions and interactions among this large and
    expanding ecosystem of property owners and managers, prospects,
    residents and service providers, including prospect inquiries,
    applications, monthly rent payments and service requests. As the
    number of constituents of our ecosystem increases, the volume of
    data in our common data repository and its value to the
    constituents of our ecosystem grows.
Comprehensive platform of on demand software solutions for
    property management.
Our on demand property
    management systems and integrated software-enabled
value-added
services provide what we believe to be the broadest range of on
    demand capabilities for managing the resident lifecycle and core
    operational processes for residential property management. Our
    software-enabled
value-added
services provide complementary sales and marketing, asset
    optimization, risk mitigation, billing and utility management
    and spend management capabilities that collectively enable our
    customers to manage every stage of the resident lifecycle. In
    addition, we offer shared cloud services, including reporting,
    payment, document management and training functionality that are
    common to all of our product families. These comprehensive
    solutions enable us to address the needs of a wide range of
    property owners and managers across a broad range of rental
    housing property types.
Deep rental housing industry expertise.
We
    have been serving the rental housing industry exclusively for
    over 10 years and our 20 most senior management team
    members have an average of 16 years experience in the
    rental housing industry. We design our solutions based on our
    extensive rental housing industry expertise, insight into
    industry trends and developments and property management best
    practices that help our customers simplify the challenges of
    owning and managing rental properties.
Open cloud computing architecture.
Our cloud
    computing architecture enables our solutions to interface with
    our customers' existing systems and allows our customers to
    outsource the management of third-party business applications.
    This open architecture enables our customers to buy our
    solutions incrementally while continuing to use existing
    third-party solutions, allowing us to shorten sales cycles and
    increase adoption of our solutions within our target market.
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Our
    Strategy
We intend to leverage the breadth of our solutions and industry
    presence to solidify our position as a leading provider of on
    demand software solutions to the rental housing industry. The
    key elements of our strategy to accomplish this objective are as
    follows:
Acquire new customers.
We intend to actively
    pursue new customer relationships with property owners and
    managers that do not currently use our solutions. In addition to
    marketing our core property management systems, we will also
    seek to sell our software-enabled
value-added
services to customers of other third-party property management
    systems by utilizing our open architecture to facilitate
    integration of our solutions with those systems.
Increase the adoption of additional solutions within our
    existing customer base.
Many of our customers
    rely on our property management systems to manage their daily
    operations and track all of their critical prospect, resident
    and property information. Additionally, some of our customers
    utilize our software-enabled value-added services to complement
    third-party ERP systems. We have continually introduced new
    software-enabled
value-added
services to complement our property management systems and
    marketed our on demand property management systems to our
    customers who are utilizing third-party ERP systems. We believe
    that the penetration of our on demand software solutions to date
    has been modest and that there exists significant potential for
    additional on demand revenue from sales of our on demand
    software solutions to our customer base. We have significant
    opportunities to further leverage the critical role that our
    solutions play in our customers' operations by increasing
    the adoption of our on demand property management systems and
    software-enabled
value-added
services within our existing customer base, and we intend to
    actively focus on upselling and cross-selling our solutions to
    our customers.
Add new solutions to our platform.
We believe
    that we offer the most comprehensive platform of on demand
    software solutions for the rental housing industry. The breadth
    of our platform enables our customers to control many aspects of
    the residential rental property management process. We have a
    unique opportunity to add new capabilities that further enhance
    our platform, and we intend to continue developing and
    introducing new solutions to sell to both new and existing
    customers. These solutions may include localized solutions to
    support our customers as they grow their international
    operations. We also intend to develop new relationships with
    third-party application providers that can use our open
    architecture to offer additional product and service
    capabilities to their customers through the use of our platform.
Pursue acquisitions of complementary businesses, products and
    technologies.
Since March 2005, we have completed
    nine acquisitions that have enabled us to expand our platform,
    enter into new rental property markets and expand our customer
    base. We intend to continue to selectively evaluate
    opportunities to acquire businesses and technologies that may
    help us accomplish these and other strategic objectives.
Products
    and Services
Our platform consists of our property management systems and
    five families of software-enabled
value-added
services. Our software-enabled value-added services provide
    complementary sales and marketing, asset optimization, risk
    mitigation, billing and utility management and spend management
    capabilities that collectively enable our customers to manage
    the stages of the resident lifecycle. Each of our property
    management systems and our software-enabled value-added services
    include multiple product centers that provide distinct
    capabilities and can be licensed separately or as a bundled
    package. Each product center is integrated with a central
    repository of prospect, resident and property data.
Our platform also includes a set of shared cloud services,
    including reporting, payment, document management and training
    functionality that are common to all of our product families.
    Third-party applications can access our property management
    systems using either Online Data Exchanges or Site Data
    Exchanges, which we refer to as AppConnectors.
Our platform is designed to serve as a single system of record
    for all of the constituents of the rental housing ecosystem,
    including owners, managers, prospects, residents and service
    providers, and to support the entire resident lifecycle, from
    prospect to applicant to residency to post-residency. Common
    authentication, work flow and user experience across product
    families enables each of these constituents to access different
    applications as appropriate for their role.
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We offer different versions of our platform for different types
    of properties. For example, our platform supports the specific
    and distinct requirements of:
•
conventional single-family properties (four units or less);
•
conventional multi-family properties (five or more units);
•
affordable Housing and Urban Development, or HUD, properties;
•
affordable tax credit properties;
•
privatized military housing;
•
student housing; and
•
senior living.
Property
    Management Systems
Our property management systems are typically referred to as
    Enterprise Resource Planning, or ERP, systems. These solutions
    manage core property management business processes, including
    leasing, accounting, purchasing and facilities management, and
    include a central database of prospect, applicant, resident and
    property information that is accessible in real time by our
    other solutions. Our property management systems also interface
    with most popular general ledger accounting systems through
    AppConnectors to products offered by AMSI Property Management
    (owned by Infor Global Solutions, Inc.), Microsoft Corporation,
    MRI Software, LLC, Yardi Systems, Inc. and many others. This
    makes it possible for customers to deploy our solutions using
    our accounting system or a third-party accounting system.
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OneSite
OneSite is our flagship on demand property management system for
    multi-family properties. OneSite includes eleven individual
    product centers. Seven versions of OneSite are tailored to the
    specific needs of conventional single-family, conventional
    multi-family, affordable HUD, affordable tax credit, privatized
    military housing, student housing and senior living properties.
Product Center
Key Functionality
OneSite Leasing & Rents
Prospects, generates, presents and records price quotations,
    generates lease documents, schedules move-ins and posts
    financial transactions to the resident ledger for both new
    residents and renewal of existing resident leases.  Seven
    versions support the unique needs of our target residential
    rental markets.
OneSite Facilities
Manages asset warranties, service requests and unit turnovers so
    that when a resident moves out, the resident ledger is
    automatically updated with any damages to be incorporated into
    the resident's final account statement.
OneSite Purchasing
Manages work orders and procurement activities and calculates
    operating budget variances.
OneSite Accounting
Provides back-office general ledger, accounts payable and cash
    management functions.  We license OneSite Accounting from a
    third-party accounting software provider and have modified it to
    meet the needs of the rental housing industry.
OneSite Budgeting
Enables owners and managers to budget property performance and
    transfer budgets into the general ledger.
Propertyware
Propertyware is our on demand property management system for
    single-family properties and small, centrally managed
    multi-family properties. Propertyware consists of four product
    centers including accounting, maintenance and work order
    management, marketing spend management and portal services. In
    addition, we offer our screening and payment solutions through
    our Propertyware brand to single-family and small centrally
    managed multi-family properties.
Other
    Property Management Systems
We also offer six additional on premise property management
    systems — RentRoll, HUDManager, Tenant Pro, Spectra,
    i-CAM, and Management Plus. RentRoll serves small conventional
    apartment communities. HUDManager serves small HUD, Rural
    Housing Services and tax credit subsidized apartment
    communities. Tenant Pro serves the needs of small conventional
    properties. Spectra is a conventional apartment and commercial
    modular property management system that primarily serves both
    the U.S. and the Canadian markets. i-CAM and Management Plus
    property management software automates and streamlines rental
    activities for affordable housing.
Most of our RentRoll and HUDManager on premise customers have
    migrated to our on demand property management systems. Four of
    our additional on premise property management
    systems — Tenant Pro, Spectra,
i-CAM
and
    Management Plus — were acquired in February 2010. Over
    time, we expect many customers of these on premise property
    management systems to migrate to our on demand OneSite or
    Propertyware systems; however, we will continue to support our
    on premise property management systems for the foreseeable
    future and integrate our software-enabled value-added services
    into them.
Collectively, our on premise property management systems
    represented less than 2.7% of our total revenue in 2009 and we
    expect that our on premise property management systems,
    including the revenue
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attributable to the on premise property management systems that
    we acquired in February 2010, will represent less than 5% of our
    total revenue in 2010.
Software-Enabled
    Value-Added Services
In addition to property management systems, we offer
    software-enabled value-added services consisting of five product
    families and 22 product centers that provide complementary sales
    and marketing, asset optimization, risk mitigation, billing and
    utility management and spend management capabilities. Our
    software-enabled value-added services are tightly integrated
    with our OneSite property management system, and we are actively
    integrating them with our other property management systems.
CrossFire
    (Sales & Marketing Systems)
The CrossFire product family is usually referred to as a
    customer relationship management, or CRM, system. It includes
    product centers that manage marketing and leasing operations and
    enable owners and managers to originate, capture, track, manage
    and close more leads.
Product Center
Key Functionality
CrossFire Content Management System
Provides a central repository of property marketing and listing
    content, including descriptions, photos, video or animated
    tours, floor plans and site plans.
CrossFire Contact Center
Provides call and email routing technology and agent staffing on
    a permanent or overflow basis to answer phone calls and emails
    from prospects or residents.
CrossFire Leasing Portal
Enables owners and managers to create customized property
    websites with rich content and search capabilities and list them
    on various Internet listing services and search engines.
CrossFire Resident Portal
Provides a portal that enables residents to view community
    events, enter or check the status of service requests, review
    statements, pay rent online and renew leases.
CrossFire Studio
Provides advertising and marketing planning services through a
    talented team of multi-family marketing experts including
    advertising placement and performance evaluation, leasing and
    renewal campaign design and marketing consulting services.
YieldStar
    (Asset Optimization Systems)
Rental housing property rents have traditionally been set by
    owners and managers based on their knowledge of the market and
    other intangible or intuitive criteria. YieldStar is a
    scientific yield management system, similar to those used in the
    airline and hotel industries, that enables owners and managers
    to optimize rents to achieve the overall highest yield, or
    combination of rent and occupancy, at each property.
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Product Center
Key Functionality
YieldStar Price Optimizer
Uses current customer and market data and statistically derived
    supply/demand forecasts and price elasticity models to calculate
    and present optimal prices for each rental unit.
YieldStar Pricing Advisory Services
Offers outsourced pricing management advisory services for
    owners and managers who want to utilize Price Optimizer without
    incurring the costs to staff and support it in-house.
M/PF Research
Provides multi-family housing market research through a
    well-established and trusted name in multi-family market
    intelligence. The M/PF Research database includes monthly and
    quarterly information on occupancy and rents for more than
    36,000 rental housing properties in the United States
    representing 284 defined metropolitan statistical areas as of
    February 2010.
LeasingDesk
    (Risk Mitigation Systems)
LeasingDesk risk mitigation systems enable rental housing
    property owners and managers to reduce delinquency, liability
    and property damage risk.
Product Center
Key Functionality
LeasingDesk Screening
Evaluates an applicant's credit using a scoring model
    calibrated to predict resident default and payment behavior by
    leveraging our proprietary database of resident rental payment
    history generated from our property management systems.
Criminal Background Services
Ascertains if a prospective resident has committed a crime or
    been evicted from a previous apartment by accessing databases
    that are aggregated from third-party data providers.
Credit Optimizer
Allows owners and managers to optimize credit thresholds based
    on occupancy levels and adjust deposit and rent amounts based on
    the default risk of the resident in a yield neutral manner.
    Credit Optimizer is expected to remain in beta testing
    throughout 2010.
LeasingDesk Insurance Services
Offers liability and renter's insurance. Liability policies
    protect owners and managers against financial loss due to
    resident-caused damage, while renter's insurance provides
    additional coverage for resident personal belongings in the
    event of loss.
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Velocity
    (Billing and Utility Management Services)
Velocity offers a complete range of billing and utility
    management services.
Product Center
Key Functionality
Convergent Billing Services
Provides automated monthly invoicing services enabling owners
    and managers to increase collections by sending each resident a
    monthly invoice that combines rent, small balances and utility
    charges onto a single invoice.
Energy Recovery Services
Provides automated utility billing services to enable owners and
    managers to detect and collect utility costs that are the
    residents' responsibility.
Infrastructure Services
Provides contractor services to install electric, gas and water
    meters in apartment communities through three individual product
    centers.  Velocity also provides consulting services to assist
    owners and managers in implementing and managing energy, media,
    data and telecom services at their communities.
OpsTechnology
    (Spend Management Systems)
OpsTechnology offers spend management systems that enable owners
    and managers to better control costs.
Product Center
Key Functionality
OpsBuyer
Integrates purchase orders, onsite accounts payable, automated
    workflow approval (including mobile approvals), budget and spend
    limit control, centralized expense reporting tools and document
    management through our on demand spend management tool.
OpsMarket
Enables owners and managers to create private marketplaces to
    manage the transactions between their properties and their
    preferred suppliers and service providers through our on demand
    eProcurement solution.
OpsInvoice
Provides an on demand invoice management solution that
    centralizes the processing of both electronic and paper invoices
    across the owner's or manager's portfolio.
OpsAdvantage
Offers a catalog of negotiated discounts for selected vendors
    across several major purchasing categories for owners and
    managers that are too small to negotiate volume discounts.
OpsBid
Provides an on demand procurement system used primarily for
    larger capital and rehab related purchases that are not ordered
    regularly.
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Shared
    Cloud Services
We offer shared cloud services that are tightly integrated with
    our property management systems and software-enabled valued
    added services.
Cloud Services
Key Functionality
Portfolio Reporting
Aggregates the data from our other solutions and third-party
    applications and gives owners and managers access to business
    critical reports and actionable analytical information about the
    performance of their properties.
Document Management
Provides storage, retrieval, security, and archiving of all
    documents and forms associated with a property management
    company's business processes and procedures.
Payment Processing
Enables owners and managers to collect rent and other payments
    electronically from residents through check, money order,
    automated clearing house, or ACH, or credit/debit card.
Online Learning
Allows owners and managers to train geographically dispersed
    employees in a cost-effective and timely fashion, and allows
    employees to complete their coursework at their convenience.
The
    RealPage Cloud
We operate a robust application infrastructure, marketed to our
    customers as The RealPage Cloud, which supports the delivery of
    our solutions and also allows owners and managers to outsource
    portions of their IT operations. The RealPage Cloud operates
    over redundant 10GBPS dedicated fiber links connecting two data
    centers containing hundreds of servers and multiple storage area
    networks. This architecture makes it possible to expand the data
    center incrementally with little or no disruption as more users
    or additional applications are added. The RealPage Cloud
    consists of more than 1,300 virtual servers, 350 physical
    servers and 400 terabytes of data. The RealPage Cloud spans
    approximately 30,000 locations and processes an average of
    15 million transactions per day and, at peak times,
    supports over 75,000 unique users.
The RealPage Cloud is based on an open architecture that enables
    third-party applications to access OneSite using either Online
    Data Exchanges or Site Data Exchanges, which we refer to as
    AppConnectors. Today, we maintain more than 150 different public
    and private AppConnectors interfacing with a variety of
    third-party applications and processing hundreds of thousands of
    transactions per day. These AppConnectors enable our cloud
    services to access and interface with third-party property
    management system data to one or more of our software-enabled
value-added
services.
In addition, our system is designed to replicate data into a
    Universal Data Store, or UDS, each day. Access to UDS is enabled
    through an access layer called UDS Direct, which enables
    customers to build portfolio reports, dashboards and alerts
    using any Open Database Connectivity or Java Database
    Connectivity compliant report writer tool such as Microsoft
    Excel, Microsoft Access, Microsoft SQL Server Reporting Service
    or Crystal Reports. UDS is also transmitted to a number of our
    larger customers each night to feed portfolio reporting systems
    that they have built internally.
As of December 31, 2009, we employed 45 professionals who
    are responsible for maintaining data security, integrity,
    availability, performance and business continuity in our cloud
    computing facilities. We annually conduct two major audits of
    our cloud computing infrastructure, including SAS 70
    Type II and Payment Card Industry, or PCI, audits. In
    addition, certain customers conduct separate business continuity
    audits of their own.
In addition to our production data centers, we manage a separate
    development and quality assurance testing facility used to
    control the pre-production testing required before each new
    release of our on demand
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software. We typically deploy new releases of the software
    underlying our on demand software solutions on a monthly or
    quarterly schedule depending on the solution.
Professional
    Services
We have developed repeatable, cost-effective consulting and
    implementation services to assist our customers in taking
    advantage of the capabilities enabled by our platform. Our
    consulting and implementation methodology leverages the nature
    of our on demand software architecture, the industry-specific
    expertise of our professional services employees and the design
    of our platform to simplify and expedite the implementation
    process. Our consulting and implementation services include
    project and application management procedures, business process
    evaluation, business model development and data conversion. Our
    consulting teams work closely with customers to ensure the
    smooth transition and operation of our systems.
We also offer a variety of training programs through our Online
    Learning Services for training administrators and onsite
    property managers on the use of our solutions and on current
    issues in the property management industry. Training options
    include regularly hosted classroom and online instruction
    (through our online learning courseware) as well as online
    seminars, or webinars. We also enable our customers to integrate
    their own training content with our content to deliver an
    integrated and customized training program for their on-site
    property managers.
Product
    Support
We offer product support services that provide our customers
    with assistance from our product support professionals by phone
    or email in resolving issues with our solutions. We offer three
    product support options: Standard, Frontline and Platinum. The
    Standard option includes product support during business hours.
    The Frontline option includes the features of the Standard
    option plus escalation to senior support representatives. The
    Platinum option includes the features of the Frontline option
    plus emergency product support on Saturdays and a designated
    senior product support liaison. Technology support is also
    available for consultations on firewalls, communications,
    security measures (including virus alerts), workstation
    configuration and disaster recovery options.
We also sponsor the RealPage User Group to facilitate
    communications between us and our community of users. The
    RealPage User Group is governed by a steering committee of our
    customers, which consists of two elected positions and
    subcommittee chairs, each representing a RealPage product center
    or group of product centers.
Product
    Development
We devote a substantial portion of our resources to developing
    new solutions and enhancing existing solutions, conducting
    product testing and quality assurance testing, improving core
    technology and strengthening our technological expertise in the
    rental housing industry. We typically deploy new releases of the
    software underlying our on demand software solutions on a
    monthly or quarterly schedule depending on the solution. As of
    December 31, 2009, our product development group consisted
    of 214 employees in North America and 44 employees
    located in Hyderabad, India. Product development expense totaled
    $21.7 million, $28.8 million and $27.4 million
    for 2007, 2008 and 2009, respectively.
Sales and
    Marketing
We sell our software and services through our direct sales
    organization. As of December 31, 2009, we employed 75 sales
    representatives. Our sales force is organized by geographic
    region and divided into teams based on the size of our
    prospective customers and property type. This focus provides a
    higher level of service and understanding of our customers'
    unique needs. Our typical sales cycle with a prospective
    customer begins with the generation of a sales lead through
    Internet marketing, tele-sales efforts, trade shows or other
    means of referral. The sales lead is followed by an assessment
    of the customer's requirements, sales presentations and
    product demonstrations. Our sales cycle can vary substantially
    from customer to customer, but typically requires three to six
    months for larger customers and one to six weeks for smaller
    customers.
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In addition to new customer sales, we sell additional solutions
    and consulting services to our existing customers to help them
    more efficiently and effectively manage their properties as the
    rental housing market evolves and competitive conditions change.
We generate customer leads, accelerate sales opportunities and
    build brand awareness through our marketing programs. Our
    marketing programs target property management company
    executives, technology professionals and senior business
    leaders. Our marketing team focuses on the unique needs of
    customers within our target markets. Our marketing programs
    include the following activities:
•
field marketing events for customers and prospects;
•
participation in, and sponsorship of, user conferences, trade
    shows and industry events;
•
customer programs, including user meetings and our online
    customer community;
•
online marketing activities, including email campaigns, online
    advertising, web campaigns, webinars and use of social media,
    including blogging, Facebook, and Twitter;
•
public relations; and
•
use of our website to provide product and company information,
    as well as learning opportunities for potential customers.
We host our annual user conference where customers both
    participate in and deliver a variety of programs designed to
    help accelerate business performance through the use of our
    integrated platform of solutions. The conferences feature a
    variety of customer speakers, panelists and presentations
    focused on businesses of all sizes. The event also brings
    together our customers, technology vendors, service providers
    and other key participants in the rental housing industry to
    exchange ideas and best practices for improving business
    performance. Attendees gain insight into our product plans and
    participate in interactive sessions that give them the
    opportunity to provide input into new features and functionality.
Strategic
    Relationships
We maintain relationships with a variety of technology vendors
    and service providers to enhance the capabilities of our
    integrated platform of solutions. This approach allows us to
    expand our platform and customer base and to enter new markets.
    We have established the following types of strategic
    relationships:
Technology
    Vendors
We have relationships with a number of leading technology
    companies whose products we integrate into our platform or offer
    to complement our solutions. The cooperative relationships with
    our software and hardware technology partners allow us to build,
    optimize and deliver a broad range of solutions to our customers.
Service
    Providers
We have relationships with a number of service providers that
    offer complementary services that integrate into our platform
    and address key requirements of rental property owners and
    managers, including credit card and ACH services, transaction
    processing capabilities and insurance underwriting services.
Customers
We are committed to developing long-term customer relationships
    and working closely with our customers to configure our
    solutions to meet the evolving needs of the rental housing
    industry. Our customers include REITs, leading property
    management companies, fee managers, regionally based owner
    operators and service providers. As of December 31, 2009,
    we had 5,032 customers who used one or more of our on demand
    software solutions to help manage the operations of
    approximately 4.6 million rental housing units. Our
    customers include nine of the ten largest multi-family property
    management companies in the United States,
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ranked as of January 1, 2009, based on number of units
    managed. For the years ended December 31, 2007, 2008 and
    2009, no one customer accounted for more than 5% of our revenue.
See Note 2 to Notes to Consolidated Financial Statements
    for the year ended December 31, 2009 for further
    information regarding measurement of our international revenue
    and location of our long-lived assets.
Competition
We face competition primarily from point solution providers
    including traditional software vendors and other on demand
    software providers. To a lesser extent, we also compete with
    internally developed and maintained solutions. Our competitors
    vary depending on our solution. Our current principal
    competitors include:
•
in the multi-family ERP market, AMSI Property Management (owned
    by Infor Global Solutions, Inc.), MRI Software LLC and Yardi
    Systems, Inc. and, in the single-family ERP market, AppFolio,
    Inc.;
•
in the applicant screening market, ChoicePoint Inc. (a
    subsidiary of Reed Elsevier Group plc), First Advantage
    Corporation (a subsidiary of The First American Corporation),
    TransUnion Rental Screening Solutions, Inc. (a subsidiary of
    TransUnion LLC) and Yardi Systems, Inc. (following its
    recent acquisition of RentGrow Inc., an applicant screening
    provider);
•
in the insurance market, Assurant, Inc. and a number of national
    insurance underwriters (including GEICO Corporation) that market
    renters insurance;
•
in the CRM market, contact center and call tracking service
    providers Call Source Inc., Level One, Inc., Yardi Systems,
    Inc. (which recently announced its intention to build a call
    center) and numerous regional and local call centers, lead
    tracking solution providers eReal Estate Integration, Inc., Lead
    Tracking Solutions (a division of O.C. Concepts, Inc.) and
    Who's Calling, Inc., content syndications and reservations
    systems providers eReal Estate Integration, Inc. and Realty
    DataTrust Corporation and companies providing web portal
    services, including Apartments24-7.com, Inc., Ellipse
    Communications, Inc., Property Solutions International, Inc.,
    Spherexx.com and Yardi Systems, Inc.;
•
in the utility billing market, American Utility Management,
    Inc., Conservice, LLC, ista North America, Inc., NWP Services
    Corporation and Yardi Systems, Inc. (following its recent
    acquisition of Energy Billing Systems, Inc.);
•
in the revenue management market, PROS Holdings, Inc., The
    Rainmaker Group, Inc. and Yardi Systems, Inc.; and
•
in the payment processing space, Chase Paymentech Solutions, LLC
    (a subsidiary of JPMorgan Chase & Co.), First Data
    Corporation, Fiserv, Inc., MoneyGram International, Inc., NWP
    Services Corporation, Property Solutions International, Inc.,
    RentPayment.com (a subsidiary of Yapstone, Inc.), Yardi Systems,
    Inc. and a number of national banking institutions.
The principal competitive factors in our industry include total
    cost of ownership, ease of implementation, product functionality
    and scope, performance, security, scalability and reliability of
    service, brand and reputation, sales and marketing capabilities
    and financial resources of the provider. We believe that we
    compete favorably with our competitors on the basis of these
    factors. We also believe that none of our more significant
    competitors currently offer a more comprehensive or integrated
    on demand software solution. However, some of our existing
    competitors have greater name recognition, longer operating
    histories, larger installed customer bases, larger sales and
    marketing budgets, as well as greater financial, technical and
    other resources.
Intellectual
    Property
We rely on a combination of copyright, trademark and trade
    secret laws, as well as confidentiality procedures and
    contractual restrictions, to establish and protect our
    proprietary rights. These laws, procedures and restrictions
    provide only limited protection. We currently have no issued
    patents or pending patent applications. In the future, we may
    file patent applications, but patents may not be issued with
    respect to these patent applications, or if
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patents are issued, they may not provide us with any competitive
    advantages, may not be issued in a manner that gives us the
    protection that we seek and may be successfully challenged by
    third parties.
We endeavor to enter into agreements with our employees and
    contractors and with parties with whom we do business in order
    to limit access to and disclosure of our proprietary
    information. We cannot be certain that the steps we have taken
    will prevent unauthorized use or reverse engineering of our
    technology. Moreover, others may independently develop
    technologies that are competitive with ours or that infringe on
    our intellectual property. The enforcement of our intellectual
    property rights also depends on any legal actions against these
    infringers being successful, but these actions may not be
    successful, even when our rights have been infringed.
Furthermore, effective patent, trademark, trade dress, copyright
    and trade secret protection may not be available in every
    country in which our solutions are available over the Internet.
    In addition, the legal standards relating to the validity,
    enforceability and scope of protection of intellectual property
    rights are uncertain and still evolving.
Employees
As of December 31, 2009, we had approximately 1,141
    employees. We consider our current relationship with our
    employees to be good. Our employees are not represented by a
    labor union and are not subject to a collective bargaining
    agreement.
Facilities
We currently lease approximately 184,000 square feet of
    space for our corporate headquarters and data center in
    Carrollton, Texas under lease agreements that expire in August
    2016. We also license data center space and collocation services
    at a facility in Dallas, Texas for our secondary data center. We
    have offices in Tulsa, Oklahoma; Irvine, California;
    San Francisco, California; San Diego, California;
    Williston, Vermont; Mason, Ohio; Atlanta, Georgia;
    Washington, D.C.; Winnipeg, Manitoba, Canada and Hyderabad,
    India. We believe our current and planned data centers and
    office facilities will be adequate for the foreseeable future.
Legal
    Proceedings
From time to time, we have been and may be involved in various
    legal proceedings arising from our ordinary course of business.
On June 15, 2009, a prospective resident of one of our
    customers filed a class action lawsuit styled
Minor v.
    RealPage, Inc.
against us in the U.S. District Court
    for the Central District of California. By the parties'
    mutual stipulation in August 2009, the action was transferred to
    the U.S. District Court for the Eastern District of Texas
(No. 4:09CV-00439).
The plaintiff has alleged two individual claims and three
class-based
causes of action against us. Individually, the plaintiff alleges
    that we (i) willfully failed to employ reasonable
    procedures to ensure the maximum accuracy of our resident
    screening reports as required by 15 U.S.C.
    § 1681e(b) and, in the alternative,
    (ii) negligently (within the meaning of 15 U.S.C.
    § 1681o(a)) failed to employ reasonable procedures to
    ensure the maximum accuracy of our resident screening reports,
    as required by 15 U.S.C. § 1681e(b), in each case
    stemming from our provision of a report that allegedly included
    inaccurate criminal conviction information. The plaintiff seeks
    actual, statutory and punitive damages on her individual claims.
    In her capacity as the putative class representative, the
    plaintiff also alleges that we: (i) willfully failed to
    provide legally mandated disclosures upon a consumer's
    request inconsistent with 15 U.S.C. § 1681g;
    (ii) willfully failed to provide prompt notice of
    consumers' disputes to the data furnishers who provided us
    with the information whose accuracy was in question, as required
    by 15 U.S.C. §§ 1681i(a)(2); and
    (iii) willfully failed to provide prompt notice of
    consumers' disputes to the consumer reporting agencies
    providing us with the information whose accuracy was in
    question, as required by
    15 U.S.C. § 1681i(f). The plaintiff seeks
    certification of three separate classes in connection with these
    claims. She also seeks statutory and punitive damages, a
    declaration that our practices and procedures are in violation
    of the Fair Credit Reporting Act and attorneys' fees and
    costs. Because this lawsuit is at an early stage, it is not
    possible to predict its outcome. We believe that we have
    meritorious defenses to the claims in this case and intend to
    defend it vigorously.
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In January 2007, plaintiffs filed five separate but nearly
    identical class action lawsuits in the U.S. District Court
    for the Eastern District of Texas against more than 100
    defendants. We were named as a defendant in one of those
    actions, Taylor, et al. v. Safeway, Inc., et al.
(No. 2:07-CV-00017).
On March 4, 2008, the Court consolidated these actions with
    the lead case,
Taylor, et al. v. Acxiom Corp.,
et
    al.
(No. 2:07-CV-00001).
In their operative pleading, plaintiffs alleged that we obtained
    and held motor vehicle records in bulk from the State of Texas,
    an allegedly improper purpose in violation of the federal
    Driver's Privacy Protection Act, or the DPPA. In addition,
    the plaintiffs alleged that we obtained these records for the
    purpose of re-selling them, another allegedly improper purpose
    in violation of the DPPA. Plaintiffs further purported to
    represent a putative class of approximately 20.0 million
    individuals affected by the defendants' alleged DPPA
    violations. They sought statutory damages of $2,500 per each
    violation of the DPPA, punitive damages and an order requiring
    defendants to destroy information obtained in violation of the
    DPPA. In September 2008, the Eastern District of Texas dismissed
    plaintiffs' complaint for failure to state a claim. The
    plaintiffs subsequently appealed the dismissal to the
    U.S. Court of Appeals for the Fifth Circuit. The primary
    issue on appeal is whether plaintiffs alleged any
injury-in-fact
that would give them standing to bring their claims. Predicate
    issues include whether obtaining and merely holding data states
    a claim under the DPPA, and whether re-selling data likewise
    states an actionable claim. In November 2009, the Fifth Circuit
    heard oral argument on the appeal. A decision has not yet been
    rendered. We believe that we have meritorious defenses to the
    claims in this case and intend to defend it vigorously.
In March 2010, the District Attorney of Ventura County,
    California issued an administrative subpoena to us seeking
    certain information related to our provision of utility billing
    services in the State of California. A representative of the
    District Attorney has informed us that the subpoena was issued
    in connection with a general investigation of industry practices
    with respect to utility billing in California. Utility billing
    in California is subject to regulation by state law and various
    state administrative agencies, including the California Public
    Utility Commission, or the CPUC, and the Division of Weights and
    Measures, or the DWM. We have provided the District Attorney
    with the information requested in the subpoena. As of
    April 28, 2010, the District Attorney's office has not
    initiated an administrative or other enforcement action against
    us, nor have they asserted any violations of the applicable
    regulations by us. Given the early stage of this investigation,
    it is difficult to predict its outcome and whether the District
    Attorney will pursue an administrative or other enforcement
    action against us in the State of California and what the result
    of any such action would be. However, penalties or assessments
    of violations of regulations promulgated by the CPUC or DWM may
    be calculated on a per occurrence basis. Due to the large number
    of billing transactions we process for our customers in
    California, our potential liability in an enforcement action
    could be significant. If the District Attorney ultimately
    pursues an administrative or other enforcement action against
    us, we believe that we have meritorious defenses to the
    potential claims and would defend them vigorously. However, even
    if we were successful in defending against such claims, the
    proceedings could result in significant costs and divert
    management's attention.
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MANAGEMENT
Executive
    Officers and Directors
Our executive officers and directors and their ages and
    positions as of April 1, 2010 are set forth below:
Name
Age
Position(s)
Stephen T. Winn
63
Chairman of the Board, Chief Executive Officer and Director
Timothy J. Barker
47
Chief Financial Officer and Treasurer
Dirk D. Wakeham
44
President
Ashley Chaffin Glover
38
Executive Vice President, Multifamily Solutions
Jason D. Lindwall
39
Chief Operations Officer
William E. Van Valkenberg
63
Chief Legal Officer and Secretary
Alfred R. Berkeley, III
(1),(2)
65
Director
Richard M. Berkeley
(2),(3)
57
Director
Peter Gyenes
(1),(2),(3)
64
Director
Jeffrey T. Leeds
(3)
54
Director
Jason A. Wright
(1),(2),(3)
38
Director
(1)
Member of our audit committee.
(2)
Member of our compensation committee.
(3)
Member of our nominating and governance committee
Stephen T. Winn
has served as our Chief Executive
    Officer, Chairman of the Board and a member of our board of
    directors since November 1998. From November 1998 to
    December 2009, Mr. Winn also served as our President. From
    January 1998 to March 1999, Mr. Winn served in various
    executive positions, including President of Research Institute
    of America, a provider of information services to the accounting
    industry and a wholly owned subsidiary of Thomson Reuters
    Corporation. From June 1969 to January 1998, Mr. Winn
    served as President and Chief Executive Officer of Computer
    Language Research Inc., a publicly traded company focused on tax
    compliance, tax research and accounting software, which was
    acquired by Thomson Reuters Corporation. Mr. Winn is a
    member of the board of directors of the National Multi Housing
    Council. In January 2002, he was one of five people recognized
    by the National Apartment Association as a leader in the
    multi-family industry. Mr. Winn received his B.S. in
    electrical engineering from The University of Texas at Austin
    and his M.S. in management from Stanford University. In addition
    to Mr. Winn's role as our Chief Executive Officer, we
    believe Mr. Winn's qualifications to serve on our
    board of directors include his previous service in executive
    positions at various public and private technology companies and
    his extensive experience in the multi-family rental housing
    industry.
Timothy J. Barker
has served as our Chief Financial
    Officer and Treasurer since he joined us in October 2005. Prior
    to joining us, Mr. Barker served from March 2003 to
    September 2005 as Chief Financial Officer of etalk Corporation,
    a provider of enterprise class contact management performance
    solutions. From August 2000 to March 2003, Mr. Barker
    worked as an independent consultant and provided chief financial
    officer consulting services to public and private companies.
    From November 1995 to July 2000, Mr. Barker held various
    positions at F.Y.I. Incorporated, a document and information
    outsourcing solution provider, including Executive Vice
    President and Chief Financial Officer. Mr. Barker received
    his B.B.A. in accounting from Texas Tech University and has been
    a Certified Public Accountant in the state of Texas since 1985.
Dirk D. Wakeham
has served as our President since
    December 2009 and previously served as our Executive Vice
    President, Property Solutions, from January 2009 to November
    2009 and our Senior Vice President, President, LeasingDesk Risk
    Mitigation Systems, from April 2007 to December 2008. Prior to
    joining us in April 2007, Mr. Wakeham was the Founder,
    President and Chief Executive Officer of Multifamily Internet
    Ventures, LLC, which he founded in 2001 and we acquired in April
    2007. He also previously served as Senior Vice President at
    Western National Group, where he was responsible for the
    management and
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deployment of enterprise systems focused on the management and
    operation of a diverse multi-family portfolio. Mr. Wakeham
    received his B.A. in business administration from California
    State University, Fullerton.
Jason D. Lindwall
has served as our Chief Operations
    Officer since joining us in April 2008. Prior to joining us,
    Mr. Lindwall held various positions, including Chief
    Information Officer, at Aspen Square Management, Inc. from
    December 1993 to February 2008. Mr. Lindwall received his
    B.S. in business administration computer information systems
    from Western New England College.
William E. Van Valkenberg
has served as our Chief Legal
    Officer and Secretary since joining us in September 2009. Prior
    to joining us, Mr. Van Valkenberg worked as an executive
    consultant from January 2009 to September 2009 and provided
    consulting services to us from July 2009 to
    September 2009. From February 2006 to
    November 2008, Mr. Van Valkenberg was a senior
    executive and Chief Legal Officer of DayJet Corporation, an
    early stage regional on demand jet service. While Mr. Van
    Valkenberg was employed by DayJet Corporation, it filed a
    voluntary petition for Chapter 7 bankruptcy in
    November 2008. Mr. Van Valkenberg has also been outside
    counsel to public and private businesses with several law firms,
    most recently Holland & Knight LLP, where he was a
    partner from June 2002 to February 2006. Mr. Van Valkenberg
    received his B.A. in economics from the University of Washington
    and his J.D. from the University of Utah S.J. Quinney College of
    Law.
Ashley Chaffin Glover
has served as our Executive Vice
    President, Multifamily Solutions since January 2010 and
    previously served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior
    Vice President, President, Velocity Utility and Billing
    Services, from March 2005 until April 2009. From November
    2004 through early March 2005, Ms. Chaffin Glover served us
    in a consulting capacity in conjunction with our acquisition of
    The Pleco Group, LLC. From August 1995 to July 1997 and again
    from August 1999 to July 2003, Ms. Chaffin Glover handled
    both international and domestic assignments for
    McKinsey & Company. Ms. Chaffin Glover received
    her B.S. in computer science from Southern Methodist University
    and her M.B.A. from Harvard University.
Alfred R. Berkeley, III
has served as a member of
    our board of directors since December 2003 and as Chairman of
    our audit committee since January 2004. Mr. Berkeley
    currently serves as the Chairman of Pipeline Financial Group,
    Inc., the parent of Pipeline Trading Systems LLC, a block
    trading brokerage service, which he joined in December 2003.
    From December 2003 to March 2010, Mr. Berkeley also served
    as the Chief Executive Officer of Pipeline Financial Group, Inc.
    He also serves as Vice-Chairman of the National Infrastructure
    Advisory Council for the President of the United States, a
    trustee of Johns Hopkins University and a member of the Johns
    Hopkins University Applied Physics Laboratory, LLC. He formerly
    served as Vice Chairman of the Nomination Evaluation Committee
    for the National Medal of Technology and Innovation, which makes
    candidate recommendations to the Secretary of Commerce. He was
    appointed Vice Chairman of the NASDAQ Stock Market, Inc. in July
    2000, serving through July 2003, and served as President of
    NASDAQ from 1996 until 2000. From 1972 to 1996,
    Mr. Berkeley served in a number of capacities at Alex.
    Brown & Sons Incorporated, which was acquired by
    Bankers Trust New York Corporation and later by Deutsche Bank
    AG. Most recently, he was Managing Director in the corporate
    finance department where he financed computer software and
    electronic commerce companies. He joined Alex. Brown &
    Sons Incorporated as a Research Analyst in 1972 and became a
    general partner in 1983. From 1985 to 1987, he served as Head of
    Information Services for the firm. From 1988 to 1990,
    Mr. Berkeley took a leave of absence from Alex.
    Brown & Sons Incorporated to serve as President and
    Chief Executive Officer of Rabbit Software Inc., a public
    telecommunications software company. He served as a captain in
    the United States Air Force and a major in the United States Air
    Force Reserve. Mr. Berkeley also served as a director of
    Webex Communications, Inc., which was acquired by Cisco Systems,
    Inc. (NASDAQ: CSCO) in May 2007. Mr. Berkeley also served
    as a director of Kintera, Inc. until May 2008, when it was
    acquired by Blackbaud, Inc. (NASDAQ: BLKB). Mr. Berkeley
    served as a director of the National Research Exchange, Inc., a
    registered broker dealer, until it ceased operations in December
    2007. Mr. Berkeley also serves as a director of several
    private companies. Mr. Berkeley received his B.A. in
    English from the University of Virginia and his M.B.A. from The
    Wharton School of the University of Pennsylvania. We believe
    Mr. Berkeley's qualifications to serve on our board of
    directors include his extensive experience in corporate finance
    and securities matters, including
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his experience as Chief Executive Officer of various companies
    and his leadership positions with the NASDAQ Stock Market, Inc.,
    and his knowledge gained from service on the boards of various
    public and private companies and federal committees.
Richard M. Berkeley
has served as a member of our board
    of directors since December 2005, as a member of each of our
    compensation committee and nominating and governance committee
    since May 2007 and as Chairman of our nominating and governance
    committee since February 2010. Mr. Berkeley is a member of
    Camden Partners Holdings, LLC, where he focuses on investments
    in the business and financial services, health care and
    education markets for the firm. Prior to joining Camden Partners
    in October 2002, Mr. Berkeley spent 19 years with
    Alex. Brown & Sons Incorporated and its successor
    organizations, Bankers Trust New York Corporation and
    Deutsche Bank Securities Inc., where he was responsible for the
    origination, structuring and consummation of private equity
    financings for public and private companies. He currently serves
    on the board of directors of a number of private companies,
    educational institutions and charitable organizations.
    Mr. Berkeley served as an officer in the United States Air
    Force between 1974 and 1976. He received his B.A. in
    history, J.D. and M.B.A. from the University of Virginia.
    We believe Mr. Berkeley's qualifications to serve on
    our board of directors include his extensive business experience
    and knowledge in equity financings.
Peter Gyenes
has served as a member or our board of
    directors since January 2010. Mr. Gyenes has served as the
    non-executive Chairman of the board of directors of Sophos plc,
    a global security software company, since May 2006.
    Mr. Gyenes served as Chairman and Chief Executive Officer
    of Ascential Software Corporation (NASDAQ: ASCL), a market
    leader in data integration software, and its predecessor
    companies VMark Software, Ardent Software and Informix from 1996
    until it was acquired by International Business Machines
    Corporation in 2005. He currently serves on the boards of
    directors of Lawson Software, Inc. (NASDAQ: LWSN), Netezza
    Corporation (NYSE: NZ), Pegasystems Inc. (NASDAQ: PEGA) and
    VistaPrint Limited (NASDAQ: VPRT), as well as several private
    companies, and serves as trustee emeritus of the Massachusetts
    Technology Leadership Council. Mr. Gyenes previously served
    on the board of directors of webMethods Inc. (NASDAQ: WEBM)
    (acquired by Software AG Darmstadt) from 2005 to 2007, Applix,
    Inc. (NASDAQ: APLX) (acquired by Cognos, Inc.) from 2000 to 2007
    and BladeLogic, Inc. (NASDAQ: BLOG) (acquired by BMC Software,
    Inc.) from 2006 to 2008. Mr. Gyenes received his B.A. in
    mathematics and his M.B.A. in marketing from Columbia
    University. We believe Mr. Gyenes' qualifications to
    serve on our board of directors include his experience as the
    Chief Executive Officer of a publicly traded company, his
    knowledge gained from service on the boards of various public
    and private companies and his more than 40 years of
    experience in technology, sales, marketing and general
    management positions within the computer systems and software
    industry.
Jeffrey T. Leeds
has served as a member of our board of
    directors and a member of our nominating and governance
    committee since December 1999. He is President and Co-Founder of
    Leeds Equity Partners, LLC, which he co-founded in 1993, a
    private equity firm that focuses on the education, information
    services and training industries. Prior to co-founding Leeds
    Equity Partners, Mr. Leeds spent seven years specializing
    in mergers and acquisitions and corporate finance at Lazard
    Freres & Co. LLC, a subsidiary of Lazard Group LLC.
    Prior to joining Lazard Freres & Co. LLC,
    Mr. Leeds served as a law clerk to the Hon. William J.
    Brennan, Jr. of the Supreme Court of the United States
    during the 1985 October Term. Mr. Leeds also worked in
    the corporate department of the law firm of Cravath,
    Swaine & Moore LLP in New York after graduating from
    law school. Mr. Leeds currently serves on the board of
    directors of Education Management Corporation (NASDAQ: EDMC),
    Instituto de Banca y Comercio and SeatonCorp. and as a
    Trustee on the United Federation of Teacher's Charter
    School Board in New York City. Mr. Leeds received his B.A.
    in history
summa cum laude
from Yale University and his
    J.D. from Harvard Law School. He was also a Marshall Scholar at
    the University of Oxford. We believe Mr. Leeds'
    qualifications to serve on our board of directors include his
    extensive business and legal experience in corporate finance and
    his knowledge gained from service on the boards of various
    public and private companies.
Jason A. Wright
has served as a member or our board of
    directors since December 2003 and as the Chairman of our
    compensation committee since October 2006 and a member of our
    audit committee since January 2004. Mr. Wright is a partner
    in the Tech & Telecom Group at Apax Partners LLC,
    where he focuses
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primarily on investments in enterprise software and
    technology-enabled services. Prior to joining Apax in 2000,
    Mr. Wright served in a variety of roles at General Electric
    Capital Corporation, a subsidiary of General Electric
    Corporation, including the evaluation and execution of
    investment opportunities for the Technology Ventures Group, and
    Mr. Wright was also a consultant at Andersen Consulting,
    now Accenture plc. Mr. Wright currently serves on the board
    of directors of various private companies. Mr. Wright
    received his B.A. in economics from Tufts University and his
    M.B.A. in finance from The Wharton School of the University of
    Pennsylvania. We believe Mr. Wright's qualifications
    to serve on our board of directors include his extensive
    business and financial experience related to enterprise software
    and technology-enabled services companies.
Our executive officers are elected by, and serve at the
    discretion of, our board of directors. Certain of our
    stockholders who beneficially own shares representing
    approximately 96.5% of our outstanding capital stock as of
    December 31, 2009 have entered into a shareholders
    agreement that, among other things, provides for the voting of
    their shares with respect to the constituency of our board of
    directors. See "Certain Relationships and Related Party
    Transactions — 2010 Shareholders Agreement"
    for further description of this agreement. The current members
    of our board of directors have been elected by our stockholders
    voting in accordance with the terms of this agreement, which
    will terminate upon completion of this offering.
With the exception of Alfred R. Berkeley, III and Richard
    M. Berkeley, who are brothers, there are no family relationships
    among any of our directors or executive officers.
In addition to the information presented above regarding each
    director's specific experience, qualifications, attributes
    and skills that led our board of directors to the conclusion
    that each should serve as a director, we also believe that all
    of our directors have demonstrated business acumen, ethical
    integrity and an ability to exercise sound judgment, as well as
    a commitment of service to us and our board of directors.
Board of
    Directors
Our board of directors currently consists of six members. At
    each annual meeting of stockholders, our directors will be
    elected for a one-year term until their successors are elected
    and qualified, or until their earlier resignation or removal. We
    expect that our amended and restated certificate of
    incorporation and our amended and restated bylaws, to be
    effective upon the completion of this offering, will provide
    that the number of our directors will be fixed from time to time
    by a resolution of the majority of our board of directors.
    Nine directors are currently authorized.
Director
    Independence
In February 2010, our board of directors undertook a review of
    the independence of our directors and considered whether any
    director has a material relationship with us that could
    compromise his or her ability to exercise independent judgment
    in carrying out his or her responsibilities. As a result of this
    review, our board of directors determined that Alfred R.
    Berkeley, III, Richard M. Berkeley, Jeffrey T. Leeds, Jason A.
    Wright and Peter Gyenes, representing five of our six directors
    currently in office, are "independent directors" as
    defined under the rules of the SEC and the NASDAQ Global Market,
    or NASDAQ, and constitute a majority of independent directors of
    our board of directors as required by the rules of the SEC and
    NASDAQ.
Committees
    of the Board of Directors
Our board of directors has an audit committee, a compensation
    committee and a nominating and governance committee, each of
    which has the composition and responsibilities described below.
Audit
    Committee
Our audit committee is responsible for, among other things:
•
selecting and hiring our independent auditors;
•
approving the audit and non-audit services to be performed by
    our independent auditors;
•
evaluating the qualifications, performance and independence of
    our independent auditors;
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•
monitoring the integrity of our financial statements and our
    compliance with legal and regulatory requirements as they relate
    to financial statements or accounting matters;
•
reviewing the adequacy and effectiveness of our internal control
    policies and procedures;
•
discussing the scope and results of the audit with the
    independent auditors and reviewing with management and the
    independent auditors our interim and year-end operating results;
•
preparing the audit committee report required in this prospectus
    and in our annual proxy statement; and
•
reviewing and evaluating, at least annually, its own performance
    and that of its members, including compliance with the committee
    charter.
Our audit committee is currently composed of Alfred R.
    Berkeley, III, Jason A. Wright and Peter Gyenes.
    Mr. Berkeley has been appointed the Chairman of our audit
    committee. Our board of directors has determined that each
    member of our audit committee is independent under the
    applicable requirements of NASDAQ and SEC rules and regulations.
    Our board of directors has determined that each member of our
    audit committee meets the requirements for financial literacy
    and sophistication, and qualifies as an "audit committee
    financial expert," under the applicable requirements of
    NASDAQ and SEC rules and regulations.
Our board of directors has adopted an audit committee charter.
    We believe that the composition of our audit committee, and our
    audit committee's charter and functioning, will comply with
    the applicable requirements of NASDAQ and SEC rules and
    regulations. We intend to comply with future requirements to the
    extent they become applicable to us.
Following the completion of this offering, the full text of our
    audit committee charter will be posted on the investor relations
    portion of our website at
http://www.realpage.com
and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel.
Compensation
    Committee
Our compensation committee is responsible for, among other
    things:
•
reviewing and approving corporate goals and objectives relevant
    to compensation of our Chief Executive Officer and other
    executive officers;
•
reviewing and approving the following for our Chief Executive
    Officer and our other executive officers: annual base salaries,
    annual incentive bonuses, including the specific goals and
    amounts, equity compensation, employment agreements, severance
    arrangements and change in control arrangements and any other
    benefits, compensation or arrangements;
•
reviewing the succession planning for our executive officers;
•
reviewing and recommending compensation goals and bonus and
    stock compensation criteria for our employees;
•
reviewing and recommending compensation programs for outside
    directors;
•
preparing the compensation discussion and analysis and
    compensation committee report that the SEC requires in our
    annual proxy statement;
•
administering, reviewing and making recommendations with respect
    to our equity compensation plans; and
•
reviewing and evaluating, at least annually, its own performance
    and that of its members, including compliance with the committee
    charter.
Our compensation committee is currently composed of Jason A.
    Wright, Alfred R. Berkeley, III, Richard M. Berkeley and
    Peter Gyenes, each of whom is a non-employee member of our board
    of directors. Mr. Gyenes has been appointed to serve as the
    Chairman of our compensation committee. Our board of directors
    has
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determined that each member of our compensation committee is
    independent under the applicable requirements of NASDAQ and SEC
    rules and regulations, is a non-employee director, as defined by
Rule 16b-3
promulgated under the Securities and Exchange Act of 1934, as
    amended, or the Exchange Act, and is an outside director, as
    defined pursuant to Section 162(m) of the Internal Revenue
    Code.
Our board of directors has adopted a compensation committee
    charter. We believe that the composition of our compensation
    committee, and our compensation committee's charter and
    functioning, will comply with the applicable requirements of
    NASDAQ and SEC rules and regulations. We intend to comply with
    future requirements to the extent they become applicable to us.
Following the completion of this offering, the full text of our
    compensation committee charter will be posted on the investor
    relations portion of our web site at
http://www.realpage.com
and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel.
Nominating
    and Governance Committee
Our nominating and governance committee is responsible for,
    among other things:
•
assisting our board of directors in identifying prospective
    director nominees and recommending nominees for each annual
    meeting of stockholders to the board of directors;
•
reviewing developments in corporate governance practices and
    developing and recommending governance principles applicable to
    our board of directors;
•
overseeing the evaluation of our board of directors and
    management;
•
recommending members for each board committee to our board of
    directors; reviewing and monitoring our code of business conduct
    and ethics and actual and potential conflicts of interest of
    members of our board of directors and officers; and
•
reviewing and evaluating, at least annually, its own performance
    and that of its members, including compliance with the committee
    charter.
Our nominating and governance committee is currently composed of
    Richard M. Berkeley, Peter Gyenes, Jeffrey T. Leeds and Jason A.
    Wright. Mr. Berkeley has been appointed the Chairman of our
    nominating and governance committee. Our board of directors has
    determined that each member of our nominating and governance
    committee is independent under the applicable requirements of
    NASDAQ and SEC rules and regulations.
Our board of directors has adopted a nominating and governance
    committee charter. We believe that the composition of our
    nominating and governance committee, and our nominating and
    governance committee's charter and functioning, will comply
    with the applicable requirements of NASDAQ and SEC rules and
    regulations. We intend to comply with future requirements to the
    extent they become applicable to us.
Following the completion of this offering, the full text of our
    nominating and governance committee charter will be posted on
    the investor relations portion of our website at
http://www.realpage.com
and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel.
Code
    of Business Conduct and Ethics
Our board of directors has adopted a code of business conduct
    and ethics. The code applies to all of our employees, officers
    (including our principal executive officer, principal financial
    officer, principal accounting officer or controller, or persons
    performing similar functions), including directors and
    consultants. Following the completion of this offering, the full
    text of our code of business conduct and ethics will be posted
    on the investor relations portion of our website at
http://www.realpage.com
and will be available without charge, upon request in writing to
    RealPage, Inc., 4000 International Parkway, Carrollton, Texas
    75007, Attn: General Counsel. We intend to disclose future
    amendments to certain provisions of our code of business conduct
    and
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ethics, or waivers of such provisions, applicable to any
    principal executive officer, principal financial officer,
    principal accounting officer or controller, or persons
    performing similar functions or our directors on our website.
    The inclusion of our website address in this prospectus does not
    include or incorporate by reference the information on our
    website into this prospectus.
Compensation
    Committee Interlocks and Insider Participation
None of the members of our compensation committee is an officer
    or employee of our company. None of our executive officers
    currently serves, or in the past year has served, as a member of
    the board of directors or compensation committee of any entity
    that has one or more executive officers serving on our board of
    directors or compensation committee.
Director
    Compensation
Historically, we have not paid any cash compensation to our
    directors for their services as directors or as members of
    committees of our board of directors. We have instead granted
    options to our non-employee directors who are not affiliated
    with our major stockholders as set forth below. However,
    effective April 1, 2010, we will provide our independent
    directors with both cash and equity compensation as described
    below.
Stock
    Option Grants to Alfred R. Berkeley, III
On January 9, 2004, we granted an option to purchase
    250,000 shares of our common stock to Alfred R. Berkeley,
    III at an exercise price of $1.00. The option is immediately
    exercisable. We have a right to repurchase all shares acquired
    upon exercise of the option, which repurchase right expires as
    to one forty-eighth of the shares issued upon exercise of the
    stock option on the last day of each month beginning in February
    2004, subject to Mr. Berkeley's continued service
    through each applicable date.
On March 11, 2005, we granted an option to purchase
    100,000 shares of our common stock to Mr. Berkeley at
    an exercise price of $1.00. The option is immediately
    exercisable. We have a right to repurchase all shares acquired
    upon exercise of the option, which repurchase right expires as
    to one forty-eighth of the shares issued upon exercise of the
    stock option on the last day of each month beginning in April
    2005, subject to Mr. Berkeley's continued service
    through each applicable date.
On December 17, 2008, we granted an option to purchase
    50,000 shares of our common stock to Mr. Berkeley at
    an exercise price of $3.00. The option is immediately
    exercisable. We have a right to repurchase all shares acquired
    upon exercise of the option, which repurchase right expires as
    to one forty-eighth of the shares issued upon exercise of the
    stock option on the last day of each month beginning in January
    2009, subject to Mr. Berkeley's continued service
    through each applicable date.
Stock
    Option Grants to Peter Gyenes
On December 18, 2009, we granted a contingent option to
    purchase 100,000 shares of our common stock to Peter Gyenes
    at an exercise price of $3.00. The contingencies of the grant
    were satisfied and the grant became effective on
    December 29, 2009. This grant was subsequently cancelled
    and terminated and replaced by a grant to Peter Gyenes of an
    option to purchase 120,000 shares of our common stock at an
    exercise price of $3.75 on February 25, 2010. The stock
    option vests with respect to 5% of the shares subject to the
    stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date. In the event of a "change of
    control," as defined in the stock option agreement with
    Mr. Gyenes, all of the options subject to the agreement
    will become fully vested and exercisable.
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Independent
    Director Compensation Plan
In February 2010, our compensation committee approved the
    following compensation plan for our independent directors, which
    became effective April 1, 2010. Our stockholders approved
    the independent director compensation plan in March 2010.
    The term "independent directors" for purposes of our
    independent director compensation plan will be as defined in our
    Fourth Amended and Restated Shareholders Agreement, dated as of
    March 17, 2010, prior to the effectiveness of the
    registration statement of which this prospectus is a part and
    will be as defined by our board of directors following
    effectiveness.
Retainer
$6,000 per quarter
Audit committee chair retainer
$4,500 per quarter
Audit committee member (excluding chair) retainer
$3,000 per quarter
Other board committee chair retainer
$3,000 per quarter
Other committee member (excluding chair) retainer
$1,500 per quarter
Annual equity grant
$50,000 restricted stock
    value
(1)
(1)
The forfeiture provision of each annual restricted stock grant
    will lapse with respect to 5% of the restricted shares subject
    to the grant each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and the forfeiture provision will lapse
    with respect to the remaining 25% of the restricted shares
    subject to the grant on the first day of the next following
    calendar quarter, subject to the continuous service of the
    director through each applicable date.
On April 1, 2010, we issued 13,333 restricted shares of our
    common stock to each of Alfred R. Berkeley, III and Peter
    Gyenes pursuant to our independent director compensation plan.
Director
    Compensation Table for Year Ended December 31,
    2009
The following table sets forth the annual director compensation
    paid or accrued by us to individuals who were directors during
    any part of 2009. The table excludes Mr. Winn, who is our
    Chief Executive Officer and who did not receive any compensation
    from us in his role as director in 2009.
Fees Earned or
Option
Name
Paid in Cash ($)
Awards
    ($)
(1)
Total ($)
Alfred R. Berkeley, III
—
—
—
Richard M. Berkeley
—
—
—
Peter Gyenes
—
$
158,257
(2)
$
158,257
Jeffrey T. Leeds
—
—
—
Jason A. Wright
—
—
—
(1)
Represents the aggregate grant date fair value computed in
    accordance with FASB ASC Topic 718. See Note 8 of Notes to
    Consolidated Financial Statements for the year ended
    December 31, 2009 for a discussion of assumptions made in
    determining the grant date fair value of our stock option awards.
(2)
Reflects contingent grant to Mr. Gyenes of options to
    purchase 100,000 shares of our common stock at an exercise
    price of $3.00 per share on December 18, 2009. The
    contingencies of the grant were satisfied and the grant became
    effective on December 29, 2009. This grant was subsequently
    cancelled and terminated and replaced by a grant to
    Mr. Gyenes of options to purchase 120,000 shares of
    our common stock at an exercise price of $3.75 on
    February 25, 2010. The aggregate grant date fair value of
    this subsequent grant computed in accordance with FASB ASC Topic
    718 is $222,414.
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EXECUTIVE
    COMPENSATION
Compensation
    Discussion and Analysis
The following discussion and analysis of compensation
    arrangements of our principal executive officer, principal
    financial officer and each of the next three most highly
    compensated executive officers, referred to as our named
    executive officers, for our year ended December 31, 2009
    should be read together with the compensation tables and related
    disclosures that follow this discussion.
Compensation
    Philosophy and Objectives
Our philosophy is to provide compensation to each of our named
    executive officers that is commensurate with his or her position
    and experience, furnish incentives sufficient for the named
    executive officer to meet and exceed short-term and long-term
    corporate objectives as determined by our board of directors and
    align the named executive officers' incentives with the
    long-term interests of our stockholders. Additionally, our
    executive compensation program is intended to provide
    significant motivation for our named executive officers to
    remain employed by us unless and until our board of directors
    finds that retention of the named executive officer is no longer
    in accord with our corporate objectives.
Based on this philosophy, the primary objectives of our board of
    directors and compensation committee with respect to executive
    compensation are to:
•
attract, retain and motivate skilled and knowledgeable executive
    talent;
•
ensure that executive compensation is aligned with our corporate
    strategies and business objectives; and
•
align the incentives of the named executive officers with the
    creation of value for stockholders.
To achieve these objectives, our compensation committee
    periodically evaluates our executive compensation program with
    the goal of establishing compensation at levels our compensation
    committee believes to be competitive with those of our
    competitive peer group companies and other companies in our
    geographical regions that compete with us for executive talent.
    Additionally, we design our executive compensation program to
    tie a portion of each named executive officer's overall
    cash compensation to key strategic, financial and operational
    goals set by our board of directors.
Compensation
    Decision-Making Process
Our compensation committee is responsible for overseeing and
    approving our executive compensation program. Our compensation
    committee currently consists of four members. The current
    members of our compensation committee are Jason A. Wright,
    Alfred R. Berkeley, III, Richard M. Berkeley and Peter
    Gyenes. Mr. Gyenes has been appointed to serve as the
    Chairman of our compensation committee. Our board of directors
    has determined that each member of our compensation committee is
    independent under the applicable requirements of NASDAQ and SEC
    rules and regulations, is a non-employee director, as defined by
Rule 16b-3
promulgated under the Exchange Act and is an outside director,
    as defined pursuant to Section 162(m) of the Internal
    Revenue Code of 1986, as amended. For a discussion of the
    specific responsibilities of our compensation committee, see
    "Management — Committees of the Board of
    Directors — Compensation Committee."
Our Chief Executive Officer makes base salary, cash bonus and
    long-term incentive compensation recommendations to the
    compensation committee for each of our named executive officers
    based on his or her level of responsibility, performance and
    contribution to achieving our overall corporate objectives. Our
    compensation committee considers the Chief Executive
    Officer's input but retains complete authority to approve
    all compensation related decisions for our named executive
    officers. Additionally, our Chief Executive Officer is not
    permitted to be present during deliberations or voting by the
    compensation committee regarding his performance goals,
    performance evaluation or compensation level and abstains from
    voting in sessions where our board of directors acts on the
    compensation committee's recommendations regarding his
    compensation.
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For purposes of determining compensation levels for our named
    executive officers, our compensation committee considers the
    recommendations of our Chief Executive Officer, our overall
    achievement of corporate objectives, the level of
    responsibility, performance and individual contributions of our
    named executive officers, each named executive officer's
    equity ownership and the compensation committee members'
    own experience in compensation-related matters. For purposes of
    evaluating compensation levels for 2009 and 2010, our
    compensation committee also considered competitive market
    benchmarking data as described in "Executive
    Compensation — Competitive Positioning." Based on
    these considerations, our compensation committee approved
    compensation packages for each of our named executive officers
    in 2009 and 2010, the components of which are further described
    in "Executive Compensation — Compensation
    Components."
In February 2010, our board of directors approved a new
    compensation committee charter in anticipation of our initial
    public offering, and our compensation committee approved 2010
    salaries for our named executive officers and our 2010
    Management Incentive Plan.
Competitive
    Positioning
Our compensation committee has the authority to engage outside
    consultants from time to time, as the committee sees fit, to
    conduct market reviews of our executive compensation program and
    philosophy in order to assess the competitiveness of our
    program. In the third quarter of 2008, our compensation
    committee engaged Mercer LLC, a wholly owned subsidiary of
    Marsh & McLennan Companies, Inc., or Mercer, a global
    human resources and financial services consulting firm, to
    conduct an independent market review of our executive
    compensation program. To analyze our executive compensation
    program, Mercer used two public company market references to
    compare our total compensation practices for our executives to
    those in our market:
•
Publicly Held Companies Surveys.
Two private
    surveys regarding executive compensation in the technology
    industry, the Watson Wyatt Executive Compensation Survey and the
    Towers Perrin Executive Compensation Survey; and
•
Select Peer Group.
Publicly available data for
    a competitive peer group of publicly traded on demand software
    and services companies of similar size experiencing rapid
    revenue growth comparable to ours with total employees in the
    range of 500 to 1,000, or the Select Peer Group.
The Select Peer Group was developed in consultation between our
    compensation committee, our management team and Mercer and
    consisted of the following organizations:
Blackboard Inc.
RightNow Technologies
DealerTrack Holdings, Inc.
NetSuite Inc.
Kenexa Corporation
Unica Corporation
Ultimate Software Group, Inc.
Callidus Software Inc.
Omniture, Inc.
athenahealth, Inc
Concur Technologies, Inc.
SuccessFactors, Inc.
Taleo Corporation
Constant Contact, Inc.
SumTotal Systems, Inc.
DemandTec, Inc.
Mercer benchmarked our 2008 executive compensation levels,
    including base salaries, performance-based cash bonuses and
    long-term equity incentive awards, to those of other executives
    in the Select Peer Group where sufficient peer proxy data was
    available and against the Publicly Held Companies Surveys where
    insufficient peer proxy data was available and reported their
    findings to the compensation committee. The Mercer analysis
    indicated that the base salaries and the target
    performance-based cash bonuses of each of our named executive
    officers who were employed by us in 2008 were generally
    consistent with market median levels with the exception that our
    Chief Executive Officer's target performance-based cash
    bonus was in the 25th percentile. Additionally, the Mercer
    analysis indicated that our long-term equity incentive levels
    were below the 25th percentile.
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In 2009, our compensation committee did not engage outside
    consultants to conduct an independent market review of our
    executive compensation program. However, our Chief Executive
    Officer reviewed publicly available compensation data for the
    Select Peer Group. For purposes of evaluating compensation
    levels for 2009 and 2010, our compensation committee considered
    Mercer's analysis and our Chief Executive Officer's
    review of publicly available information for the Select Peer
    Group but did not target any specific percentile rank with
    respect to any of our compensation components in determining
    appropriate compensation levels for our named executive
    officers. In each of 2009 and 2010, this competitive market
    benchmarking data was one of many factors considered by our
    compensation committee in determining appropriate compensation
    levels for our named executive officers.
Compensation
    Components
Base
    Salaries
Base salaries are used to recognize the experience, skills,
    knowledge and responsibilities required of all our named
    executive officers. Base salaries for our named executive
    officers have typically been negotiated as a part of the
    employment agreements with our named executive officers at the
    outset of employment. However, from time to time, at the
    discretion of our compensation committee and consistent with our
    executive compensation program objectives, base salaries for our
    named executive officers, together with other components of
    compensation, are evaluated for adjustment based on an
    assessment of the overall achievement of corporate objectives,
    each named executive officer's sustained performance and
    compensation trends in our industry. Each named executive
    officer's employment agreement requires that his or her
    base salary be reviewed no less frequently than annually;
    however, none of our named executive officers has an employment
    agreement that provides for automatic or scheduled increases in
    base salary.
In December 2008, our compensation committee conducted a
    review of our executive compensation program for purposes of
    evaluating compensation levels for our executives for 2009.
    Based on the considerations described above in "Executive
    Compensation — Compensation Decision-Making
    Process," our compensation committee approved base salary
    increases to be effective as of January 1, 2009 for each of
    our named executive officers except for our Chief Executive
    Officer. The percentage increase for each named executive
    officer was based on our compensation committee's
    assessment of the various considerations described above. In the
    case of Mr. Wakeham and Ms. Chaffin Glover, the
    increase in base salary was primarily due to the named executive
    officers' increased responsibilities associated with
    promotions. Our compensation committee did not increase our
    Chief Executive Officer's base salary for 2009 because of
    the substantial incentive provided by our Chief Executive
    Officer's significant ownership of our common stock. The
    table below shows base salaries for our named executive officers
    for 2008 and 2009.
2008 Base
2009 Base
Named Executive Officer
Current Title
Salary
(1)
Salary
(2)
% Increase
Stephen T. Winn
Chief Executive Officer, Chairman of the Board
$
400,000
$
400,000
—
Timothy J. Barker
Chief Financial Officer and Treasurer
285,000
315,000
10.5
%
Dirk D. Wakeham
President
(3)
250,000
260,000
(4)
4.0
Ashley Chaffin Glover
Executive Vice President, Multifamily
    Solutions
(5)
220,000
260,000
(6)
18.2
William E.
    Van Valkenberg
(7)
Chief Legal Officer and Secretary
—
300,000
—
(1)
Reflects base salary at end of 2008.
(2)
Reflects base salary at beginning of 2009.
(3)
Mr. Wakeham assumed the title and responsibilities of
    President in January 2010. He served as our Executive Vice
    President, Property Solutions, from April 2009 to January 2010
    and as our Senior Vice President, President, LeasingDesk Risk
    Mitigation Systems, for prior periods in 2009.
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(4)
Mr. Wakeham's salary was increased from $260,000 to
    $300,000 effective April 1, 2009 in connection with his
    promotion to Executive Vice President, Property Solutions.
(5)
Ms. Chaffin Glover assumed the title and responsibilities
    of Executive Vice President, Multifamily Solutions in January
    2010. She served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior Vice
    President, President, Velocity Utility and Billing Services, for
    prior periods in 2009.
(6)
Ms. Chaffin Glover's salary was increased from
    $260,000 to $300,000 effective April 1, 2009 in connection
    with her promotion to Executive Vice President, Resident
    Solutions.
(7)
Mr. Van Valkenberg commenced his employment with us in
    September 2009 after providing consulting services to us from
    June 2009 to September 2009.
In February 2010, our compensation committee conducted a review
    of our executive compensation program for purposes of evaluating
    compensation levels for our executives for 2010. Based on the
    considerations described above in "Executive
    Compensation — Compensation Decision-Making
    Process," our compensation committee approved base salary
    increases to be effective as of January 1, 2010 for each of
    our named executive officers except for our Chief Executive
    Officer. The percentage increase for each named executive
    officer was based on our compensation committee's
    assessment of the various considerations described above. In the
    case of Mr. Wakeham and Ms. Chaffin Glover, the
    increase in base salary was primarily due to the named executive
    officers' increased responsibilities associated with
    promotions. Our compensation committee again did not increase
    our Chief Executive Officer's base salary for 2010 because
    of the substantial incentive provided by our Chief Executive
    Officer's significant ownership of our common stock. The
    table below shows base salaries for our named executive officers
    for fiscal 2009 and 2010.
2009 Base
2010 Base
Named Executive Officer
Title
Salary
(1)
Salary
(2)
% Increase
Stephen T. Winn
Chief Executive Officer, Chairman of the Board
$
400,000
$
400,000
—
Timothy J. Barker
Chief Financial Officer and Treasurer
315,000
350,000
11.1
%
Dirk D. Wakeham
President
(3)
300,000
(4)
330,000
10.0
Ashley Chaffin Glover
Executive Vice President, Multifamily
    Solutions
(5)
300,000
(6)
320,000
6.7
William E.
    Van Valkenberg
(7)
Chief Legal Officer and Secretary
300,000
300,000
—
(1)
Reflects base salary at the end of 2009.
(2)
Reflects base salary at beginning of 2010.
(3)
Mr. Wakeham assumed the title and responsibilities of
    President in January 2010. He served as our Executive Vice
    President, Property Solutions, from April 2009 to January 2010
    and as our Senior Vice President, President, LeasingDesk Risk
    Mitigation Systems, for prior periods in 2009.
(4)
Mr. Wakeham's salary was increased from $260,000 to
    $300,000 effective April 1, 2009 in connection with his
    promotion to Executive Vice President, Property Solutions.
(5)
Ms. Chaffin Glover assumed the title and responsibilities
    of Executive Vice President, Multifamily Solutions in January
    2010. She served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior Vice
    President, President, Velocity Utility and Billing Services, for
    prior periods in 2009.
(6)
Ms. Chaffin Glover's salary was increased from
    $260,000 to $300,000 effective April 1, 2009 in connection
    with her promotion to Executive Vice President, Resident
    Solutions.
(7)
Mr. Van Valkenberg commenced his employment with us in
    September 2009 after providing consulting services to us from
    June 2009 to September 2009.
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Performance-Based
    Cash Bonuses
Our named executive officers participate in our annual
    non-equity management incentive plan, or management incentive
    plan, along with our other senior managers. Our annual
    management incentive plan is intended to provide cash
    compensation to our named executive officers and senior managers
    for their contribution to the achievement of our strategic,
    operational and financial objectives. Our named executive
    officers earn amounts under our management incentive plan based
    on our achievement of financial performance objectives,
    including overall corporate revenue and adjusted EBITDA targets
    and product family specific revenue and profit targets for those
    participants of our management incentive plan that have direct
    responsibility over the operations specific to one of our
    product families, and an assessment of the named executive
    officer's individual performance. For purposes of the
    management incentive plan, adjusted EBITDA is calculated the
    same as Adjusted EBITDA as described in footnote 5 to the
    table in "Selected Consolidated Financial Data" except
    that purchase accounting adjustments are also added back. Our
    compensation committee approves a management incentive plan each
    year that outlines overall corporate objectives for the fiscal
    year in addition to establishing guidelines for calculating
    management incentive plan bonuses in the event that performance
    objectives are partially achieved or exceeded.
A portion of our management incentive plan bonuses are typically
    paid out quarterly based on progression towards the annual
    achievement of performance objectives. The actual annual cash
    bonus paid to participants under our management incentive plan
    with respect to a particular fiscal year is adjusted at year end
    based on actual achievement of both financial and individual
    performance objectives. We do not have any formal or informal
    policies regarding the adjustment or recovery of bonus payments
    made under the management incentive plan in the event a relevant
    performance objective upon which the payment was made is not
    ultimately achieved.
Under the management incentive plan for 2009, or the 2009
    Management Incentive Plan, the target bonus for Mr. Winn
    was 75% of Mr. Winn's base salary with a maximum bonus
    potential of 200% of Mr. Winn's target bonus for
    achieving financial and individual performance objectives in
    excess of the targets and a minimum bonus potential of 0% of
    Mr. Winn's target bonus. The 2009 Management Incentive
    Plan target bonus for each other named executive officer was 50%
    of the named executive officer's base salary with a maximum
    bonus potential of 200% of the named executive officer's
    target bonus for achieving financial and individual performance
    objectives in excess of the targets and a minimum bonus
    potential of 0% of the named executive officer's target
    bonus. Our 2009 revenue target was approximately 30% higher than
    our 2008 target while our 2009 adjusted EBITDA target was
    approximately 100% higher than our 2008 target. The compensation
    committee believed that the 2009 targets were challenging, but
    attainable, based on the increases in our revenue and adjusted
    EBITDA in 2008 relative to 2007 and directly aligned our named
    executive officers' short-term incentives with the creation
    of long-term stockholder value. Our compensation committee had
    sole discretion to adjust targets and awards under the 2009
    Management Incentive Plan for significant, non-controllable
    circumstances that were not included in our 2009 operating plan;
    however, our compensation committee did not exercise such
    discretion under the 2009 Management Incentive Plan. For each of
    Messrs. Winn, Barker and Van Valkenberg, the achievement of
    2009 bonus targets for overall corporate revenue, overall
    corporate adjusted EBITDA and individual performance ratings
    were weighted 30%, 45% and 25%, respectively. We weighted the
    individual 2009 Management Incentive Plans more heavily toward
    achieving adjusted EBITDA over revenue targets for
    Messrs. Winn, Barker and Van Valkenberg because we believe
    that increases in adjusted EBITDA will drive our long-term
    success and result in greater opportunity for profit in the
    future. For Ms. Chaffin Glover and Mr. Wakeham, the
    achievement of 2009 Management Incentive Plan bonus targets for
    revenue, adjusted EBITDA and individual performance ratings were
    weighted 50% (of which, 15% was based on overall corporate
    performance and 35% was based on the performance of operations
    under the named executive officers' direct management), 25%
    (of which, 10% was based on overall corporate performance and
    15% was based on the performance of operations under the named
    executive officers' direct management) and 25%,
    respectively. We weighted the individual 2009 Management
    Incentive Plans for Ms. Chaffin Glover and Mr. Wakeham
    more heavily toward achieving revenue over adjusted EBITDA
    because we believe that the positions held by Ms. Chaffin
    Glover and Mr. Wakeham have more direct influence over
    revenue performance than our other named executive officers.
    Additionally, we weighted
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the performance of the operations under these named executive
    officers' direct management over our overall corporate
    performance in order to motivate and incentivize the named
    executive officers to drive growth in operations under their
    direct management.
The following table summarizes the actual bonuses paid to our
    named executive officers pursuant to the 2009 Management
    Incentive Plan based on achievement of 2009 performance
    objectives as compared to each named executive officer's
    target bonuses:
2009
Actual Bonus as
Target
Actual
a Percent of
Executive
Bonus ($)
Bonus ($)
Target Bonus
Stephen T. Winn
$
300,000
$
246,765
82.3
%
Timothy J. Barker
157,500
149,240
94.8
Dirk D. Wakeham
150,000
131,585
87.7
Ashley Chaffin Glover
150,000
120,335
80.2
William E.
    Van Valkenberg
(1)
40,685
34,878
85.7
(1)
Mr. Van Valkenberg commenced his employment with us in
    September 2009. Mr. Van Valkenberg's annual bonus
    opportunity under the 2009 Management Incentive Plan was subject
    to proration based on the actual number of days he was employed
    by us during 2009.
The Management Incentive Plan for 2010, or the 2010 Management
    Incentive Plan, was approved by our compensation committee in
    February 2010. The 2010 Management Incentive Plan target bonus
    for Mr. Winn is 100% of Mr. Winn's base salary
    with a maximum bonus potential of 200% of Mr. Winn's
    target bonus for achieving financial and individual performance
    objectives in excess of the targets and a minimum bonus
    potential of 0% of Mr. Winn's target bonus. The 2010
    Management Incentive Plan target bonus for Ms. Chaffin
    Glover and Messrs. Barker and Van Valkenberg is 50% of
    the named executive officer's base salary with a maximum
    bonus potential of 200% of the named executive officer's
    target bonus for achieving financial and individual performance
    objectives in excess of the targets and a minimum bonus
    potential of 0% of the named executive officer's target
    bonus. The 2010 Management Incentive Plan target bonus for
    Mr. Wakeham is 62.5% of Mr. Wakeham's base salary
    with a maximum bonus potential of 200% of
    Mr. Wakeham's target bonus for achieving financial and
    individual performance objectives in excess of the targets and a
    minimum bonus potential of 0% of Mr. Wakeham's target
    bonus. The performance metrics under the 2010 Management
    Incentive Plan are the same as the performance metrics under our
    2009 Management Incentive Plan and include revenue and adjusted
    EBITDA targets and individual performance ratings. The
    compensation committee believes that the 2010 targets are
    challenging, but attainable, based on the increases in our
    revenue and adjusted EBITDA in 2009 relative to 2008 and will
    continue to align our named executive officers' short-term
    incentives with the creation of long-term stockholder value. For
    each of Messrs. Winn, Barker and Van Valkenberg, the
    achievement of 2010 bonus targets for overall corporate revenue,
    overall corporate adjusted EBITDA and individual performance
    ratings are weighted 30%, 45% and 25%, respectively. We weighted
    the individual 2010 Management Incentive Plans more heavily
    toward achieving adjusted EBITDA over revenue targets for
    Messrs. Winn, Barker and Van Valkenberg because we believe
    that increases in adjusted EBITDA will drive our long-term
    success and result in greater opportunity for profit in the
    future. For Mr. Wakeham, the achievement of 2010 bonus
    targets for overall corporate revenue, overall corporate
    adjusted EBITDA and individual performance ratings are weighted
    45%, 30% and 25%, respectively. For Ms. Chaffin Glover, the
    achievement of 2010 Management Incentive Plan bonus targets for
    revenue, adjusted EBITDA and individual performance ratings are
    weighted 50% (of which, 15% was based on overall corporate
    performance and 35% was based on the performance of operations
    under the named executive officers' direct management), 25%
    (of which, 10% was based on overall corporate performance and
    15% was based on the performance of operations under the named
    executive officers' direct management) and 25%,
    respectively. We weighted the individual 2010 Management
    Incentive Plan for Mr. Wakeham and Ms. Chaffin Glover
    more heavily toward achieving revenue over adjusted EBITDA
    because we believe that the positions held by these named
    executive officers have more direct influence over revenue
    performance than our other named executive officers.
    Additionally, we weighted the performance of the operations
    under Ms. Chaffin Glover's direct management over our
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overall corporate performance in order to motivate and
    incentivize Ms. Chaffin Glover to drive growth in
    operations under her direct management. Our compensation
    committee retains sole discretion to adjust targets and awards
    under the 2010 Management Incentive Plan for significant,
    non-controllable circumstances that were not included in our
    2010 operating budget.
Equity
    Incentive Awards
Our equity award program is the primary vehicle for offering
    long-term incentives to our named executive officers.
    Historically, our equity awards to our named executive officers
    have been in the form of stock options. We believe that
    equity-based compensation provides our named executive officers
    with a direct interest in our long-term performance, creates an
    ownership culture and aligns the interests of our named
    executive officers and our stockholders.
Grants of stock option awards, including those to our named
    executive officers, are all approved by our compensation
    committee and are granted at an exercise price at or above the
    fair market value of our common stock on the date of grant.
    Consistent with the terms of our options granted to our other
    employees, options granted to our named executive officers
    typically vest over a four-year period in accordance with one of
    the following vesting schedules, subject to continued service
    through each applicable vesting date:
•
The stock option vests in equal quarterly installments over
    16 consecutive quarters commencing on the first day of the
    calendar quarter immediately following the grant date; or
•
The stock option vests with respect to 5% of the shares subject
    to the stock option each quarter commencing on the first day of
    the calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date.
We believe that the four-year vesting period of our stock option
    grants furthers our objective of executive retention as it
    provides an incentive to our executives to remain in our employ
    during the vesting period.
We typically make an initial stock option grant to new
    executives in connection with the commencement of his or her
    employment. Additionally, at the discretion of our board of
    directors and consistent with our executive compensation program
    objectives, our compensation committee typically evaluates and
    approves equity awards for our new employees quarterly and
    equity awards for our existing employees, including our named
    executive officers, annually, to re-establish or bolster
    incentives to retain our employees. The stock options we granted
    to our named executive officers in 2009 are set forth under
    "Executive Compensation — Grants of Plan-Based
    Awards." On February 25, 2010, we granted options to
    purchase 350,000, 225,000 and 300,000 shares of our common
    stock to Mr. Barker, Ms. Chaffin Glover and Mr. Wakeham,
    respectively, at an exercise price per share of $3.75. These
    stock options vest with respect to 5% of the shares subject to
    the stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date. In determining the size of stock
    option grants to our named executive officers in 2009 and 2010,
    our compensation committee considered comparative equity
    ownership of executives employed by companies in our Select Peer
    Group, our overall achievement of corporate objectives, the
    applicable named executive officer's achievement of
    individual performance objectives, the achievement of certain
    strategic initiatives, the amount of equity previously awarded
    to the named executive officer, the vesting of previous awards
    and the recommendations of our Chief Executive Officer.
    Mr. Van Valkenberg was not granted stock options or other
    equity awards in 2010, as he had recently been granted an option
    to purchase 300,000 shares of our common stock upon the
    commencement of his full-time employment with us in September
    2009.
Mr. Winn, our Chief Executive Officer, has not received
    equity based compensation historically. Mr. Winn's
    primary equity compensation continues to come from expected
    returns on his ownership of our stock. As a significant
    stockholder, Mr. Winn's personal wealth is tied
    directly to sustaining stock price appreciation and performance,
    which directly aligns Mr. Winn's interests with
    overall stockholder interests.
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At the discretion of our compensation committee, we expect to
    continue to grant new stock options to named executive officers
    annually consistent with our overall executive compensation
    program objectives. In determining the size of stock option
    grants to named executive officers in future years, we expect
    that our compensation committee will consider comparative equity
    ownership of executives employed by companies in our Select Peer
    Group, our financial performance, the applicable named executive
    officer's achievement of performance objectives, the amount
    of equity compensation previously awarded to the named executive
    officer, the vesting of previous awards and the recommendations
    of our Chief Executive Officer.
Severance
    and Change in Control Benefits
Our employment agreements with our named executive officers
    provide for payments and other benefits in the event of
    termination of employment in certain circumstances. For a
    description of these payments and other benefits, see
    "Executive Compensation — Potential Payments on
    Termination or Change in Control."
Our 1998 Stock Incentive Plan provides that stock options
    granted to a participant under our 1998 Stock Incentive Plan
    will become 100% vested on the participant's death or
    disability (as defined in Section 22(e)(3) of the Internal
    Revenue Code) unless the stock option agreement provides
    otherwise. Each of the outstanding stock options granted to our
    named executive officers has been granted under our 1998 Stock
    Incentive Plan and would be subject to this acceleration benefit
    in the event of the named executive officer's death or
    disability. We generally do not provide for accelerated vesting
    of options held by our employees or named executive officers in
    connection with change in control transactions. However, our
    stock option agreements with Mr. Barker provide for
    accelerated vesting in connection with certain change in control
    transactions as further described under "Executive
    Compensation — Potential Payments on Termination or
    Change in Control — Arrangements with Timothy J.
    Barker." Our compensation committee determined that it was
    appropriate to provide for payments and accelerated vesting for
    Mr. Barker, but not our other named executive officers, in
    connection with certain change in control transactions because
    the position of Chief Financial Officer is more likely to be
    affected by such a transaction than the positions held by our
    other named executive officers (other than Chief Executive
    Officer). However, our compensation committee did not believe it
    was necessary to provide for additional payments to
    Mr. Winn in the event of certain change in control
    transactions given his significant ownership of our common stock.
We believe that these severance arrangements help us to attract
    and retain key management talent in an industry where there is
    significant competition for management talent. We believe that
    entering into these agreements helps the named executive
    officers maintain continued focus and dedication to their
    assigned duties and maximizes stockholder value. The terms of
    these agreements were determined after review by our
    compensation committee of our retention goals for each named
    executive officer, as well as analysis of market data, similar
    agreements established by our Select Peer Group and applicable
    law.
Benefits
    and Other Compensation
We maintain broad-based employee benefit plans, which are
    provided to all eligible U.S.-based employees. These plans
    include a group medical program, a group dental program, life
    insurance, disability insurance, flexible spending accounts and
    a 401(k) savings plan. Other benefit programs offered to all
    full-time U.S.-based employees include programs for job-related
    educational assistance, an employee referral program, group term
    life insurance equivalent to 1.5 times an employee's annual
    base salary up to a $600,000 maximum and an employee assistance
    program. All U.S.-based executives are eligible to participate
    in our employee benefit plans on the same basis as our other
    full-time employees, with the exception of the employee referral
    program, in which our named executive officers are ineligible to
    participate.
We believe these benefits are consistent with the benefits
    offered by companies with which we compete for employees and are
    necessary to attract and retain qualified employees.
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Perquisites
We believe that cash and equity compensation are the two key
    components in attracting and retaining management talent and
    therefore do not generally provide any substantial perquisites
    to our named executive officers.
Tax and
    Accounting Considerations
Section 162(m) of the Internal Revenue Code generally
    disallows a tax deduction for certain compensation in excess of
    $1.0 million per year paid by a publicly held company to
    its chief executive officer or any of its three other most
    highly paid executive officers (other than the company's
    chief executive officer and chief financial officer). Qualifying
    performance-based compensation is not subject to the deduction
    limitation if specified requirements are met. In addition,
    "grandfather" provisions may apply to certain
    compensation arrangements that were entered into by a company
    before it was publicly held. We generally intend to structure
    the performance-based portion of our executive compensation,
    when feasible, to comply with exemptions in Section 162(m)
    so that the compensation remains tax deductible to us. However,
    to remain competitive with other employers, our compensation
    committee may, in its judgment, authorize compensation payments
    that do not comply with the exemptions in Section 162(m)
    when it believes that such payments are appropriate to attract
    and retain executive talent.
Summary
    Compensation Table
The following table provides information regarding the
    compensation of our named executive officers during our year
    ended December 31, 2009.
Non-Equity
Incentive
Option
Plan
All Other
Awards
Compensation
Compensation
Name and Principal Position
Year
Salary ($)
Bonus ($)
($)
(1)
($)
(2)
($)
(3)
Total ($)
Stephen T. Winn
2009
$
400,000
—
—
$
246,765
$
3,675
$
650,440
Chairman of the Board and Chief Executive Officer
Timothy J. Barker
2009
315,000
—
$
320,631
149,240
3,675
788,546
Chief Financial Officer and Treasurer
Dirk D.
    Wakeham
(4)
2009
290,000
(5)
—
256,505
131,585
51,853
(6)
729,943
President
Ashley Chaffin
    Glover
(7)
2009
290,000
(8)
—
256,505
120,335
3,675
670,515
Executive Vice President, Multifamily Solutions
William E. Van
    Valkenberg
(9)
2009
79,615
—
372,726
34,878
96,338
(10)
583,557
Chief Legal Officer and Secretary
(1)
Represents the aggregate grant date fair value computed in
    accordance with FASB ASC Topic 718. See Note 8 of Notes to
    Consolidated Financial Statements for the year ended
    December 31, 2009 for a discussion of assumptions made in
    determining the grant date fair value of our stock option awards.
(2)
Represents awards under our 2009 Management Incentive Plan. The
    material terms of these annual incentive awards are described in
    this section under "Compensation Discussion and
    Analysis — Compensation Components —
    Performance-Based Bonuses."
(3)
Represents the amount of our matching contributions under our
    401(k) savings plan unless additional forms of other
    compensation are also indicated in relevant footnotes to this
    table.
(4)
Mr. Wakeham assumed the title and responsibilities of
    President in January 2010. He served as our Executive Vice
    President, Property Solutions, from April 2009 to January 2010
    and as our Senior Vice President, President, LeasingDesk Point
    of Lease Systems, for prior periods in 2009.
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(5)
Mr. Wakeham's salary was increased from $260,000 to
    $300,000 in April 2009 in conjunction with his promotion to
    Executive Vice President, Property Solutions.
(6)
Consists of (i) $1,304 of matching contributions under our
    401(k) savings plan, (ii) $43,510 of relocation related
    expense reimbursements and (iii) tax gross-up of $7,039
    associated with taxable relocation related expenses.
(7)
Ms. Chaffin Glover assumed the title and responsibilities
    of Executive Vice President, Multifamily Solutions in January
    2010. She served as our Executive Vice President, Resident
    Solutions from April 2009 to January 2010 and as our Senior Vice
    President, President, Velocity Utility and Billing Services, for
    prior periods in 2009.
(8)
Ms. Chaffin Glover's salary was increased from
    $260,000 to $300,000 in April 2009 in conjunction with her
    promotion to Executive Vice President, Resident Solutions.
(9)
Mr. Van Valkenberg commenced his employment with us in
    September 2009 and provided consulting services to us from June
    2009 to September 2009. His 2009 compensation represents the
    amounts paid to him as an employee from September 24, 2009
    to December 31, 2009 and as a consultant for prior periods
    in 2009.
(10)
Consists of (i) $125 of matching contributions under our
    401(k) savings plan, (ii) $7,742 of relocation related
    expense reimbursements, (iii) tax gross-up of $3,753
    associated with taxable relocation related expenses,
    (iv) $65,000 in consulting payments paid to
    Mr. Van Valkenberg in accordance with the terms of his
    consulting agreement prior to commencement of his full-time
    employment with us and (v) $19,717 in expense
    reimbursements paid to Mr. Van Valkenberg in
    accordance with the terms of his consulting agreement prior to
    commencement of his full-time employment with us.
Grants of
    Plan-Based Awards
The following table sets forth information regarding grants of
    compensation in the form of plan-based awards made during 2009
    to our named executive officers:
All Other Option
Awards:
Number of
Grant Date
Estimated Future Payouts Under
Securities
Exercise or Base
Fair Value of
Non-Equity Incentive Plan Awards
    ($)
(1)
Underlying
Price of Option
Option
Name
Grant Date
Minimum
Target
Maximum
Options (#)
Awards
    ($/Sh)
(2)
Awards
    ($)
(3)
Stephen T. Winn
2/26/2009
—
$
300,000
$
600,000
—
—
—
Timothy J. Barker
2/26/2009
—
—
—
250,000
(4)
$
3.00
$
320,631
2/26/2009
—
157,500
315,000
—
—
—
Dirk D. Wakeham
2/26/2009
—
—
—
200,000
(4)
3.00
256,505
2/26/2009
—
150,000
300,000
—
—
—
Ashley Chaffin Glover
2/26/2009
—
—
—
200,000
(4)
3.00
256,505
2/26/2009
—
150,000
300,000
—
—
—
William E. Van Valkenberg
9/28/2009
—
—
—
300,000
(5)
3.00
372,726
9/24/2009
—
40,685
81,370
—
—
—
(1)
Represents awards under our Management Incentive Plan for fiscal
    2009. The material terms of these annual incentive awards are
    discussed in this section under "Compensation Discussion
    and Analysis — Compensation Components —
    Performance-Based Bonuses."
(2)
In determining the exercise price of options granted in 2009,
    our compensation committee retained an independent valuation
    firm to complete a contemporaneous common stock valuation using
    the probability-weighted expected return method, which involved
    analyzing future values under two possible outcomes and then
    probability-weighting those values.
(3)
Reflects the aggregate grant date fair value computed in
    accordance with FASB ASC Topic 718. See Note 8 of Notes to
    Consolidated Financial Statements for the year ended
    December 31, 2009 for a discussion of assumptions made in
    determining the grant date fair value of our stock option awards.
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(4)
Stock options vest in equal quarterly installments over 16
    consecutive quarters commencing on the first day of the calendar
    quarter immediately following the grant date, subject to
    continued service through each applicable date.
(5)
Stock option vests with respect to 5% of the shares subject to
    the stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to continued service
    through each applicable date.
Outstanding
    Equity Awards at December 31, 2009
The following table sets forth information regarding equity
    awards held by our named executive officers as of
    December 31, 2009:
Option Awards
Number of
Number of
Securities
Securities
Underlying
Underlying
Unexercised
Exercised Options
Option
Options
That Have Not
Exercise
Option
Name
Exercisable (#)
(1)
Vested (#)
Price ($)
Expiration Date
Stephen T. Winn
—
—
—
—
Chairman of the Board and Chief
Executive Officer
Timothy J. Barker
250,000
—
$1.00
10/27/2015
Chief Financial Officer and Treasurer
75,000
25,000
$1.25
12/15/2016
65,625
84,375
$3.50
2/29/2018
46,875
203,125
$3.00
2/26/2019
Dirk D. Wakeham
156,250
93,750
$1.50
4/12/2017
President
65,625
84,375
$3.50
2/29/2018
37,500
162,500
$3.00
2/26/2019
Ashley Chaffin Glover
200,000
—
$1.00
3/3/2015
Executive Vice President, Multifamily
50,000
—
$1.00
12/13/2015
Solutions
37,500
12,500
$1.25
12/15/2016
43,750
56,250
$3.50
2/29/2018
37,500
162,500
$3.00
2/26/2019
William E. Van Valkenberg
15,000
285,000
$3.00
9/28/2019
Chief Legal Officer and Secretary
(1)
The listed stock options were granted under our 1998 Stock
    Incentive Plan. Stock options granted to Ms. Chaffin Glover
    and Messrs. Barker and Wakeham vest ratably over 16
    quarters commencing on the first day of the calendar quarter
    immediately following the grant date, subject to continued
    service through each applicable vesting date, and the stock
    option granted to Mr. Van Valkenberg vests with respect to
    5% of the shares subject to the stock option each quarter
    commencing on the first day of the calendar quarter immediately
    following the grant date for 15 consecutive quarters and the
    remaining 25% of the on the first day of the next following
    calendar quarter, subject to continued service through each
    applicable date.
Option
    Exercises and Stock Vested
None of our named executive officers exercised their outstanding
    stock options during 2009.
Pension
    Benefits and Nonqualified Deferred Compensation
We do not provide a pension plan for our employees and none of
    our named executive officers participated in a nonqualified
    deferred compensation plan during the year ended
    December 31, 2009.
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Employment
    Agreements
The following descriptions of the terms of the employment
    agreements with our named executive officers are intended as a
    summary only and are qualified in their entirety by reference to
    the employment agreements filed as exhibits to the registration
    statement of which this prospectus is a part.
Stephen
    T. Winn
We entered into an employment agreement with Stephen T. Winn,
    our Chief Executive Officer and Chairman of the Board, on
    December 30, 2003. The employment agreement with
    Mr. Winn provides for a base salary at a rate not less than
    $265,000 per year until December 31, 2003 and thereafter at
    a rate not less than $275,000 per year with a target annual
    bonus of not less than 50% of his base salary and a potential
    maximum annual bonus of up to 100% of his base salary based on
    the achievement of performance criteria established by our
    compensation committee. Mr. Winn's current base salary
    is $400,000 and target annual bonus is 100% of his annual base
    salary with a potential maximum annual bonus of up to 200% of
    his annual base salary.
Mr. Winn is entitled to four weeks paid vacation per year,
    is eligible to participate in all employee welfare benefits
    plans and other benefit programs made available generally to our
    employees or senior executives and is reimbursed for all
    reasonable business expenses including travel by private
    aircraft for business purposes of up to $150,000 per year.
    Additionally, we will make available to Mr. Winn all fringe
    benefits and perquisites that are made available to other senior
    executives. As part of his employment, Mr. Winn is entitled
    to payments upon termination of his employment in certain
    circumstances as described below under "Executive
    Compensation — Potential Payments Upon Termination or
    Change in Control — Arrangements with Stephen T.
    Winn." Our employment agreement with Mr. Winn, among
    other things, also includes confidentiality provisions and
    non-competition, non-interference and non-disparagement
    obligations during his employment and for a three-year period
    following termination.
Timothy
    J. Barker
We entered into an employment agreement with Timothy J. Barker,
    our Chief Financial Officer and Treasurer, on October 31,
    2005. On October 27, 2005, in accordance with the terms of
    his employment agreement, Mr. Barker was granted an option
    to purchase 500,000 shares of our common stock at an
    exercise price of $1.00. The stock option vests in equal
    quarterly installments over 16 consecutive quarters
    commencing on the first day of the calendar quarter immediately
    following the grant date, subject to continued service through
    each applicable date. We subsequently amended the employment
    agreement with Mr. Barker on January 1, 2010. As
    amended, the employment agreement with Mr. Barker provides
    for a base salary at a rate not less than $350,000 per year
    effective January 1, 2010. Under the terms of his amended
    employment agreement, Mr. Barker is eligible to receive a
    target annual bonus of 50% of his base salary and a potential
    maximum annual bonus of up to 100% of his base salary based on
    the achievement of performance criteria established by our
    compensation committee. Mr. Barker's current base
    salary is $350,000 and target annual bonus is 50% of his annual
    base salary with a potential maximum annual bonus of up to 100%
    of his annual base salary. On February 25, 2010, in
    accordance with the terms of his amended employment agreement,
    Mr. Barker was granted an option to purchase 350,000 shares
    of our common stock at an exercise price of $3.75. The stock
    option vests with respect to 5% of the shares subject to the
    stock option each quarter commencing on the first day of the
    calendar quarter immediately following the grant date for 15
    consecutive quarters and, with respect to the remaining 25% of
    the shares subject to the stock option, on the first day of the
    next following calendar quarter, subject to
    Mr. Barker's continued service through each applicable
    date.
Mr. Barker is entitled to three weeks paid vacation per
    year, is eligible to participate in all employee welfare
    benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Mr. Barker all fringe benefits
    and perquisites that are made available to other senior
    executives. As part of his employment, Mr. Barker is also
    entitled to payments and other benefits upon termination of his
    employment in certain circumstances, and our stock option
    agreements with Mr. Barker provide for accelerated vesting
    in
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connection with certain change in control transactions, as
    described below under "Executive Compensation —
    Potential Payments Upon Termination or Change in
    Control — Arrangements with Timothy J. Barker."
    Our amended employment agreement with Mr. Barker, among
    other things, also includes confidentiality provisions and
    non-competition, non-interference and non-disparagement
    obligations during his employment and for a one-year period
    following termination.
Dirk
    D. Wakeham
Multifamily Internet Ventures, LLC, which we acquired in
    April 2007, entered into an employment agreement with Dirk
    D. Wakeham, which was subsequently amended on April 12,
    2007. Mr. Wakeham has served as our President since January
    2010. As amended, the employment agreement with Mr. Wakeham
    provides for a base salary at a rate not less than $225,000 per
    year. Under the terms of his amended employment agreement,
    beginning in 2007, Mr. Wakeham is eligible to receive an
    annual bonus under the terms of our management incentive plan of
    50% of his base salary for achievement of the management
    incentive plan at 100% and the potential to receive up to 100%
    of his base salary if the performance criteria stipulated in the
    management incentive plan is exceeded. Mr. Wakeham's
    current base salary is $330,000 and target annual bonus is 62.5%
    of his annual base salary with a potential maximum annual bonus
    of up to 125% of his annual base salary. In addition,
    Mr. Wakeham received a one-time lump sum payment of $14,700
    following the closing of our acquisition of Multifamily Internet
    Ventures, LLC, which amount represented the difference between
    the amount he was paid by Multifamily Internet Ventures, LLC,
    for the period from January 1, 2007 and April 12, 2007
    and the amount he would have been paid during such period if he
    had been paid at the base salary specified in his employment
    agreement. On April 12, 2007, in accordance with the terms
    of his employment agreement, Mr. Wakeham was granted an
    option to purchase 250,000 shares of our common stock at an
    exercise price of $1.50. The stock option vests in equal
    quarterly installments over 16 consecutive quarters
    commencing on the first day of the calendar quarter immediately
    following the grant date, subject to continued service through
    each applicable date.
Mr. Wakeham is entitled to three weeks paid vacation per
    year, is eligible to participate in all employee welfare
    benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Mr. Wakeham all fringe benefits
    and perquisites that are made available to other senior
    executives. As part of his employment, Mr. Wakeham is also
    entitled to certain payments upon termination of his employment
    in certain circumstances as described below under
    "Executive Compensation — Potential Payments Upon
    Termination or Change in Control — Arrangements with
    Our Other Named Executive Officers." Our employment
    agreement with Mr. Wakeham, among other things, also
    includes confidentiality provisions and non-interference and
    non-disparagement obligations during his employment and for a
    period of 24 months following termination.
Ashley
    Chaffin Glover
We entered into an employment agreement with Ashley Chaffin
    Glover on March 3, 2005. Ms. Chaffin Glover has served as
    our Executive Vice President, Multifamily Solutions since
    January 2010. The employment agreement with Ms. Chaffin
    Glover provides for a base salary at a rate not less than
    $150,000 per year. Under the terms of her employment agreement,
    beginning in 2005, Ms. Chaffin Glover is eligible to
    receive a target annual bonus of 40% of her base salary and a
    potential maximum annual bonus of up to 80% of her base salary
    based on the achievement of performance criteria established by
    our compensation committee. Ms. Chaffin Glover's
    annual bonus opportunity for 2005 was prorated for the portion
    of 2005 that she was employed by us. Ms. Chaffin
    Glover's current base salary is $320,000 and target annual
    bonus is 50% of her annual base salary with a potential maximum
    annual bonus of up to 100% of her annual base salary. On
    March 3, 2005, in accordance with the terms of her
    employment agreement, Ms. Chaffin Glover was granted an
    option to purchase 200,000 shares of our common stock at an
    exercise price of $1.00. The stock option vests in equal
    quarterly installments over 16 consecutive quarters
    commencing on the first day of the calendar quarter immediately
    following the grant date, subject to continued service through
    each applicable date.
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Ms. Chaffin Glover is entitled to three weeks paid vacation
    per year, is eligible to participate in all employee welfare
    benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Ms. Chaffin Glover all fringe
    benefits and perquisites that are made available to other senior
    executives. As part of her employment, Ms. Chaffin Glover
    is also entitled to certain payments upon termination of her
    employment in certain circumstances as described below under
    "Executive Compensation — Potential Payments Upon
    Termination or Change in Control — Arrangements with
    Our Other Named Executive Officers." Our employment
    agreement with Ms. Chaffin Glover, among other things, also
    includes confidentiality provisions and non-competition,
    non-interference and non-disparagement obligations during her
    employment and for a one-year period following termination.
William
    E. Van Valkenberg
We entered into an employment agreement with William E. Van
    Valkenberg, Chief Legal Officer and Secretary, on
    September 24, 2009. The employment agreement with
    Mr. Van Valkenberg provides for a base salary at a rate not
    less than $300,000 per year. Under the terms of his employment
    agreement, beginning in 2009, Mr. Van Valkenberg is
    eligible to receive an annual bonus under the terms of our
    management incentive plan of 50% of his base salary for
    achievement of the management incentive plan at 100% and the
    potential to receive up to 100% of his base salary if the
    performance criteria for this potential is achieved as set forth
    in the management incentive plan. Mr. Van Valkenberg's
    annual bonus opportunity under the 2009 Management Incentive
    Plan was subject to proration based on the actual number of days
    he was employed by us during the year.
    Mr. Van Valkenberg's current base salary is
    $300,000 and target annual bonus is 50% of his annual base
    salary with a potential maximum annual bonus of up to 100% of
    his annual base salary. In addition,
    Mr. Van Valkenberg will be reimbursed up to $125,000
    for relocation expenses (excluding payment of commissions or
    other costs associated with buying or selling a home) associated
    with his relocation to Dallas. Prior to his relocation to
    Dallas, Texas, we also paid for a furnished two bedroom
    apartment within proximity to our office for
    Mr. Van Valkenberg's use and reimbursed travel
    expenses for him and his spouse in accordance with our standard
    travel policy. On September 28, 2009, in accordance with
    the terms of his employment agreement,
    Mr. Van Valkenberg was granted an option to purchase
    300,000 shares of our common stock at an exercise price of
    $3.00. The stock option vests with respect to 5% of the shares
    subject to the stock option each quarter commencing on the first
    day of the calendar quarter immediately following the grant date
    for 15 consecutive quarters and, with respect to the remaining
    25% of the shares subject to the stock option, on the first day
    of the next following calendar quarter, subject to continued
    service through each applicable date.
    Mr. Van Valkenberg is entitled to three weeks paid
    vacation per year, is eligible to participate in all employee
    welfare benefits plans and other benefit programs made available
    generally to our employees or senior executives and is
    reimbursed for all reasonable business expenses. Additionally,
    we will make available to Mr. Van Valkenberg all
    fringe benefits and perquisites that are made available to other
    senior executives. As part of his employment,
    Mr. Van Valkenberg is also entitled to certain
    payments upon termination of his employment in certain
    circumstances as described below under "Executive
    Compensation — Potential Payments Upon Termination or
    Change in Control — Arrangements with Our Other Named
    Executive Officers." Our employment agreement with
    Mr. Van Valkenberg, among other things, also includes
    confidentiality provisions and non-competition, non-interference
    and non-disparagement obligations during his employment and for
    a period of six months following termination.
Prior to entering into the employment agreement with
    Mr. Van Valkenberg, we entered into a consulting agreement
    with Mr. Van Valkenberg on June 28, 2009. Under the
    consulting agreement, Mr. Van Valkenberg performed legal
    consulting services for us on a
project-by-project
basis in exchange for consulting fees in the amount of $1,000
    per day. In addition, Mr. Van Valkenberg was entitled to
    reimbursement for his reasonable out-of-pocket expenses related
    to the consulting services. The consulting agreement with
    Mr. Van Valkenberg, among other things, included
    confidentiality and intellectual property assignment provisions
    and employee non-solicitation obligations during the consulting
    period and for a period of 12 months following termination.
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Potential
    Payments upon Termination or Change in Control
Our employment agreements with our named executive officers
    provide for payments in the event of termination of employment
    in certain circumstances, and our stock option agreements with
    Mr. Barker provide for accelerated vesting in connection
    with certain change in control transactions. In addition, all
    outstanding stock options granted to our named executive
    officers would become 100% vested upon the named executive
    officer's death or disability (as defined in
    Section 22(e)(3) of the Internal Revenue Code) pursuant to
    the terms of our 1998 Stock Incentive Plan. The descriptions and
    tables that follow describe the payments and benefits that we
    would owe to each of our named executive officers, pursuant to
    the applicable employment and stock option agreements with our
    named executive officers and our 1998 Stock Incentive Plan, and
    are qualified in their entirety by reference to the relevant
    agreements and our 1998 Stock Incentive Plan filed as exhibits
    to the registration statement of which this prospectus is a part.
Definition
    of "Cause"
Under the employment agreements with our named executive
    officers, "Cause" is generally defined as the
    occurrence of any of the following events:
•
conviction for criminal acts;
•
making a materially false statement to our auditors or legal
    counsel;
•
falsification of any corporate document or form;
•
any material breach by the named executive officer of his or her
    material obligations to us or of any published company policy;
•
any material breach by the named executive officer of the
    provisions of his or her employment agreement;
•
making a material misrepresentation of fact or omission to
    disclose material facts in relation to transactions occurring in
    our business and financial matters; and
•
continued performance of his or her duties in an incompetent,
    unprofessional, unsuccessful, insubordinate or negligent manner.
Pursuant to the terms of their employment agreements, certain of
    our named executive officers have the ability to cure one or
    more of the foregoing breaches prior to termination, generally
    within ten days after receipt of written notice of breach.
Definition
    of Good Reason
Under the terms of the employment agreements of our named
    executive officers, "Good Reason" is generally defined
    as any material failure on our part to comply with any of our
    material obligations under the employment agreement, which
    failure has not been cured within ten calendar days after
    written notice has been given to us. Additionally, the
    employment agreement with Mr. Winn further provides that
    our failure to continue his status as President and Chief
    Executive Officer or to accord him the powers, duties, reporting
    responsibilities and perquisites contemplated in his employment
    agreement shall constitute good reason.
Definition
    of Disability
Under our employment agreements with each of our named executive
    officers, we may terminate the named executive officer's
    employment for "disability" if, as a result of the
    named executive officer's incapacity due to physical or
    mental illness, he or she has been absent from his or her duties
    on a full-time basis for (i) a period of six consecutive
    months or (ii) for shorter periods aggregating six months
    during any 12 month period.
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Arrangements
    with Stephen T. Winn
Pursuant to our employment agreement with Mr. Winn, in the
    event of his termination by reason of death or disability,
    Mr. Winn is entitled to receive salary continuation
    payments in an aggregate amount equal to 50% of his current
    salary in six equal monthly installments and a lump sum cash
    payment equal to any earned but unpaid salary and bonus and any
    accrued but unused vacation.
In addition, except in the event of our liquidation, dissolution
    or winding up, whether voluntary or involuntary, or cessation of
    our business in the ordinary course for any reason, if
    Mr. Winn's employment is terminated by us without
    cause or by Mr. Winn for good reason, Mr. Winn is
    entitled to a lump sum payment equal to 150% of his annual base
    salary payable within five days of his termination and 100% of
    his target annual bonus for the year payable after the year end
    based on achievement of any criteria or conditions to payment
    that are contingent on our earnings or other financial
    performance for the year.
Arrangements
    with Timothy J. Barker
Pursuant to our amended employment agreement with
    Mr. Barker, in the event of termination by reason of death
    or disability, by us without cause or by Mr. Barker for
    good reason, Mr. Barker is entitled to receive salary
    continuation payments in an aggregate amount equal to 50% of his
    current annual salary in six equal monthly installments and a
    lump sum cash payment equal to any earned but unpaid salary and
    bonus and any accrued but unused vacation as of the termination
    date. In the event such termination occurs within twelve months
    following the consummation of a "business combination
    transaction," the salary continuation payments to
    Mr. Barker would be increased to an aggregate amount equal
    to 100% of his annual base salary payable in twelve equal
    monthly installments under the terms of his amended employment
    agreement. The salary continuation payments are conditioned upon
    Mr. Barker executing a full release and covenant not to sue
    on or before the thirtieth day following his termination.
Additionally, the stock option agreements related to our stock
    option grants to Mr. Barker on February 26, 2009,
    February 29, 2008, December 15, 2006 and
    October 27, 2005 provide that 100% of the unvested options
    subject to the agreements will fully vest upon a "business
    combination transaction." The stock option agreement
    related to our stock option grant to Mr. Barker on
    February 25, 2010 provides that 50% of the unvested options
    subject to the agreement will fully vest upon a "business
    combination transaction" and 100% of the unvested options
    subject to the agreement will fully vest if Mr. Barker
    ceases to be a service provider for any reason other than for
    Cause (as defined in Mr. Barker's amended employment
    agreement) within one year of the consummation of a
    "business combination transaction."
For purposes of Mr. Barker's amended employment
    agreement and stock option agreements, a "business
    combination transaction" is defined to include our merger
    with or into another entity where we are not the surviving
    entity, our dissolution, the sale of all or substantially all
    our assets and the transfer of beneficial ownership representing
    40% or more of the voting power of our then outstanding
    securities to a person or group other than Seren Capital, Ltd.,
    Stephen T. Winn, affiliates of Stephen T. Winn and a trustee or
    other fiduciary holding securities under one of our employee
    benefit plans.
Arrangements
    with Our Other Named Executive Officers
Pursuant to our employment agreements with each of
    Ms. Chaffin Glover and Messrs. Van Valkenberg and
    Wakeham, in the event of termination by reason of death or
    disability, by us without cause or by the named executive
    officer for good reason, each of these named executive officers
    is entitled to receive salary continuation payments in an
    aggregate amount equal to 50% of their current annual salary and
    a lump sum cash payment equal to any earned but unpaid salary
    and bonus and any accrued but unused vacation as of the
    termination date. The salary continuation payments to
    Ms. Chaffin Glover are payable in twelve equal monthly
    installments at an amount per installment equal to one
    twenty-fourth of Ms. Chaffin Glover's current annual
    salary. The salary continuation payments to Messrs. Van
    Valkenberg and Wakeham are payable in six equal monthly
    installments at an amount per installment equal to one-twelfth
    of the named executive officer's current annual salary. The
    salary continuation payments are conditioned upon the named
    executive officer executing a full release and covenant not to
    sue on or before the thirtieth day following termination.
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The following table provides the total dollar value of the
    compensation that would be paid to each of our named executive
    officers assuming a change in control or the termination of his
    or her employment in certain defined circumstances on
    December 31, 2009, pursuant to the arrangements described
    above:
Termination on
Death or
Disability or
Without Cause
or Good Reason
Termination
Within 12 Months of a
Termination on
without
Business
Business
Death or
Death or
Cause or for
Combination
Combination
Named Executive Officer
Compensation
Disability
Disability
Good Reason
Transaction
Transaction
Stephen T. Winn
Severance Payment
—
—
$600,000
(1)
—
—
Salary Continuation
—
$200,000
—
—
—
Bonus
—
—
300,000
(1),(2)
—
—
Total
—
$200,000
$900,000
—
Timothy J. Barker
Salary Continuation
—
$157,500
(3)
$157,500
(3)
—
$315,000
(6)
Option Acceleration
$39,500
(4)
—
—
$39,500
(5),(6)
—
Total
$39,500
$157,500
$157,500
$39,500
$315,000
Dirk D. Wakeham
Salary Continuation
—
$150,000
$150,000
—
—
Option Acceleration
$124,688
(4)
—
—
—
—
Total
$124,688
$150,000
$150,000
—
—
Ashley Chaffin Glover
Salary Continuation
—
$150,000
$150,000
—
—
Option Acceleration
$19,750
(4)
—
—
—
—
Total
$19,750
$150,000
$150,000
—
—
William E. Van Valkenberg
Salary Continuation
—
$150,000
$150,000
—
—
Option Acceleration
—
—
—
—
Total
—
$150,000
$150,000
—
—
(1)
Amount would not be paid in the event of Mr. Winn's
    termination in connection with our liquidation, dissolution or
    winding up, whether voluntary or involuntary, or cessation of
    our business in the ordinary course for any reason.
(2)
Value represents target bonus for Mr. Winn for 2009.
    Subject to achievement of any criteria or conditions to the
    payment of Mr. Winn's target bonus which are
    contingent on our earnings or other financial performance for
    the year.
(3)
Amount of salary continuation payment if termination is not
    within twelve months following the consummation of a business
    combination transaction.
(4)
Value represents the gain our named executive officers would
    receive, calculated as the positive difference between our stock
    price on December 31, 2009 and the exercise price of the
    named executive officer's unvested options subject to
    acceleration upon the named executive officer's death or
    disability pursuant to our 1998 Stock Incentive Plan. On
    December 31, 2009, our stock price was $2.83.
(5)
Value represents the gain Mr. Barker would receive,
    calculated as the positive difference between our stock price on
    December 31, 2009 and the exercise price of
    Mr. Barker's unvested options subject to acceleration
    upon a business combination transaction pursuant to the terms of
    certain of his stock option agreements with us. On
    December 31, 2009, our stock price was $2.83.
(6)
Amount reflects payments that would have been made pursuant to
    Mr. Barker's employment agreement, as amended on
    January 1, 2010, if the amended employment agreement had
    been in effect on December 31, 2009 in order to provide
    meaningful, current information.
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Employee
    Benefit Plans
Amended
    and Restated 1998 Stock Incentive Plan
Our Amended and Restated 1998 Stock Incentive Plan, or our 1998
    Stock Incentive Plan, was first adopted by our board of
    directors on November 24, 1998 and approved by our
    stockholders on November 24, 1998. The 1998 Stock Incentive
    Plan has been amended and restated. The 1998 Stock Incentive
    Plan has a ten year term, which was restarted in an amendment
    and restatement of the 1998 Stock Incentive Plan in
    April 2010. Our 1998 Stock Incentive Plan provides for the
    grant of incentive stock options, within the meaning of
    Section 422 of the Internal Revenue Code to our employees
    and any parent and subsidiary corporations' employees, and
    for the grant of non-qualified stock options, stock appreciation
    rights, restricted stock and performance units to our employees
    and consultants and any parent and subsidiary corporations'
    employees and consultants.
We have reserved a total of 20,000,000 shares of our common
    stock for issuance pursuant to the 1998 Stock Incentive Plan. As
    of December 31, 2009, options to purchase
    15,707,456 shares of common stock were outstanding and
    732,285 shares were available for future grant under the
    1998 Stock Incentive Plan.
Our compensation committee administers our 1998 Stock Incentive
    Plan. Under our 1998 Stock Incentive Plan, our compensation
    committee has the power to determine the terms of the awards,
    including the employees and consultants who will receive awards,
    the exercise price, the number of shares subject to each award,
    the vesting schedule and exercisability of awards and the manner
    of payment of the exercise price of the award. The administrator
    also has the authority to institute an exchange program whereby
    the exercise prices of outstanding awards may be increased or
    reduced, outstanding awards may be surrendered or cancelled in
    exchange for awards with a higher or lower exercise price, or
    outstanding awards may be transferred to a third party.
With respect to all stock options granted under the 1998 Stock
    Incentive Plan, the exercise price must at least be equal to the
    fair market value of our common stock on the date of grant and
    the term of an option may not exceed ten years, except that with
    respect to incentive stock options granted to any participant
    who owns more than 10% of the voting power of all classes of our
    outstanding stock as of the grant date, the term must not exceed
    five years and the exercise price must equal at least 110% of
    the fair market value on the grant date.
After termination of an employee or consultant, he or she may
    exercise his or her option for the period of time stated in the
    option agreement, or if not so stated, for 30 days
    following termination in the case of an employee holding options
    or stock appreciation rights granted before February 22,
    2008, for 90 days following termination in the case of an
    employee holding options or stock appreciation rights granted on
    or after February 22, 2008 and for 30 days following
    termination in the case of a consultant holding options or stock
    appreciation rights. If termination of an employee is due to
    disability or death, the option will become 100% vested and will
    remain exercisable for 12 months after the date of such
    employee's death or disability, but in no event later than
    the date on which the option or stock appreciation right
    terminates. Notwithstanding the foregoing, our compensation
    committee may provide for more restrictive periods of exercise
    or for forfeiture of awards or cash or common stock received
    pursuant to awards if an employee is terminated for cause or
    commits enumerated actions harmful to our interests within one
    year following a voluntary termination.
Restricted stock grants may be made alone, in addition to or in
    tandem with other awards granted under our 1998 Stock Incentive
    Plan. Restricted stock grants are grants of shares of our common
    stock subject to forfeiture restrictions that lapse in
    accordance with terms and conditions established by our
    compensation committee. Our compensation committee determines
    the number of shares subject to a restricted stock grant to any
    employee or consultant and may impose whatever conditions to the
    lapse of forfeiture restrictions it determines to be
    appropriate. Unless our compensation committee determines
    otherwise, shares subject to restricted stock grants that are
    still subject to forfeiture restrictions upon termination of the
    purchaser's service with us are automatically forfeited.
    However, unless provided otherwise in the agreement relating to
    a restricted stock grant, forfeiture restrictions shall lapse
    with respect to restricted stock grants made to an employee upon
    such employee's death, disability, or retirement from
    active employment at or after age 65.
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Our 1998 Stock Incentive Plan provides that upon the occurrence
    of a "business combination transaction," each option,
    stock appreciation right and performance unit will terminate
    upon the effective date of such transaction (provided that
    holders of vested stock appreciation rights will receive cash
    equal to the amount they would have received upon exercise of
    the vested right and holders of performance units will receive
    the prorated value of such unit as if all applicable performance
    objectives had been met) and all forfeiture restrictions
    applicable to restricted stock grants shall continue in full
    force and effect, unless otherwise provided in the agreement
    relating to an award or the provision of substitute securities
    of another corporation arising without the necessity of the
    action of our board of directors is made in connection with the
    transaction. Our 1998 Stock Incentive Plan defines
    "business combination transactions" to include our
    merger with or into another corporation, our dissolution, the
    sale of substantially all of our assets and the transfer of
    beneficial ownership of securities representing 40% or more of
    the voting power of our then outstanding securities to a person
    or group other than Seren Capital, Ltd., Stephen T. Winn,
    affiliates of Stephen T. Winn and a trustee or other fiduciary
    holding securities under one of our employee benefit plans.
Unless our compensation committee otherwise provides in the
    agreement governing a non-qualified stock option, non-qualified
    stock options or stock appreciation rights granted before
    September 28, 2009, may be transferred by the holder to
    members of the holder's immediate family, trusts for the
    benefit of such immediate family members and partnerships in
    which such immediate family members are the only partners,
    provided that no consideration is provided for the transfer.
    Incentive stock options and performance units granted before
    September 28, 2009 and all awards granted on and after
    September 28, 2009 under the 1998 Stock Incentive Plan,
    unless determined otherwise by our compensation committee, are
    generally not transferable other than by will or the laws of
    descent and distribution, and may be exercised only during the
    lifetime of the participant and only by such participant.
Our board of directors has the authority to amend, alter,
    suspend or terminate the 1998 Stock Incentive Plan provided such
    action does not impair the rights of any participant without the
    written consent of such participant. In February 2010, our board
    of directors terminated our ability to make grants under our
    1998 Stock Incentive Plan effective upon the closing of this
    offering. Following the closing of this offering, we will grant
    equity awards under our 2010 Equity Incentive Plan. However, our
    1998 Stock Incentive Plan will continue to govern the terms and
    conditions of all outstanding equity awards granted under our
    1998 Stock Incentive Plan.
2010
    Equity Incentive Plan
Our board of directors adopted our 2010 Equity Incentive Plan on
    February 26, 2010 to be effective upon completion of this
    offering subject to the approval of our stockholders. We expect
    our stockholders will approve the 2010 Equity Incentive Plan
    prior to the completion of this offering. Our 2010 Equity
    Incentive Plan provides for the grant of incentive stock
    options, within the meaning of Section 422 of the Internal
    Revenue Code, to our employees and any parent and subsidiary
    corporations' employees, and for the grant of nonstatutory
    stock options, restricted stock, restricted stock units, stock
    appreciation rights, performance units and performance shares to
    our employees, directors and consultants and our parent and
    subsidiary corporations' employees and consultants.
The total number of shares of our common stock reserved for
    issuance pursuant to the 2010 Equity Incentive Plan will be
    determined by our board of directors prior to its effectiveness.
    The total number of shares of our common stock reserved under
    our 2010 Equity Incentive Plan will be increased by (a) any
    shares which have been reserved but not issued under our 1998
    Stock Incentive Plan and are not subject to any awards granted
    thereunder, and (b) any shares subject to stock options or
    similar awards granted under the 1998 Stock Incentive Plan that
    expire or otherwise terminate without having been exercised in
    full and shares issued pursuant to awards granted under the 1998
    Stock Incentive Plan that are forfeited to or repurchased by us.
    The maximum number of shares that may be added to the 2010
    Equity Incentive Plan from the 1998 Stock Incentive Plan
    is          shares.
    In addition, our 2010 Equity Incentive Plan provides for annual
    increases in
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the number of shares available for issuance thereunder on the
    first day of each fiscal year, beginning with our 2011 fiscal
    year, equal to the least of:
•
shares
    of our common stock;
•
of
    our outstanding shares on the last day of the immediately
    preceding fiscal year; or
•
such other amount as our board of directors may determine.
If an award expires or becomes unexercisable without having been
    exercised in full, is surrendered pursuant to an exchange
    program, or, with respect to restricted stock, restricted stock
    units, performance shares or performance units, is forfeited to
    or repurchased by us, the unpurchased shares (or for awards
    other than options and stock appreciation rights, the forfeited
    or repurchased shares) which were subject thereto will become
    available for future grant or sale under our 2010 Equity
    Incentive Plan. Upon exercise of a stock appreciation right
    settled in shares, only shares actually issued pursuant to the
    stock appreciation right will cease to be available under our
    2010 Equity Incentive Plan. Shares used to pay the exercise
    price of an award or to satisfy the tax withholding obligations
    related to an award will become available for future grant or
    sale under our 2010 Equity Incentive Plan. Shares that have
    actually been issued under our 2010 Equity Incentive Plan under
    any award will not be returned to our 2010 Equity Incentive Plan
    and will not become available for future distribution under our
    2010 Equity Incentive Plan; provided, however, that if shares of
    restricted stock, restricted stock units, performance shares or
    performance units are repurchased by us or are forfeited to us,
    such shares will become available for future grant under our
    2010 Equity Incentive Plan. To the extent an award is paid out
    in cash rather than stock, such cash payment will not reduce the
    number of shares available for issuance under our 2010 Equity
    Incentive Plan.
If we declare a dividend or other distribution or engage in a
    recapitalization, stock split, reverse stock split,
    reorganization, merger, consolidation,
split-up,
spin-off, combination, repurchase, or exchange of shares or
    other securities of the Company, or other change in the
    corporate structure of the Company affecting our shares, the
    administrator will adjust the (i) number and class of
    shares available for issuance under our 2010 Equity Incentive
    Plan, (ii) number, class and price of shares subject to
    outstanding awards, and (iii) specified per-person limits
    on awards to reflect the change.
Our board of directors or a committee of our board will
    administer our 2010 Equity Incentive Plan. To the extent the
    administration determines it desirable to qualify awards granted
    under our 2010 Equity Incentive Plan as "performance based
    compensation" within the meaning of Section 162(m) of
    the Internal Revenue Code, the committee will consist of two or
    more "outside directors" within the meaning of
    Section 162(m) of the Internal Revenue Code. The
    administrator has the power to select the employees, consultants
    and directors who will receive awards, to determine the terms of
    the awards, including the exercise price, the number of shares
    subject to each such award, the exercisability of the awards and
    the form of consideration payable upon exercise. The
    administrator also has the authority to institute an exchange
    program whereby the exercise prices of outstanding awards may be
    increased or reduced, outstanding awards may be surrendered or
    cancelled in exchange for awards with a higher or lower exercise
    price, or outstanding awards may be transferred to a third party.
The exercise price of options granted under our 2010 Equity
    Incentive Plan must at least be equal to the fair market value
    of our common stock on the date of grant. The term of an
    incentive stock option may not exceed ten years, except that
    with respect to any participant who owns more than 10% of the
    voting power of all classes of our outstanding stock as of the
    grant date, the term must not exceed five years and the exercise
    price must equal at least 110% of the fair market value on the
    grant date. The administrator determines the terms of all other
    options.
After termination of an employee, director or consultant, he or
    she may exercise his or her option for the period of time stated
    in the option agreement. Generally, if termination is due to
    death or disability, the option will remain exercisable for
    twelve months. In all other cases, the option will generally
    remain exercisable for three months. However, an option
    generally may not be exercised later than the expiration of its
    term.
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Stock appreciation rights may be granted under our 2010 Equity
    Incentive Plan. Stock appreciation rights allow the recipient to
    receive the appreciation in the fair market value of our common
    stock between the exercise date and the date of grant. The
    administrator determines the terms of stock appreciation rights,
    including when such rights become exercisable and whether to pay
    the increased appreciation in cash or with shares of our common
    stock, or a combination thereof. The exercise price of stock
    appreciation rights granted under our 2010 Equity Incentive Plan
    must at least be equal to 100% of the fair market value of our
    common stock on the date of grant. Stock appreciation rights
    expire under the same rules that apply to stock options.
Restricted stock may be granted under our 2010 Equity Incentive
    Plan. Restricted stock awards are shares of our common stock
    that vest in accordance with terms and conditions established by
    the administrator. The administrator will determine the number
    of shares of restricted stock granted to any service provider.
    The administrator may impose whatever conditions to vesting it
    determines to be appropriate. For example, the administrator may
    set restrictions based on the achievement of specific
    performance goals. Shares of restricted stock that do not vest
    are subject to our right of repurchase or forfeiture.
Our 2010 Equity Incentive Plan provides for an automatic grant
    to outside directors of a nondiscretionary award of restricted
    stock on April 1 of each year, beginning in 2011, equal to
    $50,000 in value on the grant date (rounded up to the nearest
    whole share). This automatic restricted stock award will be
    issued for no cash consideration and will be forfeited and
    automatically transferred to and reacquired by us at no cost if
    the director ceases services as a member of our board of
    directors. This forfeiture provision will lapse as to 5% of the
    award on the first day of each calendar quarter for 15
    consecutive calendar quarters beginning on first day of the
    calendar quarter immediately following the date of grant, and as
    to the remaining 25% of the award on the first day of the
    calendar quarter immediately following such fifteenth
    consecutive quarter, subject to the grantee's continued
    service as a director through each such date.
Restricted stock units may be granted under our 2010 Equity
    Incentive Plan. Restricted stock units are awards that will
    result in a payment to a participant at the end of a specified
    period only if performance goals established by the
    administrator are achieved or the award otherwise vests. The
    administrator may impose whatever conditions to vesting,
    restrictions and conditions to payment it determines to be
    appropriate. For example, the administrator may set restrictions
    based on the achievement of specific performance goals, on the
    continuation of service or employment or any other basis
    determined by the administrator. Payments of earned restricted
    stock units may be made, in the administrator's discretion,
    in cash or with shares of our common stock, or a combination
    thereof.
Performance units and performance shares may be granted under
    our 2010 Equity Incentive Plan. Performance units and
    performance shares are awards that will result in a payment to a
    participant only if performance goals established by the
    administrator are achieved or the awards otherwise vest. The
    administrator will establish organizational or individual
    performance goals in its discretion, which, depending on the
    extent to which they are met, will determine the number
and/or
the
    value of performance units and performance shares to be paid out
    to participants. Performance units shall have an initial dollar
    value established by the administrator prior to the grant date.
    Performance shares shall have an initial value equal to the fair
    market value of our common stock on the grant date. Payment for
    performance units and performance shares may be made in cash or
    in shares of our common stock with equivalent value, or in some
    combination, as determined by the administrator.
Unless the administrator provides otherwise, our 2010 Equity
    Incentive Plan does not allow for the transfer of awards and
    only the recipient of an award may exercise an award during his
    or her lifetime.
Our 2010 Equity Incentive Plan provides that in the event of our
    change in control, as defined in the 2010 Equity Incentive Plan,
    each outstanding award will be treated as the administrator
    determines, including that the successor corporation or its
    parent or subsidiary will assume or substitute an equivalent
    award for each outstanding award. The administrator is not
    required to treat all awards similarly. If there is no
    assumption or substitution of outstanding awards, the awards
    will fully vest, all restrictions will lapse, all awards with
    performance-based vesting will have all performance goals deemed
    achieved at 100% of target levels and all other terms and
    conditions met and the awards will become fully exercisable. The
    administrator will provide notice to the recipient that he or
    she has the right to exercise the option and stock appreciation
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right as to all of the shares subject to the award. The option
    or stock appreciation right will terminate upon the expiration
    of the period of time the administrator provides in the notice.
    In the event the service of an outside director is terminated on
    or following a change in control, other than pursuant to a
    voluntary resignation, his or her options and stock appreciation
    rights that are not assumed or substituted in the change in
    control will fully vest and become immediately exercisable, all
    restrictions on restricted stock will lapse and all performance
    goals or other vesting requirements for performance shares and
    units will be deemed achieved and all other terms and conditions
    met.
Our 2010 Equity Incentive Plan will automatically terminate in
    2020, unless we terminate it sooner. In addition, our board of
    directors has the authority to amend, alter, suspend or
    terminate the 2010 Equity Incentive Plan provided such action
    does not impair the rights of any participant without the
    written consent of such participant.
401(k)
    Retirement Plan
We maintain a 401(k) plan which covers substantially all of our
    employees. The 401(k) plan is an essential part of the
    retirement package needed to attract and retain employees in our
    industry. The 401(k) plan permits employees to contribute a
    portion of their compensation to the plan on a pre-tax basis, up
    to a 2010 statutory limit of $16,500. For employees
    50 years of age or older, an additional
catch-up
contribution of $5,500 is allowable. We may provide a matching
    contribution, the amount of which is determined at our
    discretion. For 401(k) contributions made in calendar 2009, we
    matched an amount equal to 25% of each participant's
    elective deferral, up to 6% of a participant's compensation.
Limitations
    on Liability and Indemnification Matters
We expect that our amended and restated certificate of
    incorporation, to be effective upon the completion of this
    offering, will contain provisions that limit the liability of
    our directors for monetary damages to the fullest extent
    permitted by Delaware law. Consequently, our directors will not
    be personally liable to us or our stockholders for monetary
    damages for any breach of fiduciary duties as directors, except
    liability for:
•
any breach of the director's duty of loyalty to us or our
    stockholders;
•
any act or omission not in good faith or that involves
    intentional misconduct or a knowing violation of law;
•
unlawful payments of dividends or unlawful stock repurchases or
    redemptions as provided in Section 174 of the Delaware
    General Corporation Law; or
•
any transaction from which the director derived an improper
    personal benefit.
We expect that our amended and restated certificate of
    incorporation and amended and restated bylaws, to be effective
    upon the completion of this offering, will provide that we are
    required to indemnify our directors and officers, in each case
    to the fullest extent permitted by Delaware law. We expect that
    our amended and restated bylaws also will provide that we are
    obligated to advance expenses incurred by a director or officer
    in advance of the final disposition of any action or proceeding,
    and permit us to secure insurance on behalf of any officer,
    director, employee or other agent for any liability arising out
    of his or her actions in that capacity regardless of whether we
    would otherwise be permitted to indemnify him or her under the
    provisions of Delaware law. Prior to completion of this
    offering, we expect to enter into agreements to indemnify our
    directors, executive officers and other employees as determined
    by our board of directors. With specified exceptions, these
    agreements will provide for indemnification for related expenses
    including, among other things, attorneys' fees, judgments,
    fines and settlement amounts incurred by any of these
    individuals in any action or proceeding. We believe that these
    bylaw provisions and indemnification agreements are necessary to
    attract and retain qualified persons as directors and officers.
    We also maintain directors' and officers' liability
    insurance.
The limitation of liability and indemnification provisions we
    expect to be included in our amended and restated certificate of
    incorporation and amended and restated bylaws, to be effective
    upon the completion of
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this offering, may discourage stockholders from bringing a
    lawsuit against our directors and officers for breach of their
    fiduciary duty. They may also reduce the likelihood of
    derivative litigation against our directors and officers, even
    though an action, if successful, might benefit us and other
    stockholders. Further, a stockholder's investment may be
    adversely affected to the extent that we pay the costs of
    settlement and damage awards against directors and officers as
    required by these indemnification provisions. At present, there
    is no pending litigation or proceeding involving any of our
    directors, officers or employees for which indemnification is
    sought, and we are not aware of any threatened litigation that
    may result in claims for indemnification.
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CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Since January 1, 2007, there has not been, nor is there
    currently proposed, any transaction or series of similar
    transactions to which we were or are a party in which the amount
    involved exceeded or exceeds $120,000 and in which any of our
    directors, executive officers, holders of more than 5% of any
    class of our voting securities, or any member of the immediate
    family of any of the foregoing persons, had or will have a
    direct or indirect material interest, other than compensation
    arrangements with directors and executive officers, which are
    described where required in this prospectus under
    "Executive Compensation", and the transactions
    described below.
Private
    Placement Financings
In February 2008, we sold 3,025,000 shares of our
    Series C Convertible Preferred Stock at a price of $4.50
    per share for an aggregate price of $13,612,500, all of which
    were sold to investors that are our affiliates, including
    Timothy J. Barker, Apax Excelsior VI, L.P. and affiliated
    entities, or the Apax Funds, and Camden Strategic Fund III,
    L.P. and affiliated entities, or the Camden Funds. The Camden
    Funds are not affiliated with Camden Property Trust.
Registration
    Rights Agreement
In connection with our Series C financing described above,
    we entered into a Second Amended and Restated Registration
    Rights Agreement, or the Registration Rights Agreement, with
    several of our significant stockholders and affiliates,
    including Stephen T. Winn and entities affiliated with
    Mr. Winn, Timothy J. Barker, the Apax Funds, individuals
    affiliated with the Apax Funds, the Camden Funds, individuals
    affiliated with the Camden Funds, Advance Capital Partners, L.P.
    and affiliated entities, or the Advance Capital Funds, and
    individuals affiliated with the Advance Capital Funds, including
    one of our directors, Jeffrey T. Leeds. Pursuant to this
    agreement, we granted such stockholders certain registration
    rights with respect to shares of our common stock issuable upon
    conversion of the shares of preferred stock held by them, shares
    of our common stock issuable upon exercise of certain warrants
    held by them and shares of our common stock then held or
    thereafter acquired by such stockholders. For more information
    regarding the Registration Rights Agreement, see
    "Description of Capital Stock — Registration
    Rights."
2010
    Shareholders Agreement
In March 2010, we entered into a Fourth Amended and Restated
    Shareholders Agreement, or 2010 Shareholders Agreement, with
    several of our significant stockholders including Stephen T.
    Winn, individuals and entities affiliated with Mr. Winn,
    Timothy J. Barker, the Apax Funds, individuals affiliated with
    the Apax Funds, the Camden Funds, individuals affiliated with
    the Camden Funds, the Advance Capital Funds and individuals
    affiliated with the Advance Capital Funds, including one of our
    directors, Jeffrey T. Leeds. The 2010 Shareholders Agreement,
    among other things:
•
provides for the voting of shares with respect to the
    constituency of our board of directors and our compensation
    committee and audit committee;
•
provides for the redemption, on certain terms and conditions, of
    all or any portion of the Series A Convertible Preferred
    Stock held by Advance Capital and its affiliates;
•
grants our preferred stockholders certain rights of first
    refusal and co-sale with respect to proposed transfers of our
    securities by certain stockholders;
•
grants our preferred stockholders a right of first offer with
    respect to sales of our shares by us, subject to specified
    exclusions (which exclusions are expected to include the sale of
    the shares pursuant to this prospectus); and
•
obligates us to deliver periodic financial statements to our
    major investors.
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We anticipate that the 2010 Shareholders Agreement will
    terminate upon completion of this offering. This is not a
    complete description of the 2010 Shareholders Agreement and is
    qualified by the full text of the 2010 Shareholders Agreement
    filed as an exhibit to the registration statement of which this
    prospectus is a part.
Stock
    Options
Certain stock option and restricted stock grants to our
    non-employee directors who are not affiliated with our major
    stockholders are described in "Management —
    Director Compensation."
Certain stock option grants to our named executive officers are
    described in "Executive Compensation — Grants of
    Plan-Based Awards," "Executive
    Compensation — Outstanding Equity Awards at
    December 31, 2009" and "Executive
    Compensation — Employment Agreements."
In addition to those option grants, on February 29, 2008,
    we granted an option to purchase 300,000 shares of our
    common stock to Jason D. Lindwall at an exercise price of $3.50.
    The shares subject to the stock option vest in equal quarterly
    installments over 16 consecutive quarters commencing on the
    first day of the calendar quarter immediately following the
    grant date, subject to continued service through each applicable
    date.
On February 26, 2009, we granted an option to purchase
    100,000 shares of our common stock to Jason D. Lindwall at
    an exercise price of $3.00. The shares subject to the stock
    option vest in equal quarterly installments over 16 consecutive
    quarters commencing on the first day of the calendar quarter
    immediately following the grant date, subject to continued
    service through each applicable date.
On February 25, 2010, we granted options to purchase
    350,000, 225,000, 50,000 and 300,000 shares of our common
    stock to Timothy J. Barker, Ashley Chaffin Glover, Jason D.
    Lindwall and Dirk D. Wakeham, respectively, at an exercise price
    of $3.75. Such stock options vest with respect to 5% of the
    shares subject to the stock option each quarter commencing on
    the first day of the calendar quarter immediately following the
    grant date for 15 consecutive quarters and, with respect to the
    remaining 25% of the shares subject to the stock option, on the
    first day of the next following calendar quarter, subject to
    continued service through each applicable date.
Employment
    Arrangements and Indemnification Agreements
We have entered into employment agreements with each of our
    executive officers that include, among other things,
    compensation terms, provisions regarding payments upon
    termination in certain circumstances and confidentiality and
    non-competition provisions as described under "Executive
    Compensation — Employment Agreements."
Prior to the completion of this offering, we expect to enter
    into indemnification agreements with each of our directors and
    officers. The indemnification agreements and the indemnification
    provisions we expect will be included in our amended and
    restated certificate of incorporation and amended and restated
    bylaws, to be effective upon the completion of this offering,
    will require us to indemnify our directors and officers to the
    fullest extent permitted by Delaware law. For further
    information, see "Executive Compensation —
    Limitations on Liability and Indemnification Matters."
Other
    Transactions with our Significant Stockholders
On December 31, 2008, we declared and paid all dividends
    then accrued and unpaid on outstanding shares of our convertible
    preferred stock. We issued an aggregate of
    16,294,894 shares of our common stock and promissory notes
    in an aggregate principal amount of $11,064,391.53 to our
    holders of convertible preferred stock in payment of this
    dividend, including 7,718,396 shares of our common stock
    and promissory notes in an aggregate principal amount of
    $4,631,043.20 to Stephen T. Winn and entities affiliated with
    Mr. Winn, 21,325 shares of our common stock and
    promissory notes in an aggregate principal amount of $33,482.44
    to Timothy J. Barker, 6,074,335 shares of our common stock
    and promissory notes in an aggregate principal amount of
    $4,345,977.78 to the Apax Funds, 1,708,406 shares of our
    common stock and promissory notes in an aggregate principal
    amount of $1,025,047.60 to the Advance Capital Funds,
    26,195 shares of our common stock and promissory notes in
    an aggregate principal amount of $15,718.77 to Jeffrey T. Leeds,
    one
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of our directors, and 694,164 shares of our common stock
    and promissory notes in an aggregate principal amount of
    $969,070.74 to the Camden Funds. We expect to repay all amounts
    outstanding under the promissory notes issued in this dividend
    upon completion of this offering. See "Use of
    Proceeds."
On December 31, 2009, we declared and paid all dividends
    then accrued and unpaid on outstanding shares of our convertible
    preferred stock. We issued an aggregate of 2,837,345 shares
    of our common stock and cash in an aggregate amount of
    $2,515,832 to our holders of convertible preferred stock in
    payment of this dividend, including 1,308,705 shares of our
    common stock and cash in an aggregate amount of $785,225.56 to
    Stephen T. Winn and entities affiliated with Mr. Winn,
    6,440 shares of our common stock and cash in an aggregate
    amount of $13,620.12 to Timothy J. Barker, 1,030,735 shares
    of our common stock and cash in an aggregate amount of
    $1,142,187.95 to the Apax Funds, 289,894 shares of our
    common stock and cash in an aggregate amount of $173,937.49 to
    the Advance Capital Funds, 4,445 shares of our common stock
    and cash in an aggregate amount of $2,667.08 to Jeffrey T.
    Leeds, one of our directors, and 185,470 shares of our
    common stock and cash in an aggregate amount of $387,332.82 to
    the Camden Funds.
On April 23, 2010, we declared and paid all dividends
    accrued and unpaid on outstanding shares of our Series A
    Convertible Preferred Stock, Series A1 Convertible
    Preferred Stock and Series B Convertible Preferred Stock
    through and including March 31, 2010. We issued an
    aggregate of 685,276 shares of our common stock and
    promissory notes in an aggregate principal amount of $435,226.65
    to our holders of such series of convertible preferred stock in
    payment of this dividend, including 314,330 shares of our
    common stock and promissory notes in an aggregate principal
    amount of $188,600.07 to Stephen T. Winn and entities affiliated
    with Mr. Winn, 1,541 shares of our common stock and
    promissory notes in an aggregate principal amount of $1,849.50
    to Timothy J. Barker, 250,645 shares of our common stock
    and promissory notes in an aggregate principal amount of
    $150,389.28 to the Apax Funds, 70,494 shares of our common
    stock and promissory notes in an aggregate principal amount of
    $42,296.88 to the Advance Capital Funds, 1,080 shares of
    our capital stock and promissory notes in an aggregate principal
    amount of $649.46 to Jeffrey T. Leeds, one of our directors, and
    44,381 shares of our common stock and promissory notes in
    an aggregate principal amount of $48,825.77 to the Camden Funds.
    We expect to repay all amounts outstanding under the promissory
    notes issued in this dividend upon completion of this offering.
    See "Use of Proceeds."
In 2007, 2008 and 2009, we reimbursed Seren Capital, Ltd., a
    significant stockholder and an entity controlled by Stephen T.
    Winn, approximately $87,000, $34,000 and $44,000, respectively,
    for our use of an airplane owned by Seren Capital, Ltd.
We employ Chris Winn, a son of Stephen T. Winn. In 2009, we paid
    Chris Winn total cash compensation of approximately $133,000. On
    December 12, 2008, we granted Chris Winn an option to
    purchase 40,000 shares of our common stock at an exercise price
    per share of $3.00. On November 19, 2009, we granted
    Chris Winn an option to purchase 35,000 shares of our
    common stock at an exercise price per share of $3.00.
Policies
    and Procedures for Related Party Transactions
As provided by our audit committee charter to be effective upon
    completion of this offering, our audit committee is responsible
    for reviewing and approving in advance any related party
    transaction. Prior to the effectiveness of such audit committee
    charter, related party transactions were approved by our board
    of directors.
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PRINCIPAL
    AND SELLING STOCKHOLDERS
The following table sets forth information regarding beneficial
    ownership of our common stock as of April 1, 2010 and as
    adjusted to reflect the shares of common stock to be issued and
    sold in the offering by:
•
each person or group of affiliated persons known by us to be the
    beneficial owner of more than 5% of our common stock;
•
each of our named executive officers;
•
each of our directors;
•
all executive officers and directors as a group; and
•
each of our selling stockholders.
Beneficial ownership is determined in accordance with the rules
    of the SEC. The information does not necessarily indicate
    beneficial ownership for any other purpose. Under these rules,
    the number of shares of common stock deemed outstanding includes
    shares issuable upon exercise of options or warrants held by the
    respective person or group which may be exercised or converted
    within 60 days after April 1, 2010. For purposes of
    calculating each person's or group's percentage
    ownership, stock options and warrants exercisable within
    60 days after April 1, 2010 are included for that
    person or group but not the stock options or warrants of any
    other person or group.
Percentage of beneficial ownership is based on
    111,185,108 shares of common stock outstanding as of
    April 1, 2010
    and                   shares
    of common stock outstanding after completion of this offering.
Unless otherwise indicated and subject to applicable community
    property laws, to our knowledge, each stockholder named in the
    following table possesses sole voting and investment power over
    the shares listed, except for those jointly owned with that
    person's spouse. Unless otherwise noted below, the address
    of each person listed on the table is
c/o RealPage,
Inc., 4000 International Parkway, Carrollton, Texas 75007.
    Beneficial ownership representing less than 1% is denoted with
    an asterisk (*).
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Shares Beneficially
Number of
Owned After the
Shares
Offering if Over-
Shares Beneficially
Subject
Allotment Option
Shares Beneficially Owned
Number of
Owned After the
to Over-
is Exercised
Prior to the Offering
Shares
Offering
Allotment
in Full
Name of Beneficial Owner
Shares
Percentage
Offered
Shares
Percentage
Option
Shares
Percentage
5% Stockholders:
Entities affiliated with Advance Capital Partners,
    L.P.
(1)
7,623,300
6.9
%
Entities affiliated with Apax Excelsior VI,
    L.P.
(2)
29,327,292
26.4
Stephen T. Winn and entities affiliated with Stephen T.
    Winn
(3)
59,996,783
54.0
Named Executive Officers and Directors:
Stephen T.
    Winn
(3)
59,996,783
54.0
Timothy J.
    Barker
(4)
945,265
*
Dirk D.
    Wakeham
(5)
349,375
*
Ashley Chaffin
    Glover
(6)
398,750
*
William E. Van
    Valkenberg
(7)
45,000
*
Alfred R.
    Berkeley, III
(8)
298,333
*
Richard M.
    Berkeley
(9)
5,487,412
4.9
Peter
    Gyenes
(10)
19,333
*
Jeffrey T.
    Leeds
(11)
7,740,190
7.0
Jason A.
    Wright
(2)
29,327,292
26.4
All executive officers and directors as a group
    (11 people)
(12)
104,695,233
92.9
Other Selling Stockholders:
Entities affiliated with Camden Partners Strategic Fund III,
    L.P.
(13)
5,257,412
4.7
(1)
Represents 1,820,015 shares held by Advance Capital
    Offshore Partners, L.P. and 5,803,285 shares held by
    Advance Capital Partners, L.P. Advance Capital Management, LLC,
    or Advance Capital Management, is the general partner of Advance
    Capital Associates, L.P., or Advance Capital Associates, which
    is the general partner of Advance Capital Partners, L.P. and
    Advance Capital Offshore Associates, LDC, which is the general
    partner of Advance Capital Offshore Partners, L.P. Because
    Jeffrey T. Leeds and Robert A. Bernstein are the members of
    Advance Capital Management, which is the general partner of
    Advance Capital Associates, which is the general partner of
    Advance Capital Partners, L.P. and Advance Capital Offshore
    Associates, LDC, which is the general partner of Advance Capital
    Offshore Partners, L.P., Messrs. Leeds and Bernstein may be
    deemed to have sole voting and dispositive power of the shares
    held by Advance Capital Offshore Partners, L.P. and Advance
    Capital Partners, L.P., or the Advance Capital Funds. The
    address of the Advance Capital Funds and their affiliated
    entities and individuals is 350 Park Avenue, 23rd Floor,
    New York, New York 10022. For a discussion of our material
    relationships with the Advance Capital Funds and affiliated
    entities, see "Certain Relationships and Related Party
    Transactions."
(2)
Represents 25,060,173 shares held by Apax Excelsior VI,
    L.P., 2,047,044 shares held by Apax Excelsior VI-A C.V.,
    1,363,718 shares held by Apax Excelsior VI-B C.V. and
    856,357 shares held by Patricof Private Investment Club
    III, L.P. Apax Managers, Inc., or Apax Managers, is the general
    partner of Apax Excelsior VI Partners, L.P., or Apax Excelsior
    VI Partners, which is the general partner of each of Apax
    Excelsior VI, L.P., Apax Excelsior VI-A C.V., Apax Excelsior
    VI-B C.V. and Patricof Private Investment Club III, or the Apax
    Funds. Each of the directors of Apax Managers, Inc. may be
    deemed to share voting and dispositive power over the shares
    held by the Apax Funds. The address of the Apax Funds and their
    affiliated entities and individuals is 601 Lexington
    Avenue, New York, New York 10022. For a
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discussion of our material relationships with the Apax Funds and
    affiliated entities, see "Certain Relationships and Related
    Party Transactions."
(3)
Represents 44,784,925 shares held by Seren Capital, Ltd.,
    250,000 shares held by Seren Catalyst, L.P.,
    1,231,250 shares held by Stephen T. Winn 1996 Family LPA,
    and 13,730,608 shares held by Stephen T. Winn. Stephen T.
    Winn is the sole manager and president of Seren Capital
    Management, L.L.C., which is the general partner of Seren
    Capital, Ltd. and Seren Catalyst, L.P., or the Seren
    Partnerships and, by virtue of this relationship, has sole
    voting and dispositive power over the shares held by the Seren
    Partnerships. Mr. Winn is the general partner of the
    Stephen T. Winn 1996 Family LPA and has voting and dispositive
    power over the shares held by the Stephen T. Winn 1996 Family
    LPA. For a discussion of our material relationships with
    Mr. Winn and his affiliated entities, see "Certain
    Relationships and Related Party Transactions."
(4)
Represents 427,765 shares held by Timothy J. Barker and
    517,500 shares issuable upon the exercise of options to
    purchase shares of our common stock held by Mr. Barker that
    are fully vested and exercisable within 60 days of
    April 1, 2010. For a discussion of our material
    relationships with Mr. Barker, see "Certain
    Relationships and Related Party Transactions."
(5)
Represents 349,375 shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Mr. Wakeham that are fully vested and exercisable within
    60 days of April 1, 2010.
(6)
Represents 398,750 shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Ms. Chaffin Glover that are fully vested and exercisable
    within 60 days of April 1, 2010.
(7)
Represents 45,000 shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Mr. Van Valkenberg that are fully vested and exercisable
    within 60 days of April 1, 2010.
(8)
Represents 183,333 shares held by Alfred R.
    Berkeley, III, of which 32,292 are subject to a repurchase
    right held by us which lapses with respect to an additional
    1,041 shares on the last day of each calendar month
    provided that Mr. Berkeley remains a director on each such
    applicable date and 13,333 are subject to forfeiture to us,
    which forfeiture restriction lapses as to 666.65 shares on
    the first day of each calendar quarter beginning July 1,
    2010 and as to the remaining 3,333.25 shares on
    April 1, 2014, provided that Mr. Berkeley remains a
    director on each such applicable date, and 115,000 held by
    Muriel Van Dusen Berkeley and Richard M. Berkeley, as Trustees
    of the 2009 Berkeley Family Resource Trust dated 12/11/2009, or
    the Berkeley Family Trust. Muriel Van Dusen Berkeley and Richard
    M. Berkeley are the trustees of the Berkeley Family Trust and
    share voting and dispositive power over the shares held by the
    Berkeley Family Trust. By virtue of his relationship with his
    spouse, Muriel Van Dusen Berkeley, Alfred R. Berkeley may be
    deemed to share voting and dispositive power over the shares
    held by the Berkeley Family Trust. Mr. Berkeley is an
    affiliate of a broker-dealer, purchased the securities in the
    ordinary course of business and, at the time of the purchase of
    the securities to be resold, had no agreements or
    understandings, directly or indirectly, with any person to
    distribute the securities.
(9)
Represents 5,047,562 shares held by Camden Partners
    Strategic Fund III, L.P., 209,850 shares held by
    Camden Partners Strategic
Fund III-A,
L.P., 115,000 held by Muriel Van Dusen Berkeley and Richard M.
    Berkeley, as Trustees of the 2009 Berkeley Family Resource Trust
    dated
12/11/2009
and 115,000 held by Richard M. Berkeley, as Trustee of the
    Alfred and Muriel Berkeley Survivorship Trust dated
12/1/2005.
Camden Partners Strategic Manager, LLC, or Camden Partners
    Strategic Manager, is the managing member of Camden Partners
    Strategic III, LLC, or Camden Partners Strategic III, which is
    the general partner of each of Camden Partners Strategic
    Fund III, L.P. and Camden Partners Strategic Fund III-A,
    L.P., or the Camden Funds. Because Richard M. Berkeley is the
    managing member of Camden Partners Strategic Manager, Camden
    Partners Strategic Manager is the managing member of Camden
    Partners Strategic III and Camden Partners
    Strategic III is the general partner of each of the Camden
    Funds, Mr. Berkeley may be deemed to have voting and
    dispositive power over the shares held by the Camden Funds.
    Mr. Berkeley and Muriel Van Dusen Berkeley are the trustees
    of the 2009 Berkeley Family Resource Trust dated
12/11/2009,
or the Berkeley Family Trust, and share voting and dispositive
    power over the shares held by the Berkeley Family Trust.
    Mr. Berkeley is the trustee of the Alfred and Muriel
    Berkeley Survivorship Trust dated
12/1/2005,
or the Berkeley Survivorship Trust, and has voting and
    dispositive power over the shares held by the Berkeley
    Survivorship Trust. Mr. Berkeley disclaims beneficial
    ownership of shares
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held by the Berkeley Family Trust and the Berkeley Survivorship
    Trust, except to the extent of any pecuniary interest therein.
    Mr. Berkeley is an affiliate of a broker-dealer, purchased
    the securities in the ordinary course of business and, at the
    time of the purchase of the securities to be resold, had no
    agreements or understandings, directly or indirectly, with any
    person to distribute the securities. The address of the Camden
    Funds and their affiliated entities and individuals is
    500 E. Pratt Street, Suite 1200, Baltimore,
    Maryland 21202. For a discussion of our material relationships
    with Camden Partners and its affiliated entities, see
    "Certain Relationships and Related Party
    Transactions." The Camden Funds are not affiliated with
    Camden Property Trust.
(10)
Represents 6,000 shares issuable upon the exercise of
    options to purchase shares of our common stock held by
    Mr. Gyenes that are fully vested and exercisable within
    60 days of April 1, 2010 and 13,333 restricted shares
    of our common stock that are subject to forfeiture to us, which
    forfeiture restriction lapses as to 666.65 shares on the
    first day of each calendar quarter beginning July 1, 2010
    and as to the remaining 3,333.25 shares on April 1,
    2014, provided that Mr. Gyenes remains a director on each
    such applicable date.
(11)
Represents 116,890 shares held by Jeffrey T. Leeds,
    1,820,015 shares held by Advance Capital Offshore Partners,
    L.P. and 5,803,285 shares held by Advance Capital Partners,
    L.P. Because Mr. Leeds is a member of Advance Capital
    Management, LLC, which is the general partner of Advance Capital
    Associates, L.P., which is the general partner of Advance
    Capital Partners, L.P. and Advance Capital Offshore Associates,
    LDC, which is the general partner of Advance Capital Offshore
    Partners, L.P., Mr. Leeds may be deemed to have voting and
    dispositive power of the shares held by Advance Capital Offshore
    Partners, L.P. and Advance Capital Partners, L.P. For a
    discussion of our material relationships with Mr. Leeds,
    see "Certain Relationships and Related Party
    Transactions."
(12)
Consists of 14,471,929 shares held of record by our
    directors and executive officers, of which 32,292 shares
    are subject to a repurchase right held by us that lapses with
    respect to an additional 1,041 shares on the last day of
    each calendar month provided that Mr. A. Berkeley remains
    one of our directors on each such applicable date, 26,666 are
    subject to forfeiture to us, which forfeiture restriction lapses
    as to 666.65 shares on the first day of each calendar quarter
    beginning July 1, 2010 and 3,333.25 shares on
    April 1, 2014, provided that Mr. A. Berkeley
    remains one of our directors on each such applicable date, and
    as to 666.65 shares on the first day of each calendar
    quarter beginning July 1, 2010 and 3,333.25 shares on
    April 1, 2014, provided that Mr. Gyenes remains one of
    our directors on each such applicable date,
    1,519,125 shares issuable upon the exercise of options held
    by our directors and executive officers that are fully vested
    and exercisable within 60 days of April 1, 2010 and
    88,704,179 shares held by entities over which our directors
    and executive officers may be deemed to have voting or
    dispositive power.
(13)
Represents 5,047,562 shares held by Camden Partners
    Strategic Fund III, L.P. and 209,850 shares held by
    Camden Partners Strategic
Fund III-A,
L.P. Camden Partners Strategic Manager, LLC, or Camden Partners
    Strategic Manager, is the managing member of Camden Partners
    Strategic III, LLC, or Camden Partners Strategic III, which is
    the general partner of Camden Partners Strategic Fund III,
    L.P. and Camden Partners Strategic
Fund III-A,
L.P., or the Camden Funds. Because Richard M. Berkeley, Don
    Hughes, Dick Johnston and David Warnock are the managing members
    of Camden Partners Strategic Manager, Camden Partners Strategic
    Manager is managing member of Camden Partners Strategic III
    and Camden Partners Strategic III is the general partner of
    the Camden Funds, Messrs. Berkeley, Hughes, Johnston and
    Warnock may be deemed to have voting and dispositive power over
    the shares held by the Camden Funds. The address of the Camden
    Funds and their affiliated entities and individuals is
    500 E. Pratt Street, Suite 1200, Baltimore,
    Maryland 21202. For a discussion of our material relationships
    with the Camden Funds and affiliated entities, see "Certain
    Relationships and Related Party Transactions." The Camden
    Funds are not affiliated with Camden Property Trust.
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DESCRIPTION
    OF CAPITAL STOCK
General
The following is a summary of the rights of our common stock and
    preferred stock and certain provisions of our amended and
    restated certificate of incorporation and amended and restated
    bylaws, as we expect they will be in effect upon the completion
    of this offering. For more detailed information, please see our
    amended and restated certificate of incorporation and amended
    and restated bylaws, to be effective upon completion of this
    offering, which will be filed as exhibits to the registration
    statement of which this prospectus is a part.
Immediately following the completion of this offering, our
    authorized capital stock will consist
    of                 shares,
    with a par value of $0.001 per share, of which:
•
shares
    are designated as common stock; and
•
shares
    are designated as preferred stock.
At December 31, 2009, assuming the conversion of all
    outstanding shares of our convertible preferred stock into
    common stock, we had outstanding 111,009,108 shares of
    common stock, held of record by 92 stockholders. In
    addition, as of December 31, 2009, we had outstanding
    options to acquire 15,857,456 shares of common stock and an
    outstanding warrant to purchase 25,000 shares of common
    stock at $1.00 per share.
Common
    Stock
The holders of our common stock are entitled to one vote per
    share on all matters to be voted on by the stockholders. Subject
    to preferences that may be applicable to any outstanding shares
    of preferred stock, holders of common stock are entitled to
    receive ratably such dividends as may be declared by our board
    of directors out of funds legally available therefor. In the
    event we liquidate, dissolve or wind up, holders of common stock
    are entitled to share ratably in all assets remaining after
    payment of liabilities and the liquidation preferences of any
    outstanding shares of preferred stock. Holders of common stock
    have no preemptive, conversion or subscription rights. There are
    no redemption or sinking fund provisions applicable to the
    common stock. All outstanding shares of common stock are, and
    all shares of common stock to be outstanding upon completion of
    this offering will be, fully paid and nonassessable.
Preferred
    Stock
Our board of directors has the authority, without further action
    by the stockholders, to issue from time to time the preferred
    stock in one or more series, to fix the number of shares of any
    such series and the designation thereof and to fix the rights,
    preferences, privileges and restrictions granted to or imposed
    upon such preferred stock, including dividend rights, dividend
    rate, conversion rights, voting rights, rights and terms of
    redemption, redemption prices, liquidation preference and
    sinking fund terms, any or all of which may be greater than or
    senior to the rights of the common stock. The issuance of
    preferred stock could adversely affect the voting power of
    holders of common stock and reduce the likelihood that such
    holders will receive dividend payments and payments upon
    liquidation. Such issuance could have the effect of decreasing
    the market price of our common stock. The issuance of preferred
    stock or even the ability to issue preferred stock could have
    the effect of delaying, deterring or preventing a change in
    control. We have no present plans to issue any shares of
    preferred stock.
Warrants
At December 31, 2009, we had a warrant outstanding to
    purchase 25,000 shares of our common stock at an exercise
    price per share of $1.00. The warrant was net exercised for
    17,581 shares on March 18, 2010.
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Registration
    Rights
Second
    Amended and Restated Registration Rights Agreement
We have entered into a Second Amended and Restated Registration
    Rights Agreement dated February 22, 2008, or the
    Registration Rights Agreement, with certain of our stockholders.
    Subject to the terms of this agreement, the holders of an
    aggregate
    of          shares
    of our common stock, or their permitted transferees, are
    entitled to rights with respect to the registration of these
    shares under the Securities Act. These rights include demand
    registration rights, short-form registration rights and
    piggyback registration rights.
The following description of the terms of the Registration
    Rights Agreement is intended as a summary only and is qualified
    in its entirety by reference to the Registration Rights
    Agreement filed as an exhibit to the registration statement of
    which this prospectus is a part.
Demand registration rights.
Under the terms of
    the Registration Rights Agreement, the holders of a majority of
    our then outstanding Series A Convertible Preferred Stock
    and the holders of a majority of our then outstanding
    Series A1 Convertible Preferred Stock each may make a
    written request to us for the registration of the offer and sale
    of all or part of the shares having registration rights, or
    registrable securities, under the Securities Act if the amount
    of registrable securities to be registered has an aggregate
    market value, based upon the offering price to the public, equal
    to at least $10 million. We will be required, upon such
    written request, to deliver notice of such registration request
    to the other holders of registrable securities within ten days
    after our receipt of the request and to use our best efforts to
    effect the requested registration within 90 days after we
    have given written notice. We are required to effect only two
    registrations pursuant to this provision of the registration
    agreement at the request of holders of a majority of the
    Series A Convertible Preferred Stock and one registration
    pursuant to this provision of the registration statement at the
    request of holders of a majority of the Series A1
    Convertible Preferred Stock. We are not required to effect a
    demand registration prior to six months after the completion of
    this offering.
Short-form registration rights.
If we are
    eligible to file a registration statement on
Form S-3
or any successor form with similar "short-form"
    disclosure requirements, the holders of registrable securities
    under the Registration Rights Agreement have unlimited rights to
    request registration of their shares on
Form S-3
provided that the registrable securities to be registered have
    an aggregate market value, based upon the offering price to the
    public, equal to at least $2.5 million. We are not required
    to effect more than two short form registrations in any
12-month
period.
Piggyback registration rights.
If we register
    any of our securities either for our own account or for the
    account of other security holders, the holders of the
    registrable securities under the Registration Rights Agreement
    are entitled to include their registrable securities in the
    registration subject to certain exceptions relating to employee
    benefit plans and mergers and acquisitions. The managing
    underwriters of any underwritten offering may limit the number
    of registrable securities included in the underwritten offering
    if the underwriters believe that including these shares would
    materially or adversely affect the offering subject to certain
    limitations.
Expenses.
All fees, costs and expenses of
    registrations pursuant to the Registration Rights Agreement will
    be borne by us except for the underwriting fees, discounts or
    commissions attributable to the sale of the registrable
    securities, which shall be borne by the holders selling such
    registrable securities in the registration.
1998 Shareholders
    Agreement
We have also entered into a Shareholders Agreement with certain
    of our stockholders dated December 1, 1998, as amended, or
    the 1998 Shareholders Agreement, pursuant to which the holders
    of an aggregate
    of          shares
    of our common stock, or their permitted transferees, are
    entitled to piggyback registration rights for registrations
    occurring after a public market for shares of our common stock
    has been established. Under the terms of the
    1998 Shareholders Agreement, a public market for shares of
    our common stock has been established when at least 15% of our
    common stock has been sold pursuant to one or more effective
    registration statements under the Securities Act and our common
    stock is publicly traded in the over-the-counter market or is
    listed on a national securities exchange.
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The following description of the registration rights provisions
    included in the 1998 Shareholders Agreement is intended as
    a summary only and is qualified in its entirety by reference to
    the 1998 Shareholders Agreement filed as an exhibit to the
    registration statement of which this prospectus is a part.
Piggyback registration rights.
Under the terms
    of the 1998 Shareholders Agreement, if we register shares
    of our common stock for sale to the public after the
    establishment of a public market for the shares, the holders of
    shares having registration rights under the 1998 Shareholders
    Agreement, or registrable shares, are entitled to include their
    registrable shares in the registration subject to certain
    exceptions relating to employee benefit plans and mergers and
    acquisitions. The managing underwriters of any underwritten
    offering may limit the number of registrable shares included in
    the underwritten offering if the underwriters believe that
    including these shares would materially or adversely affect the
    offering subject to certain limitations.
Expenses.
All fees, costs and expenses of
    piggyback registrations pursuant to the 1998 Shareholders
    Agreement will be borne by us except for the fees of counsel to
    the selling holders and underwriting fees, discounts or
    commissions attributable to the sale of the registrable shares,
    which will be borne by the selling holders.
Rights of
    First Offer,
Co-Sale
and
    Appraisal
Pursuant to the 1998 Shareholders Agreement, Seren Capital,
    Ltd., an entity affiliated with Stephen T. Winn, is entitled to
    a right of first offer with respect
    to          
    shares of our common stock and holders of an aggregate
    of          
    shares of our common stock, or their permitted transferees, are
    entitled to co-sale and appraisal rights with respect to their
    shares in certain circumstances. These rights terminate if a
    public market for shares of our common stock has been
    established. Under the terms of our 1998 Shareholders
    Agreement, a public market for shares of our common stock has
    been established when at least 15% of our common stock then
    outstanding has been sold pursuant to one or more effective
    registration statements under the Securities Act and our common
    stock is publicly traded in the over-the-counter market or is
    listed on a national securities exchange.
The following description of the rights of first offer, co-sale
    and appraisal included in the 1998 Shareholders Agreement
    is intended as a summary only and is qualified in its entirety
    by reference to the 1998 Shareholders Agreement filed as an
    exhibit to the registration statement to which this prospectus
    is part.
If a party to the 1998 Shareholders Agreement desires to
    transfer shares of our common stock to a third party, such
    stockholder is required first to give notice to Seren Capital,
    Ltd. and to offer to sell to Seren Capital, Ltd. the shares of
    common stock such stockholder proposes to transfer. Seren
    Capital, Ltd. is controlled by Stephen T. Winn.
Under the terms of the 1998 Shareholders Agreement, if
    Stephen T. Winn or entities or individuals affiliated with him
    propose to sell any of their shares of common stock, they must
    first offer to the other stockholders who are party to the
    1998 Shareholders Agreement an opportunity to sell their
    respective pro rata share of the shares proposed to be sold in
    such proposed sale.
In addition, if Stephen T. Winn or entities or individuals
    affiliated with him, together with any other party or parties to
    the 1998 Shareholders Agreement collectively owning over
    50% of our outstanding common stock determine to sell their
    common stock to a third party, whether by sale, merger or
    consolidation, or to cause us to sell all or substantially all
    of our assets to a third party, such stockholders may, at their
    option, require the other stockholders who are parties to the
    1998 Shareholders Agreement to vote their shares in favor
    of such transaction and sell their shares in such transaction.
    If any stockholder who is a party to the 1998 Shareholders
    Agreement is required to sell their shares in connection with a
    sale of our company and disagrees with the terms of such sale,
    that stockholder may obtain an appraisal of his or her common
    stock and, depending on the result of the appraisal, may cause
    us to pay that stockholder the appraised price of his or her
    common stock and the costs of the appraisal.
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Anti-Takeover
    Effects of Delaware Law and Our Certificate of Incorporation and
    Bylaws
Certain provisions of Delaware law and our amended and restated
    certificate of incorporation and our amended and restated
    bylaws, as we expect they will be in effect upon the completion
    of this offering, contain provisions that could have the effect
    of delaying, deferring or discouraging another party from
    acquiring control of us. These provisions, which are summarized
    below, may have the effect of discouraging coercive takeover
    practices and inadequate takeover bids. These provisions are
    also designed, in part, to encourage persons seeking to acquire
    control of us to first negotiate with our board of directors. We
    believe that the benefits of increased protection of our
    potential ability to negotiate with an unfriendly or unsolicited
    acquirer outweigh the disadvantages of discouraging a proposal
    to acquire us because negotiation of these proposals could
    result in an improvement of their terms.
Undesignated preferred stock.
As discussed
    above, our board of directors has the ability to issue preferred
    stock with voting or other rights or preferences that could
    impede the success of any attempt to change control of us. These
    and other provisions may have the effect of deferring hostile
    takeovers or delaying changes in control or management of our
    company.
Limits on ability of stockholders to act by written consent
    or call a special meeting
. We expect to provide in our
    amended and restated certificate of incorporation that our
    stockholders may not act by written consent. This limit on the
    ability of our stockholders to act by written consent may
    lengthen the amount of time required to take stockholder
    actions. As a result, a holder controlling a majority of our
    capital stock would not be able to amend our bylaws or remove
    directors without holding a meeting of our stockholders called
    in accordance with our amended and restated bylaws.
In addition, we expect our amended and restated bylaws will
    provide that special meetings of the stockholders may be called
    only by the chairperson of our board of directors, our Chief
    Executive Officer, our president (in the absence of our Chief
    Executive Officer) or our board of directors. We expect our
    amended and restated bylaws will prohibit a stockholder from
    calling a special meeting, which may delay the ability of our
    stockholders to force consideration of a proposal or for holders
    controlling a majority of our capital stock to take any action,
    including the removal of directors.
Requirements for advance notification of stockholder
    nominations and proposals
. We expect our amended and
    restated bylaws will establish advance notice procedures with
    respect to stockholder proposals and the nomination of
    candidates for election as directors, other than nominations
    made by or at the direction of our board of directors or a
    committee of our board of directors. However, we expect that our
    amended and restated bylaws may have the effect of precluding
    the conduct of certain business at a meeting if the proper
    procedures are not followed. We expect that these provisions may
    also discourage or deter a potential acquirer from conducting a
    solicitation of proxies to elect the acquirer's own slate
    of directors or otherwise attempting to obtain control of our
    company.
Board vacancies filled only by majority of directors then in
    office.
Vacancies and newly created seats on our
    board of directors may be filled only by our board of directors.
    Only our board of directors may determine the number of
    directors on our board of directors. The inability of
    stockholders to determine the number of directors or to fill
    vacancies or newly created seats on our board of directors makes
    it more difficult to change the composition of our board of
    directors, but these provisions promote a continuity of existing
    management.
No cumulative voting.
The Delaware General
    Corporation Law provides that stockholders are not entitled to
    the right to cumulate votes in the election of directors unless
    our certificate of incorporation provides otherwise. Our amended
    and restated certificate of incorporation and amended and
    restated bylaws do not expressly provide for cumulative voting.
Directors removed only for cause.
We expect
    that our amended and restated certificate of incorporation will
    provide that directors may be removed by stockholders only for
    cause.
Delaware anti-takeover statute.
We are subject
    to the provisions of Section 203 of the Delaware General
    Corporation Law regulating corporate takeovers. In general,
    Section 203 prohibits a publicly held Delaware corporation
    from engaging, under certain circumstances, in a business
    combination with an interested
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stockholder for a period of three years following the date on
    which the person became an interested stockholder unless:
•
Prior to the date of the transaction, the board of directors of
    the corporation approved either the business combination or the
    transaction which resulted in the stockholder becoming an
    interested stockholder;
•
Upon completion of the transaction that resulted in the
    stockholder becoming an interested stockholder, the interested
    stockholder owned at least 85% of the voting stock of the
    corporation outstanding at the time the transaction commenced,
    excluding for purposes of determining the voting stock
    outstanding, but not the outstanding voting stock owned by the
    interested stockholder, (1) shares owned by persons who are
    directors and also officers and (2) shares owned by
    employee stock plans in which employee participants do not have
    the right to determine confidentially whether shares held
    subject to the plan will be tendered in a tender or exchange
    offer; or
•
At or subsequent to the date of the transaction, the business
    combination is approved by the board of directors of the
    corporation and authorized at an annual or special meeting of
    stockholders, and not by written consent, by the affirmative
    vote of at least
    66
2
/
3
%
    of the outstanding voting stock that is not owned by the
    interested stockholder.
Generally, a business combination includes a merger, asset or
    stock sale, or other transaction resulting in a financial
    benefit to the interested stockholder. An interested stockholder
    is a person who, together with affiliates and associates, owns
    or, within three years prior to the determination of interested
    stockholder status, did own 15% or more of a corporation's
    outstanding voting stock. We expect the existence of this
    provision to have an anti-takeover effect with respect to
    transactions our board of directors does not approve in advance.
    We also anticipate that Section 203 may also
    discourage attempts that might result in a premium over the
    market price for the shares of common stock held by stockholders.
The provisions of Delaware law and our amended and restated
    certificate of incorporation and our amended and restated
    bylaws, as we expect they will be in effect upon the completion
    of this offering, could have the effect of discouraging others
    from attempting hostile takeovers and, as a consequence, they
    may also inhibit temporary fluctuations in the market price of
    our common stock that often result from actual or rumored
    hostile takeover attempts. These provisions may also have the
    effect of preventing changes in our management. It is possible
    that these provisions could make it more difficult to accomplish
    transactions that stockholders may otherwise deem to be in their
    best interests.
Transfer
    Agent and Registrar
Upon completion of this offering the transfer agent and
    registrar for our common stock will be Computershare Trust
    Company, N.A. The transfer agent's address is 250 Royall
    Street, Canton, Massachusetts 02021 and its telephone number is
    (800) 662-7237.
The
    NASDAQ Global Market Listing
We expect to apply to list the shares of our common stock on the
    NASDAQ Global Market under the symbol
    "    ."
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SHARES
    ELIGIBLE FOR FUTURE SALE
Prior to this offering, there has been no public market for
    shares of our common stock. Future sales of substantial amounts
    of shares of our common stock, including shares issued upon the
    exercise of outstanding options or warrants, in the public
    market after this offering, or the possibility of these sales
    occurring, could adversely affect the prevailing market price
    for our common stock from time to time or impair our ability to
    raise equity capital in the future.
Upon the completion of this offering, a total
    of          shares
    of common stock will be outstanding. Of these shares,
    all          shares
    of common stock sold in this offering by us, plus any shares
    sold upon exercise of the underwriters' over-allotment
    option, will be freely tradable in the public market without
    restriction or further registration under the Securities Act,
    unless these shares are held by "affiliates," as that
    term is defined in Rule 144 under the Securities Act.
The
    remaining          shares
    of common stock will be "restricted securities," as
    that term is defined in Rule 144 under the Securities Act.
    These restricted securities are eligible for public sale only if
    they are registered under the Securities Act or if they qualify
    for an exemption from registration under Rules 144 or 701
    under the Securities Act, which are summarized below.
Subject to the
lock-up
agreements described below and the provisions of Rules 144
    and 701 under the Securities Act, these restricted securities
    will be available for sale in the public market as follows:
Date
Number of Shares
On the date of this prospectus
Between 90 and 180 days (subject to extension) after the
    date of this prospectus
At various times beginning more than 180 days (subject to
    extension) after the date of this prospectus
In
    addition,            shares
    of common stock will be eligible for sale upon exercise of
    vested options 180 days following the effective date of
    this offering, subject to extension as described under
    "Underwriting."
Rule 144
In general, under Rule 144 as currently in effect, once we
    have been subject to public company reporting requirements for
    at least 90 days, a person who is not deemed to have been
    one of our affiliates for purposes of the Securities Act at any
    time during 90 days preceding a sale and who has
    beneficially owned the shares proposed to be sold for at least
    six months, including the holding period of any prior owner
    other than our affiliates, is entitled to sell such shares
    without complying with the manner of sale, volume limitation or
    notice provisions of Rule 144, subject to compliance with
    the public information requirements of Rule 144. If such a
    person has beneficially owned the shares proposed to be sold for
    at least one year, including the holding period of any prior
    owner other than our affiliates, then such person is entitled to
    sell such shares without complying with any of the requirements
    of Rule 144.
In general, under Rule 144 as currently in effect, once we
    have been subject to public company reporting requirements for
    90 days, an affiliate of ours who owns shares that were
    acquired from us or an affiliate of ours at least six months
    prior to the proposed sale is entitled to sell, upon the
    expiration of the
lock-up
agreements described below, within any three-month period
    beginning 90 days after the date of this prospectus, a
    number of shares that does not exceed the greater of:
•
1% of the number of shares of common stock then outstanding,
    which will equal
    approximately          shares
    immediately after the offering; or
•
the average weekly trading volume of the common stock during the
    four calendar weeks preceding the filing of a notice on
    Form 144 with respect to such sale.
Sales under Rule 144 by our affiliates or persons selling
    shares on behalf of our affiliates are also subject to certain
    manner of sale provisions and notice requirements and to the
    availability of current public information about us.
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Rule 701
Rule 701 generally allows a stockholder who purchased
    shares of our common stock pursuant to a written compensatory
    plan or contract in compliance with Rule 701 and who is not
    deemed to have been our affiliate during the immediately
    preceding 90 days to sell these shares in reliance upon
    Rule 144, but without being required to comply with the
    public information, holding period, volume limitation or notice
    provisions of Rule 144. Rule 701 permits our
    affiliates who purchase shares of our common stock pursuant to a
    written compensatory plan or contract in compliance with
    Rule 701 to sell these shares in reliance upon
    Rule 144 without complying with the holding period
    requirements of Rule 144. All holders of
    Rule 701 shares, however, are required to wait until
    90 days after the date of this prospectus before selling
    such shares pursuant to Rule 701.
Lock-Up
Agreements
We, all of our officers and directors and holders of
    substantially all of our outstanding stock and options have
    agreed that, without the prior written consent of Credit Suisse
    Securities (USA) LLC and Deutsche Bank Securities Inc., we and
    they will not, during the period ending 180 days after the
    date of this prospectus:
•
offer, sell, contract to sell, pledge or otherwise dispose of,
    directly or indirectly, any shares of our common stock or
    securities convertible into or exchangeable or exercisable for
    any shares of our common stock, enter into a transaction that
    would have the same effect, or
•
enter into any swap, hedge or other arrangement that transfers,
    in whole or in part, any of the economic consequences of
    ownership of our common stock,
whether any of these transactions are to be settled by delivery
    of our common stock or other securities, in cash or otherwise.
    This agreement is subject to certain exceptions, and is also
    subject to extension for up to an additional 34 days, as
    set forth under "Underwriting."
Registration
    Rights
Upon completion of this offering, the holders
    of          shares
    of common stock or their transferees will be entitled to various
    rights with respect to the registration of these shares under
    the Securities Act. Registration of these shares under the
    Securities Act would result in these shares becoming fully
    tradable without restriction under the Securities Act
    immediately upon the effectiveness of the registration, except
    for shares purchased by affiliates. See "Description of
    Capital Stock — Registration Rights" for
    additional information.
Registration
    Statements
We intend to file a registration statement on
Form S-8
under the Securities Act covering all of the shares of common
    stock subject to options outstanding or reserved for issuance
    under our stock plans. We expect to file this registration
    statement as soon as practicable after this offering. However,
    none of the shares registered on
Form S-8
will be eligible for resale until the expiration of the
lock-up
agreements to which they are subject.
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MATERIAL
    U.S. FEDERAL INCOME TAX AND ESTATE TAX
CONSEQUENCES TO
NON-U.S.
HOLDERS
The following is a summary of the material U.S. federal
    income tax and estate tax consequences of the ownership and
    disposition of our common stock to
non-U.S. holders,
but does not purport to be a complete analysis of all the
    potential tax considerations relating thereto. This summary is
    based upon the provisions of the Internal Revenue Code, Treasury
    regulations promulgated thereunder, administrative rulings and
    judicial decisions, all as of the date hereof. These authorities
    may be changed, possibly retroactively, so as to result in
    U.S. federal income or estate tax consequences different
    from those set forth below. We have not sought any ruling from
    the Internal Revenue Service, or the IRS, with respect to the
    statements made and the conclusions reached in the following
    summary, and there can be no assurance that the IRS will agree
    with such statements and conclusions.
This summary also does not address the tax considerations
    arising under the laws of any
non-U.S.,
state or local jurisdiction or under U.S. federal gift and
    estate tax laws, except to the limited extent below. In
    addition, this discussion does not address tax considerations
    applicable to an investor's particular circumstances or to
    investors that may be subject to special tax rules, including,
    without limitation:
•
banks, insurance companies or other financial institutions;
•
persons subject to the alternative minimum tax;
•
tax-exempt organizations;
•
controlled foreign corporations, passive foreign investment
    companies and corporations that accumulate earnings to avoid
    U.S. federal income tax;
•
dealers in securities or currencies;
•
traders in securities that elect to use a mark-to-market method
    of accounting for their securities holdings;
•
persons that own, or are deemed to own, more than five percent
    of our capital stock (except to the extent specifically set
    forth below);
•
certain former citizens or long-term residents of the United
    States;
•
persons who hold our common stock as a position in a hedging
    transaction, "straddle," "conversion
    transaction" or other risk reduction transaction;
•
persons who do not hold our common stock as a capital asset
    (within the meaning of Section 1221 of the Internal Revenue
    Code; and
•
persons deemed to sell our common stock under the constructive
    sale provisions of the Internal Revenue Code.
In addition, if a partnership or entity classified as a
    partnership for U.S. federal income tax purposes holds our
    common stock, the tax treatment of a partner generally will
    depend on the status of the partner and upon the activities of
    the partnership. Accordingly, partnerships that hold our common
    stock, and partners in such partnerships, should consult their
    tax advisors.
You are urged to consult your tax advisor with respect to the
    application of the U.S. federal income tax laws to your
    particular situation, as well as any tax consequences of the
    purchase, ownership and disposition of our common stock arising
    under the U.S. federal estate or gift tax rules or under the
    laws of any state, local,
non-U.S. or
other taxing jurisdiction or under any applicable tax treaty.
Non-U.S.
Holder Defined
For purposes of this discussion, you are a
non-U.S. holder
if you are any holder other than:
•
an individual citizen or resident of the United States;
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•
a corporation or other entity taxable as a corporation created
    or organized in the United States or under the laws of the
    United States or any political subdivision thereof;
•
an estate whose income is subject to U.S. federal income
    tax regardless of its source; or
•
a trust (x) whose administration is subject to the primary
    supervision of a U.S. court and which has one or more
    U.S. persons who have the authority to control all
    substantial decisions of the trust or (y) which has made an
    election to be treated as a U.S. person.
Distributions
We have not made any distributions on our common stock, and we
    do not plan to make any distributions for the foreseeable
    future. However, if we do make distributions on our common
    stock, those payments will constitute dividends for
    U.S. tax purposes to the extent paid from our current or
    accumulated earnings and profits, as determined under
    U.S. federal income tax principles. To the extent those
    distributions exceed both our current and our accumulated
    earnings and profits, they will constitute a return of capital
    and will first reduce your basis in our common stock, but not
    below zero, and then will be treated as gain from the sale of
    stock.
Any dividend paid to you generally will be subject to
    U.S. withholding tax either at a rate of 30% of the gross
    amount of the dividend or such lower rate as may be specified by
    an applicable income tax treaty. In order to receive a reduced
    treaty rate, you must provide us with an IRS
Form W-8BEN
or other appropriate version of IRS
Form W-8
certifying qualification for the reduced rate. A
non-U.S. holder
of shares of our common stock eligible for a reduced rate of
    U.S. withholding tax pursuant to an income tax treaty may
    obtain a refund of any excess amounts withheld by filing an
    appropriate claim for refund with the IRS. If the
non-U.S. holder
holds the stock through a financial institution or other agent
    acting on the
non-U.S. holder's
behalf, the
non-U.S. holder
will be required to provide appropriate documentation to the
    agent, which then will be required to provide certification to
    us or our paying agent, either directly or through other
    intermediaries.
Dividends received by you that are effectively connected with
    your conduct of a U.S. trade or business (and, if an income
    tax treaty applies, such dividend is attributable to a permanent
    establishment maintained by the
non-U.S. holder
in the United States) are exempt from such withholding tax. In
    order to obtain this exemption, you must provide us with an IRS
Form W-8ECI
or other applicable IRS
Form W-8
properly certifying such exemption. Such effectively connected
    dividends, although not subject to withholding tax, are taxed at
    the same graduated rates applicable to U.S. persons, net of
    certain deductions and credits, subject to an applicable income
    tax treaty providing otherwise. In addition, if you are a
    corporate
non-U.S. holder,
dividends you receive that are effectively connected with your
    conduct of a U.S. trade or business may also be subject to
    a branch profits tax at a rate of 30% or such lower rate as may
    be specified by an applicable income tax treaty.
Gain on
    Disposition of Common Stock
You generally will not be required to pay U.S. federal
    income tax on any gain realized upon the sale or other
    disposition of our common stock unless:
•
the gain is effectively connected with your conduct of a
    U.S. trade or business (and, if an income tax treaty
    applies, the gain is attributable to a permanent establishment
    maintained by you in the United States);
•
you are an individual who is present in the United States for a
    period or periods aggregating 183 days or more during the
    calendar year in which the sale or disposition occurs and
    certain other conditions are met; or
•
our common stock constitutes a U.S. real property interest
    by reason of our status as a U.S. real property holding
    corporation, or a USRPHC, for U.S. federal income tax
    purposes at any time within
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the shorter of the five-year period preceding the disposition or
    your holding period for our common stock.
We believe that we are not currently and will not become a
    USRPHC. However, because the determination of whether we are a
    USRPHC depends on the fair market value of our U.S. real
    property relative to the fair market value of our other business
    assets, there can be no assurance that we will not become a
    USRPHC in the future. Even if we become a USRPHC, however, as
    long as our common stock is regularly traded on an established
    securities market, such common stock will be treated as
    U.S. real property interests only if you actually or
    constructively hold more than five percent of such regularly
    traded common stock at any time during the applicable period
    that is specified in the Internal Revenue Code.
If you are a
non-U.S. holder
described in the first bullet above, you will be required to pay
    tax on the net gain derived from the sale under regular
    graduated U.S. federal income tax rates, and corporate
non-U.S. holders
described in the first bullet above may be subject to the branch
    profits tax at a 30% rate or such lower rate as may be specified
    by an applicable income tax treaty. If you are an individual
non-U.S. holder
described in the second bullet above, you will be required to
    pay a flat 30% tax on the gain derived from the sale, which tax
    may be offset by U.S. source capital losses (even though
    you are not considered a resident of the United States). You
    should consult any applicable income tax or other treaties that
    may provide for different rules.
Federal
    Estate Tax
Our common stock beneficially owned by an individual who is not
    a citizen or resident of the United States (as defined for U.S.
    federal estate tax purposes) at the time of death will generally
    be includable in the decedent's gross estate for U.S.
    federal estate tax purposes, unless an applicable estate tax
    treaty provides otherwise.
Backup
    Withholding and Information Reporting
Generally, we must report annually to the IRS the amount of
    dividends paid to you, your name and address, and the amount of
    tax withheld, if any. A similar report is sent to you. Pursuant
    to applicable income tax treaties or other agreements, the IRS
    may make these reports available to tax authorities in your
    country of residence.
Payments of dividends or of proceeds on the disposition of stock
    made to you may be subject to information reporting and backup
    withholding at a current rate of 28% unless you establish an
    exemption, for example by properly certifying your
non-U.S. status
on a
Form W-8BEN
or another appropriate version of IRS
Form W-8.
Notwithstanding the foregoing, backup withholding and
    information reporting may apply if either we or our paying agent
    has actual knowledge, or reason to know, that you are a
    U.S. person.
Backup withholding is not an additional tax; rather, the
    U.S. income tax liability of persons subject to backup
    withholding will be reduced by the amount of tax withheld. If
    withholding results in an overpayment of taxes, a refund or
    credit may generally be obtained from the IRS, provided that the
    required information is furnished to the IRS in a timely manner.
Recently
    Enacted Legislation Affecting Taxation of Our Common Stock Held
    By or Through Foreign Entities
Recently enacted legislation generally will impose a
    U.S. federal withholding tax of 30% on dividends and the
    gross proceeds of a disposition of our common stock paid after
    December 31, 2012 to a foreign financial institution unless
    such institution enters into an agreement with the
    U.S. government to withhold on certain payments and to
    collect and provide to the U.S. tax authorities substantial
    information regarding U.S. account holders of such
    institution (which includes certain equity and debt holders of
    such institution, as well as certain account holders that are
    foreign entities with U.S. owners). The legislation also
    will generally impose a U.S. federal withholding tax of 30%
    on dividends and the gross proceeds of a disposition of our
    common stock paid after December 31, 2012 to a
    non-financial foreign entity unless such entity provides the
    withholding agent with a certification identifying the direct
    and indirect U.S. owners of the entity. Under certain
    circumstances, a
non-U.S. stockholder
might be eligible for refunds or credits of such taxes.
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Prospective investors are encouraged to consult with their own
    tax advisors regarding the possible implications of this
    legislation on their investment in our common stock.
    Stockholders are encouraged to consult with their own tax
    advisors regarding the possible implications of the legislation
    on their investment in our common stock.
The preceding discussion of U.S. federal tax
    considerations is for general information only. It is not tax
    advice. Each prospective investor should consult its own tax
    advisor regarding the particular U.S. federal, state and
    local and
Non-U.S. tax
consequences of purchasing, holding and disposing of our common
    stock, including the consequences of any proposed change in
    applicable laws.
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UNDERWRITING
Under the terms and subject to the conditions contained in an
    underwriting agreement
    dated         ,
    2010 we and the selling stockholders have agreed to sell to the
    underwriters named below, for whom Credit Suisse Securities
    (USA) LLC and Deutsche Bank Securities Inc. are acting as
    representatives, the following respective numbers of shares of
    common stock:
Underwriter
Number of Shares
Credit Suisse Securities (USA) LLC
Deutsche Bank Securities Inc.
JMP Securities LLC
Pacific Crest Securities LLC
RBC Capital Markets Corporation
William Blair & Company, L.L.C.
Total
The underwriting agreement provides that the underwriters are
    obligated to purchase all the shares of common stock in the
    offering if any are purchased, other than those shares covered
    by the over-allotment option described below. The underwriting
    agreement also provides that if an underwriter defaults, the
    purchase commitments of non-defaulting underwriters may be
    increased or, in some circumstances, the offering may be
    terminated.
The selling stockholders have granted to the underwriters a
30-day
option to purchase on a pro rata basis up
    to         
    additional shares at the initial public offering price less the
    underwriting discounts and commissions. The option may be
    exercised only to cover any over-allotments of common stock.
The underwriters propose to offer the shares of common stock
    initially at the public offering price on the cover page of this
    prospectus and to selling group members at that price less a
    selling concession of $      per share.
    The underwriters and selling group members may allow a discount
    of $      per share on sales to other
    broker/dealers. After the initial public offering, the
    representatives may change the public offering price and
    concession and discount to broker/dealers.
The following table summarizes the compensation and estimated
    expenses we and the selling stockholders will pay:
Per Share
Total
Without
With
Without
With
Over-allotment
Over-allotment
Over-allotment
Over-allotment
Underwriting discounts and commissions paid by us
Expenses payable by us
Underwriting discounts and commissions paid by the selling
    stockholders
Expenses payable by the selling stockholders
The representatives have informed us that they do not expect
    sales to accounts over which the underwriters have discretionary
    authority to exceed 5% of the shares of common stock being
    offered.
We have agreed that we will not offer, sell, contract to sell,
    pledge or otherwise dispose of, directly or indirectly, or file
    with the SEC a registration statement under the Securities Act
    relating to, any shares of our common stock or securities
    convertible into or exchangeable or exercisable for any shares
    of our common stock, or publicly disclose the intention to make
    any offer, sale, pledge, disposition or filing, without the
    prior written consent of the representatives for a period of
    180 days after the date of this prospectus, except grants
    of, or issuances pursuant to the exercise of, employee stock
    options granted pursuant to the terms of a plan now in effect
    and limited issuances in connection with acquisitions and other
    strategic transactions so long as
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such recipients execute a
lock-up
agreement in the form described below covering the remaining
    portion of the 180 day-period after the date of this
    prospectus. However, in the event that either (1) during
    the last 17 days of the
"lock-up"
period, we release earnings results or material news or a
    material event relating to us occurs or (2) prior to the
    expiration of the
"lock-up"
period, we announce that we will release earnings results during
    the
16-day
period beginning on the last day of the
"lock-up"
period, then in either case the expiration of the
"lock-up"
will be extended until the expiration of the
18-day
period beginning on the date of the release of the earnings
    results or the occurrence of the material news or event, as
    applicable, unless the representatives waive, in writing, such
    an extension.
Subject to certain exceptions, our officers, directors and
    holders of substantially all of our outstanding stock, options
    and warrants have agreed that they will not offer, sell,
    contract to sell, pledge or otherwise dispose of, directly or
    indirectly, any shares of our common stock or securities
    convertible into or exchangeable or exercisable for any shares
    of our common stock, enter into a transaction that would have
    the same effect, or enter into any swap, hedge or other
    arrangement that transfers, in whole or in part, any of the
    economic consequences of ownership of our common stock, whether
    any of these transactions are to be settled by delivery of our
    common stock or other securities, in cash or otherwise, or
    publicly disclose the intention to make any such offer, sale,
    pledge or disposition, or to enter into any transaction, swap,
    hedge or other arrangement, without, in each case, the prior
    written consent of the representatives for a period of
    180 days after the date of this prospectus. However, in the
    event that either (1) during the last 17 days of the
"lock-up"
period, we release earnings results or material news or a
    material event relating to us occurs or (2) prior to the
    expiration of the
"lock-up"
period, we announce that we will release earnings results during
    the
16-day
period beginning on the last day of the
"lock-up"
period, then in either case the expiration of the
"lock-up"
will be extended until the expiration of the
18-day
period beginning on the date of the release of the earnings
    results or the occurrence of the material news or event, as
    applicable, unless the representatives waive, in writing, such
    an extension.
The underwriters have reserved for sale at the initial public
    offering price up
    to          shares
    of the common stock for employees, directors and other persons
    associated with us who have expressed an interest in purchasing
    common stock in the offering. The number of shares available for
    sale to the general public in the offering will be reduced to
    the extent these persons purchase the reserved shares. Any
    reserved shares not so purchased will be offered by the
    underwriters to the general public on the same terms as the
    other shares.
We and the selling stockholders have agreed to indemnify the
    underwriters against liabilities under the Securities Act, or
    contribute to payments that the underwriters may be required to
    make in that respect.
We expect to apply to list the shares of our common stock on the
    NASDAQ Global Market under the symbol
    "    ."
In connection with the offering the underwriters may engage in
    stabilizing transactions, over-allotment transactions, syndicate
    covering transactions and penalty bids in accordance with
    Regulation M under the Exchange Act.
•
Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
•
Over-allotment transactions involve sales by the underwriters of
    shares in excess of the number of shares the underwriters are
    obligated to purchase, which creates a syndicate short position.
    The short position may be either a covered short position or a
    naked short position. In a covered short position, the number of
    shares over-allotted by the underwriters is not greater than the
    number of shares that they may purchase in the over-allotment
    option. In a naked short position, the number of shares involved
    is greater than the number of shares in the over-allotment
    option. The underwriters may close out any covered short
    position by either exercising their over-allotment option
and/or
purchasing shares in the open market.
•
Syndicate covering transactions involve purchases of the common
    stock in the open market after the distribution has been
    completed in order to cover syndicate short positions. In
    determining the source of shares to close out the short
    position, the underwriters will consider, among other things,
    the price of
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shares available for purchase in the open market as compared to
    the price at which they may purchase shares through the
    over-allotment option. If the underwriters sell more shares than
    could be covered by the over-allotment option, a naked short
    position, the position can only be closed out by buying shares
    in the open market. A naked short position is more likely to be
    created if the underwriters are concerned that there could be
    downward pressure on the price of the shares in the open market
    after pricing that could adversely affect investors who purchase
    in the offering.
•
Penalty bids permit the representatives to reclaim a selling
    concession from a syndicate member when the common stock
    originally sold by the syndicate member is purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.
These stabilizing transactions, over-allotment transactions,
    syndicate covering transactions and penalty bids may have the
    effect of raising or maintaining the market price of our common
    stock or preventing or retarding a decline in the market price
    of the common stock. As a result the price of our common stock
    may be higher than the price that might otherwise exist in the
    open market. These transactions may be effected on the NASDAQ
    Global Market or otherwise and, if commenced, may be
    discontinued at any time.
A prospectus in electronic format may be made available on the
    web sites maintained by one or more of the underwriters, or
    selling group members, if any, participating in this offering
    and one or more of the underwriters participating in this
    offering may distribute prospectuses electronically. The
    representatives may agree to allocate a number of shares to
    underwriters and selling group members for sale to their online
    brokerage account holders. Internet distributions will be
    allocated by the underwriters and selling group members that
    will make Internet distributions on the same basis as other
    allocations.
From time to time, the underwriters may perform investment
    banking and advisory services for us for which they may receive
    customary fees and expenses.
The shares of common stock are offered for sale in those
    jurisdictions in the United States, Europe and elsewhere where
    it is lawful to make such offers.
Each of the underwriters has represented and agreed that it has
    not offered, sold or delivered and will not offer, sell or
    deliver any of the shares of common stock directly or
    indirectly, or distribute this prospectus or any other offering
    material relating to the shares of common stock, in or from any
    jurisdiction except under circumstances that will result in
    compliance with the applicable laws and regulations thereof and
    that will not impose any obligations on us except as set forth
    in the underwriting agreement.
European
    Economic Area
In relation to each Member State of the European Economic Area
    that has implemented the Prospectus Directive, each, a Relevant
    Member State, each underwriter represents and agrees that with
    effect from and including the date on which the Prospectus
    Directive is implemented in that Relevant Member State, or the
    Relevant Implementation Date, it has not made and will not make
    an offer of Securities to the public in that Relevant Member
    State prior to the publication of a prospectus in relation to
    the Securities that has been approved by the competent authority
    in that Relevant Member State or, where appropriate, approved in
    another Relevant Member State and notified to the competent
    authority in that Relevant Member State, all in accordance with
    the Prospectus Directive, except that it may, with effect from
    and including the Relevant Implementation Date, make an offer of
    Securities to the public in that Relevant Member State at any
    time,
(a) to legal entities which are authorized or regulated to
    operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities;
(b) to any legal entity which has two or more of
    (1) an average of at least 250 employees during the
    last financial year; (2) a total balance sheet of more than
    €43,000,000 and (3) an annual net turnover of more
    than €50,000,000, as shown in its last annual or
    consolidated accounts;
(c) to fewer than 100 natural or legal persons (other than
    qualified investors as defined in the Prospectus Directive)
    subject to obtaining the prior consent of the manager for any
    such offer; or
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(d) in any other circumstances that do not require the
    publication by the Issuer of a prospectus pursuant to
    Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an
    "offer of Shares to the public" in relation to any
    Shares in any Relevant Member State means the communication in
    any form and by any means of sufficient information on the terms
    of the offer and the Shares to be offered so as to enable an
    investor to decide to purchase or subscribe the Shares, as the
    same may be varied in that Member State by any measure
    implementing the Prospectus Directive in that Member State and
    the expression Prospectus Directive means Directive 2003/71/EC
    and includes any relevant implementing measure in each Relevant
    Member State.
Notice to
    Investors in the United Kingdom
Each of the underwriters severally represents, warrants and
    agrees as follows:
(a) it has only communicated or caused to be communicated
    and will only communicate or cause to be communicated an
    invitation or inducement to engage in investment activity
    (within the meaning of section 21 of the Financial Services
    and Markets Act 2000, or the FSMA) to persons who have
    professional experience in matters relating to investments
    falling with Article 19(5) of the Financial Services and
    Markets Act 2000 (Financial Promotion) Order 2005 or in
    circumstances in which section 21 of FSMA does not apply to
    us; and
(b) it has complied with, and will comply with all
    applicable provisions of FSMA with respect to anything done by
    it in relation to the shares of common stock in, from or
    otherwise involving the United Kingdom.
Notice to
    Residents of Japan
The underwriters will not offer or sell any of our common stock
    directly or indirectly in Japan or to, or for the benefit of any
    Japanese person or to others, for re-offering or re-sale
    directly or indirectly in Japan or to any Japanese person,
    except in each case pursuant to an exemption from the
    registration requirements of, and otherwise in compliance with,
    the Securities and Exchange Law of Japan and any other
    applicable laws and regulations of Japan. For purposes of this
    paragraph, "Japanese person" means any person resident
    in Japan, including any corporation or other entity organized
    under the laws of Japan.
Notice to
    Residents of Hong Kong
The underwriters and each of their affiliates have not
    (i) offered or sold, and will not offer or sell, in Hong
    Kong, by means of any document, our common stock other than
    (a) to "professional investors" as defined in the
    Securities and Futures Ordinance (Cap.571) of Hong Kong and any
    rules made under that Ordinance or (b) in other
    circumstances which do not result in the document being a
    "prospectus" as defined in the Companies Ordinance
    (Cap. 32) of Hong Kong or which do not constitute an offer
    to the public within the meaning of that Ordinance or
    (ii) issued or had in its possession for the purposes of
    issue, and will not issue or have in its possession for the
    purposes of issue, whether in Hong Kong or elsewhere any
    advertisement, invitation or document relating to our common
    stock which is directed at, or the contents of which are likely
    to be accessed or read by, the public in Hong Kong (except if
    permitted to do so under the securities laws of Hong Kong) other
    than with respect to our securities which are or are intended to
    be disposed of only to persons outside Hong Kong or only to
    "professional investors" as defined in the Securities
    and Futures Ordinance and any rules made under that Ordinance.
    The contents of this document have not been reviewed by any
    regulatory authority in Hong Kong. You are advised to exercise
    caution in relation to the offer. If you are in any doubt about
    any of the contents of this document, you should obtain
    independent professional advice.
Notice to
    Residents of Singapore
This prospectus or any other offering material relating to our
    common stock has not been and will not be registered as a
    prospectus with the Monetary Authority of Singapore, and the
    common stock will be offered in
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Singapore pursuant to exemptions under Section 274 and
    Section 275 of the Securities and Futures Act,
    Chapter 289 of Singapore, or the Securities and Futures
    Act. Accordingly our common stock may not be offered or sold, or
    be the subject of an invitation for subscription or purchase,
    nor may this prospectus or any other offering material relating
    to our common stock be circulated or distributed, whether
    directly or indirectly, to the public or any member of the
    public in Singapore other than (a) to an institutional
    investor or other person specified in Section 274 of the
    Securities and Futures Act, (b) to a sophisticated
    investor, and in accordance with the conditions specified in
    Section 275 of the Securities and Futures Act or
    (c) otherwise pursuant to, and in accordance with the
    conditions of, any other applicable provision of the Securities
    and Futures Act.
Notice to
    Residents of Germany
Each person who is in possession of this prospectus is aware of
    the fact that no German sales prospectus (Verkaufsprospekt)
    within the meaning of the Securities Sales Prospectus Act,
    Wertpapier-Verkaufsprospektgesetz, or the Act, of the Federal
    Republic of Germany has been or will be published with respect
    to our common stock. In particular, each underwriter has
    represented that it has not engaged and has agreed that it will
    not engage in a public offering in (offentliches Angebot) within
    the meaning of the Act with respect to any of our common stock
    otherwise than in accordance with the Act and all other
    applicable legal and regulatory requirements.
Notice to
    Residents of France
The shares of common stock are being issued and sold outside the
    Republic of France and that, in connection with their initial
    distribution, it has not offered or sold and will not offer or
    sell, directly or indirectly, any shares of common stock to the
    public in the Republic of France, and that it has not
    distributed and will not distribute or cause to be distributed
    to the public in the Republic of France this prospectus or any
    other offering material relating to the shares of common stock,
    and that such offers, sales and distributions have been and will
    be made in the Republic of France only to qualified investors
    (investisseurs qualifiés) in accordance with
Article L.411-2
of the Monetary and Financial Code and decrét
no. 98-880
dated 1st October, 1998.
Notice to
    Residents of the Netherlands
Our common stock may not be offered, sold, transferred or
    delivered in or from the Netherlands as part of their initial
    distribution or at any time thereafter, directly or indirectly,
    other than to, individuals or legal entities situated in the
    Netherlands who or which trade or invest in securities in the
    conduct of a business or profession (which includes banks,
    securities intermediaries (including dealers and brokers),
    insurance companies, pension funds, collective investment
    institution, central governments, large international and
    supranational organizations, other institutional investors and
    other parties, including treasury departments of commercial
    enterprises, which as an ancillary activity regularly invest in
    securities (hereinafter, the Professional Investors), provided
    that in the offer, prospectus and in any other documents or
    advertisements in which a forthcoming offering of our common
    stock is publicly announced (whether electronically or
    otherwise) in the Netherlands it is stated that such offer is
    and will be exclusively made to such Professional Investors.
    Individual or legal entities who are not Professional Investors
    may not participate in the offering of our common stock, and
    this prospectus or any other offering material relating to our
    common stock may not be considered an offer or the prospect of
    an offer to sell or exchange our common stock.
Notice to
    Residents of Italy
No prospectus has or will be registered in the Republic of Italy
    with the Italian Stock Exchange Commission (
Commissione
    Nazionale per le Societá di Borsa
), or Consob, pursuant
    to the Prospectus Directive and Italian laws and regulations on
    financial products. Accordingly, the common stock may not be
    offered, sold or delivered in the Republic of Italy, and copies
    of this prospectus or any other document relating to the common
    stock may not be distributed in the Republic of Italy, except to
    (a) qualified investors (
investori qualificati
), or
    the Qualified Investors, pursuant to Article 100 of
    Legislative Decree no. 58 dated February 24,
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1998, as amended, or the Financial Act, as defined in
Article 34-
ter
of Consob Regulation no. 11971 dated May 14. 1999,
    as amended, Regulation no. 11971; or (b) in
    circumstances where there is an exemption from the rules
    governing an offer to the public of financial products pursuant
    to Article 94
et seq.
of the Financial Act, and
    to Regulation no. 11971. Any offer, sale or delivery of the
    common stock in the Republic of Italy must be (a) made by
    an investment firm, a bank or financial intermediary authorized
    to engage in such activities in Italy, in compliance with the
    Financial Act and with Legislative Decree no. 385 dated
    September 1, 1993, as amended and Consob Regulation
    no. 16190 dated October 29, 2007, as amended, and any
    other applicable law and regulation; and (b) in compliance
    with any applicable Italian laws and regulations and any other
    condition or limitation that may be imposed by Consob, the Bank
    of Italy (
Banca d'Italia
) and any other relevant
    Italian authorities.
Notice to
    Residents of Switzerland
The common stock may not and will not be publicly offered,
    distributed or re-distributed in or from Switzerland and neither
    this prospectus nor any other solicitation for investments in
    the common stock may be communicated or distributed in
    Switzerland in any way that could constitute a public offering
    within the meaning of Articles 652a and 1156 of the Swiss
    Code of Obligations. This prospectus may not be copied,
    reproduced, distributed or passed on to others without the prior
    written consent of the international underwriters. This
    prospectus is not a prospectus within the meaning of
    Articles 652a and 1156 of the Swiss Code of Obligations or
    a listing prospectus according to the Listing Rules of the SIX
    Swiss Exchange and may not comply with the information standards
    required thereunder. We will not apply for a listing of our
    common stock on any Swiss stock exchange or other Swiss
    regulated market and this prospectus may not comply with the
    information required under the relevant listing rules.
143
Table of Contents
NOTICE TO
    CANADIAN RESIDENTS
Resale
    Restrictions
The distribution of the common stock in Canada is being made
    only on a private placement basis exempt from the requirement
    that we and the selling stockholders prepare and file a
    prospectus with the securities regulatory authorities in each
    province where trades of common stock are made. Any resale of
    the common stock in Canada must be made under applicable
    securities laws which will vary depending on the relevant
    jurisdiction, and which may require resales to be made under
    available statutory exemptions or under a discretionary
    exemption granted by the applicable Canadian securities
    regulatory authority. Purchasers are advised to seek legal
    advice prior to any resale of the common stock.
Representations
    of Purchasers
By purchasing common stock in Canada and accepting a purchase
    confirmation a purchaser is representing to us, the selling
    stockholders and the dealer from whom the purchase confirmation
    is received that:
•
the purchaser is entitled under applicable provincial securities
    laws to purchase the common stock without the benefit of a
    prospectus qualified under those securities laws,
•
where required by law, that the purchaser is purchasing as
    principal and not as agent,
•
the purchaser has reviewed the text above under Resale
    Restrictions, and
•
the purchaser acknowledges and consents to the provision of
    specified information concerning its purchase of the common
    stock to the regulatory authority that by law is entitled to
    collect the information.
Further details concerning the legal authority for this
    information is available on request.
Rights of
    Action — Ontario Purchasers Only
Under Ontario securities legislation, certain purchasers who
    purchase a security offered by this prospectus during the period
    of distribution will have a statutory right of action for
    damages, or while still the owner of the common stock, for
    rescission against us and the selling stockholders in the event
    that this prospectus contains a misrepresentation without regard
    to whether the purchaser relied on the misrepresentation. The
    right of action for damages is exercisable not later than the
    earlier of 180 days from the date the purchaser first had
    knowledge of the facts giving rise to the cause of action and
    three years from the date on which payment is made for the
    common stock. The right of action for rescission is exercisable
    not later than 180 days from the date on which payment is
    made for the common stock. If a purchaser elects to exercise the
    right of action for rescission, the purchaser will have no right
    of action for damages against us or the selling stockholders. In
    no case will the amount recoverable in any action exceed the
    price at which the common stock were offered to the purchaser
    and if the purchaser is shown to have purchased the securities
    with knowledge of the misrepresentation, we and the selling
    stockholders will have no liability. In the case of an action
    for damages, we and the selling stockholders will not be liable
    for all or any portion of the damages that are proven to not
    represent the depreciation in value of the common stock as a
    result of the misrepresentation relied upon. These rights are in
    addition to, and without derogation from, any other rights or
    remedies available at law to an Ontario purchaser. The foregoing
    is a summary of the rights available to an Ontario purchaser.
    Ontario purchasers should refer to the complete text of the
    relevant statutory provisions.
Enforcement
    of Legal Rights
All of our directors and officers as well as the experts named
    herein and the selling stockholders may be located outside of
    Canada and, as a result, it may not be possible for Canadian
    purchasers to effect service of process within Canada upon us or
    those persons. All or a substantial portion of our assets and
    the assets of those persons may be located outside of Canada
    and, as a result, it may not be possible to satisfy a judgment
144
Table of Contents
against us or those persons in Canada or to enforce a judgment
    obtained in Canadian courts against us or those persons outside
    of Canada.
Taxation
    and Eligibility for Investment
Canadian purchasers of common stock should consult their own
    legal and tax advisors with respect to the tax consequences of
    an investment in the common stock in their particular
    circumstances and about the eligibility of the common stock for
    investment by the purchaser under relevant Canadian legislation.
LEGAL
    MATTERS
The validity of the shares of common stock offered hereby will
    be passed upon for us by Wilson Sonsini Goodrich &
    Rosati, Professional Corporation, Austin, Texas. Certain legal
    matters in connection with the offering will be passed upon for
    the underwriters by Simpson Thacher & Bartlett LLP,
    Palo Alto, California.
EXPERTS
The consolidated financial statements of RealPage, Inc. at
    December 31, 2008 and 2009, and for each of the three years
    in the period ended December 31, 2009, appearing in this
    prospectus and the registration statement have been audited by
    Ernst & Young LLP, independent registered public
    accounting firm, as set forth in their report thereon appearing
    elsewhere herein, and are included in reliance upon such report
    given on the authority of such firm as experts in accounting and
    auditing.
WHERE YOU
    CAN FIND ADDITIONAL INFORMATION
We have filed with the SEC a registration statement on
Form S-1
under the Securities Act with respect to the shares of common
    stock we are offering. The registration statement, including the
    attached exhibits and schedule, contains additional relevant
    information about us and our common stock. This prospectus does
    not contain all of the information set forth in the registration
    statement and the exhibits and schedule thereto. The rules and
    regulations of the SEC allow us to omit from this prospectus
    certain information included in the registration statement.
For further information about us and the common stock, you may
    inspect a copy of the registration statement and the exhibits
    and schedule to the registration statement without charge at the
    offices of the SEC at 100 F Street, N.E.,
    Washington, D.C. 20549. You may obtain copies of all or any
    part of the registration statement from the Public Reference
    Section of the SEC, 100 F Street, N.E.,
    Washington, D.C. 20549 upon the payment of the prescribed
    fees. You may obtain information on the operation of the Public
    Reference Room by calling the SEC at
1-800-SEC-0330.
The SEC maintains a website at www.sec.gov that contains
    reports, proxy and information statements and other information
    regarding registrants that file electronically with the SEC. You
    can also inspect our registration statement on this website.
145
Table of Contents
INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS
Page
Report of Ernst & Young LLP,
    Independent Registered Public Accounting Firm
F-2
Consolidated Balance Sheets
F-3
Consolidated Statements of Operations
F-4
Consolidated Statements of Changes in Redeemable
    Convertible Preferred Stock and Stockholders' Deficit
F-5
Consolidated Statements of Cash Flows
F-6
Notes to Consolidated Financial Statements
F-7
F-1
Table of Contents
Report of
    Independent Registered Public Accounting Firm
The Board of Directors and Stockholders of
RealPage, Inc.
We have audited the accompanying consolidated balance sheets of
    RealPage, Inc. (the "Company") as of December 31,
    2008 and 2009, and the related consolidated statements of
    operations, changes in redeemable convertible preferred stock
    and stockholders' deficit and cash flows for each of the
    three years in the period ended December 31, 2009. Our
    audits also included the financial statement schedule listed in
    the index under Item 16(b). These financial statements and
    schedule are the responsibility of the Company's
    management. Our responsibility is to express an opinion on these
    financial statements and schedule based on our audits.
We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements and
    schedule are free of material misstatement. We were not engaged
    to perform an audit of the Company's internal control over
    financial reporting. Our audits included consideration of
    internal control over financial reporting as a basis for
    designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the Company's internal control over
    financial reporting. Accordingly, we express no such opinion. An
    audit also includes examining, on a test basis, evidence
    supporting the amounts and disclosures in the financial
    statements, assessing the accounting principles used and
    significant estimates made by management, and evaluating the
    overall financial statement presentation. We believe that our
    audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
    present fairly, in all material respects, the consolidated
    financial position of RealPage, Inc. at December 31, 2008
    and 2009, and the consolidated results of its operations and its
    cash flows for each of the three years in the period ended
    December 31, 2009 in conformity with United States
    generally accepted accounting principles. Also, in our opinion,
    the related financial statement schedule, when considered in
    relation to the basic financial statements taken as a whole,
    presents fairly in all material respects, the information set
    forth within.
As discussed in Note 2 to the consolidated financial statements,
    the Company changed its method of accounting for business
    combinations on January 1, 2009.
/s/ Ernst & Young LLP
Dallas, Texas
April 28, 2010
F-2
Table of Contents
RealPage,
    Inc.
Consolidated
    Balance Sheets
(in thousands, except share and per share amounts)
Pro Forma
December 31,
December 31,
2008
2009
2009
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
4,248
$
4,427
Restricted cash
14,131
14,886
Accounts receivable, less allowance for doubtful accounts of
    $2,895 at December 31, 2008, and $2,222 at
    December 31, 2009
27,459
25,841
Deferred tax asset, net of valuation allowance
—
3,110
Other current assets
3,281
2,739
Total current assets
49,119
51,003
Property, equipment, and software, net
19,137
20,749
Goodwill
17,849
27,366
Identified intangible assets, net
15,125
22,891
Deferred tax asset, net of valuation allowance
—
17,803
Other assets
1,110
2,301
Total assets
$
102,340
$
142,113
Liabilities, redeemable convertible preferred stock and
    stockholders' deficit
Current liabilities:
Accounts payable
$
3,405
$
3,705
Accrued expenses and other current liabilities
13,255
10,830
Current portion of deferred revenue
42,213
43,994
Current portion of long-term debt
6,216
8,412
Customer deposits held in restricted accounts
14,117
15,127
Total current liabilities
79,206
82,068
Deferred revenue
5,019
5,434
Deferred tax liability
1,132
—
Revolving credit facility
10,000
—
Long-term debt, less current portion
27,498
43,449
Other long-term liabilities
6,767
5,806
Total liabilities
129,622
136,757
Commitments and contingencies (Note 9)
Redeemable convertible preferred stock, Series A and A1,
    $0.001 par value: authorized, issued and outstanding
    51,812,500 shares (liquidation value $51,823 and $51,823 at
    December 31, 2008 and 2009, respectively):
51,724
51,786
—
Redeemable convertible preferred stock, Series B,
    $0.001 par value: authorized, issued and outstanding
    3,250,000 shares (liquidation value $6,500 and $6,500 at
    December 31, 2008 and 2009, respectively):
6,478
6,491
—
Redeemable convertible preferred stock, Series C,
    $0.001 par value: authorized, issued and outstanding
    3,025,000 shares. (liquidation value $13,613 and $13,613 at
    December 31, 2008 and 2009, respectively):
13,473
13,555
—
Stockholders' (deficit) equity:
Common stock, $0.001 par value: 135,000,000 shares
    authorized and 47,543,000 and 53,334,684 issued and 47,404,388
    and 52,921,608 outstanding as of December 31, 2008 and
    2009, respectively
48
53
111
Additional paid-in capital
19,670
24,206
95,980
Treasury stock shares, at cost — 138,884 and
    413,076 shares as of December 31, 2008 and 2009,
    respectively
(449
)
(938
)
(938
)
Accumulated deficit
(118,226
)
(89,797
)
(89,797
)
Total stockholders' (deficit) equity
(98,957
)
(66,476
)
5,356
Total liabilities, redeemable convertible preferred stock and
    stockholders' deficit
$
102,340
$
142,113
See accompanying notes
F-3
Table of Contents
RealPage,
    Inc.
Consolidated
    Statements of Operations
(in thousands, except per share amounts)
Year Ended December 31,
2007
2008
2009
Revenue:
On demand
$
62,592
$
95,192
$
128,377
On premise
11,560
7,582
3,860
Professional and other
9,429
9,794
8,665
Total revenue
83,581
112,568
140,902
Cost of
    revenue
(1)
35,703
46,058
58,513
Gross profit
47,878
66,510
82,389
Operating expense:
Product
    development
(1)
21,708
28,806
27,446
Sales and
    marketing
(1)
18,047
23,923
27,804
General and
    administrative
(1)
9,756
14,135
20,210
Total operating expense
49,511
66,864
75,460
Operating (loss) income
(1,633
)
(354
)
6,929
Interest expense, net
(1,510
)
(2,152
)
(4,528
)
(Loss) income before income taxes
(3,143
)
(2,506
)
2,401
Income tax expense (benefit)
—
703
(26,028
)
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
Net (loss) income attributable to common stockholders
Basic
$
(9,143
)
$
(10,658
)
$
10,757
Diluted
$
(9,143
)
$
(10,658
)
$
10,757
Net (loss) income per share attributable to common
    stockholders
Basic
$
(0.45
)
$
(0.38
)
$
0.22
Diluted
$
(0.45
)
$
(0.38
)
$
0.21
Weighted average shares used in computing net (loss) income per
    share attributable to common stockholders
Basic
20,446
27,773
47,869
Diluted
20,446
27,773
51,025
Pro forma net income per share attributable to common
    stockholders
    (unaudited)
(2)
Basic
$
0.27
Diluted
$
0.26
Pro forma weighted average shares outstanding used in computing
    net income per share attributable to common stockholders
    (unaudited)
(3)
Basic
105,957
Diluted
109,113
(1) Includes stock-based compensation expense as follows:
Year Ended December 31,
2007
2008
2009
Cost of revenue
$
48
$
104
$
367
Product development
251
727
1,175
Sales and marketing
110
277
498
General and administrative
81
368
765
Total stock-based compensation expense
$
490
$
1,476
$
2,805
(2)
Pro forma net income per share
    represents net income divided by the pro forma weighted average
    shares outstanding as though the conversion of our redeemable
    convertible preferred stock into common stock occurred on the
    initial issuance dates.
(3)
Pro forma weighted average shares
    outstanding reflects the conversion of our redeemable
    convertible preferred stock (using the if-converted method) into
    common stock as though the conversion had occurred on the
    original dates of issuance.
See accompanying notes
F-4
Table of Contents
RealPage,
    Inc.
Consolidated
    Statements of Redeemable Convertible Preferred Stock and
    Stockholders' Deficit
(in thousands)
Redeemable Convertible
Additional
Total
Preferred Stock
Common Stock
Paid-in
Accumulated
Treasury Shares
Stockholders'
Shares
Amount
Shares
Amount
Capital
Deficit
Shares
Amount
Deficit
Balance as of December 31, 2006
55,063
$
72,300
20,133
$
20
$
12,581
$
(111,874
)
—
—
$
(99,273
)
Accretion of redeemable convertible preferred stock
—
6,234
—
—
(6,234
)
—
—
—
(6,234
)
Exercise of stock options
—
—
969
1
968
—
—
—
969
Exercise of stock warrants
—
—
175
—
175
—
—
—
175
Stock-based compensation
—
—
—
—
490
—
—
—
490
Warrants issued to a customer
—
—
—
—
47
—
—
—
47
Net (loss)
—
—
—
—
—
(3,143
)
—
—
(3,143
)
Balance as of December 31, 2007
55,063
78,534
21,277
21
8,027
(115,017
)
—
—
(106,969
)
Issuance of redeemable convertible preferred stock
3,025
13,357
—
—
—
—
—
—
—
Accretion of redeemable convertible preferred stock
—
7,698
—
—
(7,698
)
—
—
—
(7,698
)
Exercise of stock options
—
—
665
1
770
—
—
—
771
Exercise of stock warrants
—
—
9,306
9
262
—
—
—
271
Conversion of redeemable convertible preferred stock dividends
(27,914
)
16,295
17
16,833
—
—
—
16,850
Treasury stock purchase, at cost
—
—
—
—
—
—
(139
)
$
(449
)
(449
)
Stock-based compensation
—
—
—
—
1,476
—
—
—
1,476
Net (loss)
—
—
—
—
—
(3,209
)
—
—
(3,209
)
Balance as of December 31, 2008
58,088
71,675
47,543
48
19,670
(118,226
)
(139
)
(449
)
(98,957
)
Accretion of redeemable convertible preferred stock
—
5,678
—
—
(5,678
)
—
—
—
(5,678
)
Exercise of stock options
—
—
356
—
543
—
—
—
543
Exercise of stock warrants
—
—
400
—
4
—
—
—
4
Common stock warrants converted
—
—
32
—
—
—
—
—
—
Conversion of redeemable convertible preferred stock dividends
—
(5,521
)
2,837
3
3,002
—
—
—
3,005
Issuances related to acquisitions
—
—
2,167
2
3,860
—
—
—
3,862
Treasury stock purchase, at cost
—
—
—
—
—
—
(274
)
(489
)
(489
)
Stock-based compensation
—
—
—
—
2,805
—
—
—
2,805
Net income
—
—
—
—
—
28,429
—
—
28,429
Balance as of December 31, 2009
58,088
$
71,832
53,335
$
53
$
24,206
$
(89,797
)
(413
)
$
(938
)
$
(66,476
)
See accompanying notes.
F-5
Table of Contents
RealPage,
    Inc.
Consolidated
    Statements of Cash Flows
(in thousands)
Year Ended December 31,
2007
2008
2009
Cash flows from operating activities:
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
Adjustments to reconcile net (loss) income to net cash provided
    by operating activities:
Depreciation and amortization
7,127
10,997
14,769
Deferred tax expense (benefit)
—
489
(26,308
)
Stock-based compensation
490
1,476
2,805
Loss on disposal of assets
—
115
127
Impairment of assets
—
830
119
Changes in assets and liabilities, net of assets acquired and
    liabilities assumed in business combinations:
Accounts receivable
(5,168
)
(7,622
)
2,407
Customer deposits
—
(105
)
255
Other current assets
(330
)
(203
)
559
Other assets
(375
)
(290
)
(1,140
)
Accounts payable
939
(579
)
645
Accrued compensation, taxes and benefits
210
934
(461
)
Deferred revenue
4,382
5,561
1,094
Other current and long-term liabilities
309
(432
)
1,458
Net cash provided by operating activities
4,441
7,962
24,758
Cash flows from investing activities:
Purchases of property, equipment and software
(7,122
)
(10,263
)
(9,509
)
Acquisition of businesses, net of cash acquired
(9,033
)
(22,057
)
(15,167
)
Net cash used by investing activities
(16,155
)
(32,320
)
(24,676
)
Cash flows from financing activities:
Proceeds from notes payable
10,917
15,521
35,000
Payments on notes payable
(7,015
)
(2,454
)
(16,853
)
Proceeds from (payments on) revolving credit facility, net
7,584
1,416
(10,000
)
Payments on capital lease obligations
(678
)
(2,558
)
(5,592
)
Issuance of redeemable convertible preferred stock, net of costs
—
13,357
—
Preferred stock dividend
—
—
(2,516
)
Issuance of common stock
1,144
1,042
547
Purchase of treasury stock
—
(449
)
(489
)
Net cash provided by financing activities
11,952
25,875
97
Net increase in cash and cash equivalents
238
1,517
179
Cash and cash equivalents:
Beginning of period
2,493
2,731
4,248
End of period
$
2,731
$
4,248
$
4,427
Supplemental cash flow information:
Cash paid for interest
$
1,212
$
2,651
$
3,833
Cash paid for income taxes, net of refunds
$
39
$
117
$
228
Non-cash financing activities:
Fixed assets acquired under capital leases
$
6,320
$
2,077
$
2,462
Accrued dividends and accretion of preferred stock
$
6,234
$
7,698
$
5,678
Conversion of preferred stock dividend to common shares
$
—
$
16,850
$
3,005
See accompanying notes.
F-6
Table of Contents
RealPage,
    Inc.
Notes
    To Consolidated Financial Statements
1.
The
    Company
RealPage, Inc., a Delaware corporation, and its subsidiaries,
    (Company or we or us) is a provider of property management
    solutions that enable owners and managers of single-family and a
    wide variety of multi-family rental property types to manage
    their marketing, pricing, screening, leasing, accounting,
    purchasing and other property operations. Our on demand software
    solutions are delivered through an integrated software platform
    that provides a single point of access and a shared repository
    of prospect, resident and property data. By integrating and
    streamlining a wide range of complex processes and interactions
    among the rental housing ecosystem of owners, managers,
    prospects, residents and service providers, our platform
    optimizes the property management process and improves the
    experience for all of these constituents. Our solutions enable
    property owners and managers to optimize revenues and reduce
    operating costs through higher occupancy, improved pricing
    methodologies, new sources of revenue from ancillary services,
    improved collections and more integrated and centralized
    processes.
2.
Summary
    of Significant Accounting Policies
Basis
    of Presentation
The accompanying consolidated balance sheets as of
    December 31, 2008 and 2009 and the accompanying
    consolidated statements of operations and cash flows for each of
    the three years in the period ended December 31, 2009
    represent our financial position, results of operations and cash
    flows as of and for the periods then ended. The consolidated
    financial statements include the accounts of RealPage, Inc. and
    our wholly-owned subsidiaries. All material intercompany
    accounts and transactions have been eliminated in consolidation.
In preparing the accompanying consolidated financial statements,
    we have reviewed, as determined necessary by our management,
    events that have occurred after December 31, 2009, up until
    the issuance of the financial statements. As such, our
    management was not aware of any subsequent events, other than
    those disclosed herein, requiring additional disclosure.
Applicable
    Accounting Guidance
Any reference in these notes to applicable accounting guidance
    is meant to refer to the authoritative non-governmental United
    States generally accepted accounting principles as found in the
    Financial Accounting Standards Board's (FASB) Accounting
    Standards Codification (ASC).
Unaudited
    Pro Forma Presentation
Upon the consummation of the initial public offering
    contemplated in this prospectus, all of the outstanding shares
    of our convertible preferred stock will automatically convert
    into shares of our common stock. The December 31, 2009
    unaudited pro forma balance sheet data has been prepared
    assuming the conversion of the redeemable convertible preferred
    stock outstanding into 58,087,500 shares of common stock.
    The unaudited pro forma net income per share attributed to
    common stockholders for the year ended December 31, 2009
    was computed using the weighted average number of common shares
    outstanding and has been prepared assuming the conversion of the
    convertible preferred stock outstanding into
    58,087,500 shares of common stock.
Segment
    and Geographic Information
Our chief operating decision maker is our Chief Executive
    Officer, who reviews financial information presented on a
    company-wide basis. As a result, we determined that the Company
    has a single reporting segment and operating unit structure.
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Principally, all of our revenues for the periods ended
    December 31, 2007, 2008 and 2009 were in North America.
Net long-lived assets held were $18.6 million and
    $20.3 million in North America and $0.6 million and
    $0.5 million in our international subsidiaries at
    December 31, 2008 and 2009, respectively.
Use of
    Estimates
The preparation of financial statements in conformity with
    accounting principles generally accepted in the United States
    (GAAP) requires our management to make certain estimates and
    assumptions that affect the reported amounts of assets and
    liabilities and the disclosure of contingent assets and
    liabilities at the date of the financial statements, and the
    reported amounts of revenues and expenses during the reporting
    periods. Significant estimates include the allowance for
    doubtful accounts; the useful lives of intangible assets and the
    recoverability or impairment of tangible and intangible asset
    values; purchase accounting allocations and related reserves;
    revenue and deferred revenue; stock-based compensation; and our
    effective income tax rate and the recoverability of deferred tax
    assets, which are based upon our expectations of future taxable
    income and allowable deductions. Actual results could differ
    from these estimates.
Cash
    Equivalents
We consider all highly liquid investments with a maturity date,
    when purchased, of three months or less to be cash equivalents.
Concentrations
    of Credit Risk
Our cash accounts, including an overnight repurchase account,
    are maintained at various financial institutions and may, from
    time to time, exceed federally insured limits. The Company has
    not experienced any losses in such accounts.
Concentrations of credit risk with respect to accounts
    receivable result from substantially all of our customers being
    in the multi-family rental housing market. Our customers,
    however, are dispersed across different geographic areas. We do
    not require collateral from customers. We maintain an allowance
    for losses based upon the expected collectability of accounts
    receivable. Accounts receivable are written off upon
    determination of non-collectability following established
    Company policies based on the aging from the accounts receivable
    invoice date.
No single customer accounted for 5% or more of our revenue or
    accounts receivable for the years ended December 31, 2007,
    2008 or 2009.
Fair
    Value of Financial Instruments
Effective January 1, 2008, we adopted a new accounting
    standard which defines fair value, establishes a framework for
    measuring fair value and expands on required disclosures
    regarding fair value measurements. This standard applies to
    reported balances that are required or permitted to be measured
    at fair value under existing accounting pronouncements
    accordingly, but does not require any new fair value
    measurements of previously reported balances. The adoption had
    no impact on our consolidated results of operations or financial
    position.
Financial assets and liabilities with carrying amounts
    approximating fair value include cash and cash equivalents,
    restricted cash, accounts receivable, accounts payable and
    accrued expenses and other current liabilities. The carrying
    amount of these financial assets and liabilities approximates
    fair value because of their short maturities. The carrying
    amount of our debt and other long-term liabilities approximates
    their fair value. The fair value of debt was based upon our
    management's best estimate of interest rates that would be
    available for similar debt obligations as of December 31,
    2008 and 2009 and was consistent with the interest rates we
    received in connection with the refinancing of our debt
    obligations in February 2010.
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Accounts
    Receivable
For several of our solutions, we invoice customers prior to the
    period in which service is provided. Accounts receivable
    represent trade receivables from customers when we have invoiced
    for software solutions
and/or
services and we have not yet received payment. We present
    accounts receivable net of an allowance for doubtful accounts.
    We maintain an allowance for doubtful accounts for estimated
    losses resulting from the inability of customers to make
    required payments, or the customer cancelling prior to the
    service being rendered. In doing so, we consider the current
    financial condition of the customer, the specific details of the
    customer account, the age of the outstanding balance, the
    current economic environment and historical credit trends. As a
    result, a portion of our allowance is for services not yet
    rendered and, therefore, is charged as an offset to deferred
    revenue, which does not have an effect on the statement of
    operations. Any change in the assumptions used in analyzing a
    specific account receivable might result in an additional
    allowance for doubtful accounts being recognized in the period
    in which the change occurs.
Property,
    Equipment and Software
Property, equipment and software are recorded at cost less
    accumulated depreciation and amortization, which are computed
    using the straight-line method over the following estimated
    useful lives:
Leasehold improvements
3-10 years
Data processing and communications equipment
3-10 years
Furniture, fixtures and other equipment
3-5 years
Software
3 years
Software includes purchased software and internally developed
    software. Leasehold improvements are depreciated over the
    shorter of the lease term or the estimated useful lives of the
    assets.
Business
    Combinations
When we acquire businesses, we allocate the total consideration
    paid to the fair value of the tangible assets, liabilities, and
    identifiable intangible assets acquired. Any residual purchase
    consideration is recorded as goodwill. The allocation of the
    purchase price requires our management to make significant
    estimates in determining the fair values of assets acquired and
    liabilities assumed, in particular with respect to identified
    intangible assets. These estimates are based on the application
    of valuation models using historical experience and information
    obtained from the management of the acquired companies. These
    estimates can include, but are not limited to, the cash flows
    that an asset is expected to generate in the future, the
    appropriate weighted-average cost of capital and the cost
    savings expected to be derived from acquiring an asset. These
    estimates are inherently uncertain and unpredictable. In
    addition, unanticipated events and circumstances may occur which
    may affect the accuracy or validity of these estimates. In
    accordance with new accounting guidance, beginning in 2009, we
    began including the fair value of contingent consideration to be
    paid within the total consideration allocated to the fair value
    of the assets acquired and liabilities assumed. This requires us
    to make estimates regarding the fair value of the amounts to be
    paid. Additionally, we expense acquisition-related costs as
    incurred rather than including as a component of purchase price.
Impairment
    of Long-Lived Assets
We perform an impairment review of long-lived assets held and
    used whenever events or changes in circumstances indicate that
    the carrying value may not be recoverable. Factors we consider
    important that could trigger an impairment review include, but
    are not limited to, significant under-performance relative to
    projected future operating results, significant changes in the
    manner of our use of the acquired assets or our overall business
and/or
product strategies. When we determine that the carrying value of
    a long-lived asset may not be recoverable based upon the
    existence of one or more of these indicators, we determine the
    recoverability by comparing the carrying amount of the asset or
    asset group to net future undiscounted cash flows that the asset
    or assets are expected to generate. We would then recognize an
    impairment charge equal to the amount by which the carrying
    amount exceeds the fair market value of the asset or assets.
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In December 2008, we decided to sell certain assets associated
    with one of our service offerings with a net book value of
    $1.8 million. Assets identified for sale were written down
    to their estimated market value at December 31, 2008,
    resulting in a loss of $0.8 million. The estimated market
    value of $1.0 million was based on observable prices for
    similar assets. We have recorded these assets in other current
    assets in the consolidated balance sheet at December 31,
    2008. During 2009, a portion of these assets were sold. The
    balance of these assets at December 31, 2009, was
    $0.2 million. As the held for sale criteria were no longer
    met, these assets were reclassified to fixed assets at
    December 31, 2009.
Goodwill
    and Other Intangible Assets with Indefinite Lives
We test goodwill and other intangible assets with indefinite
    lives for impairment on an annual basis in the fourth quarter of
    each year. Additionally, we will test goodwill and other
    intangible assets with indefinite lives in the interim if events
    and circumstances indicate that goodwill and other intangible
    assets with indefinite lives may be impaired. The events and
    circumstances that we consider include significant
    under-performance relative to projected future operating results
    and significant changes in our overall business
and/or
product strategies. We evaluate impairment of goodwill and other
    intangible assets with indefinite lives using a two-step
    process. The first step involves a comparison of the fair value
    of a reporting unit with its carrying amount. If the carrying
    amount of the reporting unit exceeds its fair value, the second
    step of the process involves a comparison of the fair value and
    carrying amount of the goodwill and other intangible assets with
    indefinite lives of that reporting unit. If the carrying amount
    of the goodwill and other intangible assets with indefinite
    lives of a reporting unit exceeds the fair value of that
    goodwill and other intangible assets with indefinite lives, we
    would recognize an impairment loss equal to the excess of
    carrying value over fair value. If an event occurs that would
    cause us to revise our estimates and assumptions used in
    analyzing the value of our goodwill and other intangible assets
    with indefinite lives, the revision could result in a non-cash
    impairment charge that could have a material impact on our
    financial results. There was no impairment of goodwill or
    intangible assets with indefinite lives in 2007, 2008 or 2009.
Intangible
    Assets
Intangible assets consist of acquired developed product
    technologies, acquired customer relationships, vendor
    relationships, non-competition agreements and tradenames. We
    record intangible assets at fair value and amortize those with
    finite lives over the shorter of the contractual life or the
    estimated useful life. We estimate the useful lives of acquired
    developed product technologies and customer relationships based
    on factors that include the planned use of each developed
    product technology and the expected pattern of future cash flows
    to be derived from each developed product technology and
    existing customer relationships. We include amortization of
    acquired developed product technologies in cost of revenue,
    amortization of acquired customer relationships in sales and
    marketing expenses and amortization of vendor relationships and
    non-competition agreements in general and administrative
    expenses in our consolidated statements of operations.
Income
    Taxes
Income taxes are provided based on the liability method, which
    results in income tax assets and liabilities arising from
    temporary differences. Temporary differences are differences
    between the tax basis of assets and liabilities and their
    reported amounts in the financial statements that will result in
    taxable or deductible amounts in future years. The liability
    method requires the effect of tax rate changes on current and
    accumulated deferred income taxes to be reflected in the period
    in which the rate change was enacted. The liability method also
    requires that deferred tax assets be reduced by a valuation
    allowance unless it is more likely than not that the assets will
    be realized.
We may recognize a tax benefit from uncertain tax positions only
    if it is at least more likely than not that the tax position
    will be sustained upon examination by the taxing authorities,
    based on the technical merits of the position. The tax benefits
    recognized in the financial statements from such a position are
    measured based on the largest benefit that has a greater than
    50% likelihood of being realized upon settlement with the taxing
    authorities. Upon our adoption of the related standard, there
    was no liability for uncertain tax positions due to the fact
    that there were no identified tax benefits that were considered
    uncertain positions.
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We establish valuation allowances when necessary to reduce
    deferred tax assets to the amounts expected to be realized. We
    evaluate the need for, and the adequacy of, valuation allowances
    based on the expected realization of our deferred tax assets.
    The factors used to assess the likelihood of realization include
    historical earnings, our latest forecast of taxable income and
    available tax planning strategies that could be implemented to
    realize the net deferred tax assets.
Our effective tax rates are primarily affected by the amount of
    our taxable income or losses in the various taxing jurisdictions
    in which we operate, the amount of federal and state net
    operating losses and tax credits, the extent to which we can
    utilize these net operating loss carryforwards and tax credits
    and certain benefits related to stock option activity.
Revenue
    Recognition
We derive our revenue from three primary sources: our on demand
    software solutions; our on premise software solutions; and
    professional and other services. We commence revenue recognition
    when all of the following conditions are met:
•
there is persuasive evidence of an arrangement;
•
the solution and/or service has been provided to the customer;
•
the collection of the fees is probable; and
•
the amount of fees to be paid by the customer is fixed or
    determinable.
For multi-element arrangements that include multiple software
    solutions
and/or
services, we allocate arrangement consideration to all
    deliverables that have stand-alone value based on their relative
    selling prices. In such circumstances, we utilize the following
    hierarchy to determine the selling price to be used for
    allocating revenue to deliverables as follows:
•
Vendor specific objective evidence (VSOE), if
    available.
The price at which we sell the element
    in a separate stand-alone transaction;
•
Third-party evidence of selling price (TPE), if VSOE of
    selling price is not available.
Evidence from us
    or other companies of the value of a largely interchangeable
    element in a transaction; and
•
Estimated selling price, if neither VSOE nor TPE of selling
    price is available.
Our best estimate of the
    stand-alone selling price of an element in a transaction.
From time to time, we sell on demand software solutions with
    professional services. In such cases, as each element has stand
    alone value, we allocate arrangement consideration based on our
    estimated selling price of the on demand software solution and
    VSOE of the selling price of the professional services.
On Demand
    Revenue
Our on demand revenue consists of license and subscription fees,
    transaction fees related to certain of our software-enabled
    value-added services and commissions derived from us selling
    certain risk mitigation services.
License and subscription fees are comprised of a charge billed
    at the initial order date and monthly or annual subscription
    fees for accessing our on demand software solutions. The license
    fee billed at the initial order date is recognized as revenue on
    a straight-line basis over the longer of the contractual term or
    the period in which the customer is expected to benefit, which
    we consider to be four years. Recognition starts once the
    product has been activated. Revenue from monthly and annual
    subscription fees is recognized on a straight-line basis over
    the access period.
We recognize revenue from transaction fees derived from certain
    of our software-enabled value-added services as the related
    services are performed.
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We act as an insurance agent as a part of our risk mitigation
    services. We recognize the commissions related to these services
    ratably over the policy term.
On
    Premise Revenue
Revenue from our on premise software solutions is comprised of
    an annual term license, which includes maintenance and support.
    Customers can renew their annual term license for additional
    one-year terms at renewal price levels. We recognize the annual
    term license on a straight-line basis over the contract term.
Professional
    and Other Revenue
Professional & other revenue is recognized as the services
    are rendered for time and material contracts. Training revenues
    are recognized after the services are performed.
Deferred
    Revenue
Deferred revenue primarily consists of billings or payments
    received in advance of revenue recognition from our subscription
    service described above and is recognized as the revenue
    recognition criteria are met. For several of our solutions, we
    invoice our customers in annual, monthly or quarterly
    installments in advance of the commencement of the service
    period. Accordingly, the deferred revenue balance does not
    represent the total contract value of annual subscription
    agreements.
Cost
    of Revenue
Cost of revenue consists primarily of salaries and related
    personnel expenses of our operations and support personnel,
    including training and implementation services, expenses related
    to the operation of our data center, fees paid to third-party
    providers, allocations of facilities overhead costs and
    depreciation, amortization of acquired technologies and
    amortization of capitalized software.
Customer
    Acquisition Costs
The costs of obtaining new customers are expensed as incurred.
Stock-Based
    Compensation
We record stock-based compensation expense for options granted
    to employees based on the estimated fair value for the awards,
    using the Black-Scholes option pricing model on the date of
    grant. We recognize expense over the requisite service period,
    which is generally the vesting period, on a straight-line basis.
At each stock option grant date, we utilize peer group data to
    calculate our expected volatility. Expected volatility is based
    on historical and expected volatility rates of publicly traded
    peers. The expected life of each option grant is based on
    existing employee exercise patterns. The risk-free rate is based
    on the treasury yield rate with a maturity corresponding to the
    expected option life assumed at the grant date. We do not
    estimate forfeitures as the awards vest quarterly over the
    related service term.
Changes to the underlying assumptions may have a significant
    impact on the underlying value of the stock options, which could
    have a material impact on our consolidated financial statements.
We have granted stock options at exercise prices believed to be
    equal to or above the fair market value of our common stock, as
    of the grant date. Given the absence of any active market for
    our common stock, the fair market value of the common stock
    underlying stock options granted was determined by our
    compensation committee, with input from our management, and
    considered contemporaneous third-party valuations.
For the periods ended December 31, 2007, 2008 and 2009, we
    incurred expenses of $0.5 million and $1.5 million and
    $2.8 million, respectively, for stock-based compensation
    expense.
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Capitalized
    Product Development Costs
We capitalize specific product development costs, including
    costs to develop software products or the software components of
    our solutions to be marketed to external users, as well as
    software programs to be used solely to meet our internal needs.
    The costs incurred in the preliminary stages of development
    related to research, project planning, training, maintenance and
    general and administrative activities, and overhead costs are
    expensed as incurred. The costs of relatively minor upgrades and
    enhancements to the software are also expensed as incurred. Once
    an application has reached the development stage, internal and
    external costs incurred in the performance of application
    development stage activities, including costs of materials,
    services and payroll and payroll-related costs for employees,
    are capitalized, if direct and incremental, until the software
    is substantially complete and ready for its intended use.
    Capitalization ceases upon completion of all substantial
    testing. We also capitalize costs related to specific upgrades
    and enhancements when it is probable the expenditures will
    result in additional functionality. Capitalized costs are
    recorded as part of property and equipment. Internal use
    software is amortized on a straight-line basis over its
    estimated useful life, generally three years. We capitalized
    $1.5 million and $1.4 million of product development
    costs during the years ended December 31, 2008 and 2009,
    respectively, and recognized amortization expense of
    $0.8 million, $0.9 million and $1.3 million
    during the years ended December 31, 2007, 2008 and 2009,
    respectively, included as a component of cost of revenue.
    Unamortized product development cost was $2.9 million and
    $3.1 million at December 31, 2008 and 2009,
    respectively. Our management evaluates the useful lives of these
    assets on an annual basis and tests for impairment whenever
    events or changes in circumstances occur that could impact the
    recoverability of these assets. There were no impairments to
    internal use software during the years ended December 31,
    2007, 2008 or 2009.
Advertising
    Expenses
Advertising costs are expensed as incurred and totaled
    $3.4 million, $4.9 million and $5.9 million for
    the years ended December 31, 2007, 2008 and 2009,
    respectively.
Accrued
    Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the
    following:
December 31,
2008
2009
(in thousands)
Accrued compensation, payroll taxes, and benefits
$
5,264
$
5,034
Current portion of capital leases
2,852
1,540
Current portion of liabilities related to acquisitions
3,358
1,903
Other current liabilities
1,781
2,353
Total accrued expenses and other current liabilities
$
13,255
$
10,830
Other
    Long-Term Liabilities
Other long-term liabilities consisted of the following:
December 31,
2008
2009
(in thousands)
Capital leases, less current portion
$
2,377
$
589
Long-term liabilities related to acquisitions, less current
    portion
2,470
2,455
Other long-term liabilities
1,920
2,762
Total other long-term liabilities
$
6,767
$
5,806
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Recently
    Issued Accounting Standards
In September 2009, we adopted the FASB ASC. The FASB established
    the ASC as the single source of authoritative non-governmental
    GAAP, superseding various existing authoritative accounting
    pronouncements. It eliminates the previous GAAP hierarchy and
    establishes one level of authoritative GAAP. All other
    literature is considered non-authoritative. The FASB will not
    issue new standards in the form of Statements, FASB Staff
    Positions or Emerging Issues Task Force Abstracts. Instead, it
    will issue an Accounting Standards Update (ASU). The FASB will
    not consider ASUs as authoritative in their own right. ASUs will
    serve only to update the ASC, provide background information
    about the guidance and provide the bases for conclusions on the
    change(s) in the ASC.
In December 2007, the FASB issued guidance regarding business
    combinations, which significantly changes the principles and
    requirements for how the acquirer of a business recognizes and
    measures in its financial statements the identifiable assets
    acquired, the liabilities assumed, any non-controlling interest
    in the acquiree and the goodwill acquired. This statement is
    effective prospectively, except for certain retrospective
    adjustments to deferred tax balances, for fiscal years beginning
    after December 15, 2008. We applied these provisions to our
    2009 acquisitions which resulted in expensing related
    transaction costs and valuing contingent consideration at the
    date of acquisition. See Note 3.
In May 2009, the FASB issued an ASU that established general
    standards of accounting for and disclosure of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. Although there is new
    terminology, the standard is based on the same principles as
    those that currently exist in the auditing standards. The
    standard, which includes a new required disclosure of the date
    through which an entity has evaluated subsequent events, is
    effective for interim or annual periods ending after
    June 15, 2009. The adoption had no impact on our
    consolidated results of operations or financial position.
In September 2009, the FASB issued an ASU providing
    clarification for measuring the fair value of a liability when a
    quoted price in an active market for the identical liability is
    not available. It also clarifies that, when estimating the fair
    value of a liability, a reporting entity is not required to
    include a separate input or adjustment to other inputs relating
    to the existence of a restriction that prevents the transfer of
    the liability. This ASU is effective for fiscal periods
    beginning after August 27, 2009. We do not believe this
    update will have a material impact on our consolidated financial
    statements.
3.
Acquisitions
2007
    Acquisition
In April 2007, we acquired all of the issued and outstanding
    member interests of Multifamily Internet Ventures, LLC, the
    Irvine, California-based parent company of LeasingDesk LLC
    (LeasingDesk). We purchased LeasingDesk to be able to provide
    resident insurance programs to the multi-family housing
    industry. The LeasingDesk product line includes eRenterPlan, a
    liability policy that insures owners against financial loss due
    to resident-caused damage, or an enhanced version of the product
    which includes renter's insurance, providing additional
    coverage for resident personal belongings in the event of loss.
    The aggregate purchase price was $7.3 million, net of cash
    acquired, including cash payment of $7.1 million and
    acquisition-related costs of $0.2 million. In April 2008,
    we also paid $0.3 million in contingent consideration. The
    fair value of this contingent consideration was not included
    within total consideration at the acquisition date. This payment
    was recorded as additional goodwill. The purchase price of the
    acquisition was allocated to the net assets acquired based on
    the fair values at the date of the acquisition. Goodwill
    associated with the LeasingDesk acquisition is deductible for
    tax purposes. We included the operating results in our
    consolidated results of operations from the effective date of
    the acquisition.
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We allocated the purchase price for LeasingDesk as follows:
LeasingDesk
(in thousands)
Intangible assets:
Developed product technologies
$
116
Customer relationships
2,020
Non-competition agreements
120
Tradenames
420
Goodwill
5,241
Deferred revenue
(434
)
Net other assets (liabilities)
(135
)
Total purchase price, net of cash acquired
$
7,348
2008
    Acquisitions
In January 2008, we entered into an asset purchase agreement
    with WebRoomz, LLC (WebRoomz) to acquire technology for an on
    demand leasing system for the student and privatized military
    housing markets. WebRoomz is a web-based portal that allows
    tenants to match roommates and manages the entire leasing
    process using a document management system. The aggregate
    purchase price was $1.2 million, which included the payment
    of cash and acquisition related costs of $0.1 million. We
    included the operating results in our consolidated results of
    operations from the effective date of the acquisition.
In October 2008, we completed an acquisition of all of the
    issued and outstanding stock of OpsTechnology, Inc. (Ops). Ops
    offers three on demand products designed to improve efficiencies
    and reduce costs for multi-family companies. The aggregate
    purchase price at closing, net of acquired cash, was
    $21.6 million, which included a cash payment of
    $20.3 million, acquisition-related costs of
    $0.3 million and an additional cash payment of
    $2.7 million, which was paid on the first anniversary of
    the acquisition date. In addition, certain former owners of Ops
    earned 667,000 shares of our common stock by achieving
    certain revenue targets in 2009. This increased the overall
    consideration by $1.7 million. The fair value of this
    contingent consideration was not included within total
    consideration at the acquisition date. This payment was recorded
    as additional goodwill.
We made both of these acquisitions because of the immediate
    availability of product offerings that complemented our existing
    products. We accounted for the Webroomz and Ops acquisitions
    using the purchase method of accounting. Goodwill associated
    with the Webroomz acquisition is deductible for tax purposes;
    however, the goodwill associated with the Ops acquisition is not
    deductible for tax purposes.
We allocated the purchase prices for Webroomz and Ops as follows:
Webroomz
Ops
(in thousands)
Intangible assets:
Developed product technologies
$
228
$
2,457
Customer relationships
—
4,884
Vendor relationships
—
5,650
Tradenames
—
1,840
Goodwill
953
7,253
Deferred revenue
—
(619
)
Deferred tax liability
(644
)
Net other assets (liabilities)
—
809
Total purchase price, net of cash acquired
$
1,181
$
21,630
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2009
    Acquisitions
In September 2009, we purchased substantially all of the assets
    of Evergreen Solutions, Inc. (Evergreen). The acquisition of
    Evergreen further advanced our ability to offer open access to
    our products for clients and certified partners, and improves
    our ability to offer integration of our products and services
    with third-party solutions. The aggregate purchase price at
    closing was $0.9 million, which included a cash payment of
    $0.7 million and the fair value of contingent consideration
    of $0.2 million, which is payable in March 2010 and is
    based on the collection of pre-acquisition accounts receivable
    balances from customers. The $0.2 million is recorded
    within the current portion of acquisition related liabilities on
    the balance sheet. The customer relationships have useful lives
    of four years and are amortized in proportion to the estimated
    cash flows derived from the relationship. We have determined
    that the tradename has an indefinite life, as we anticipate
    keeping the tradename for the foreseeable future given its
    recognition in the marketplace. All direct acquisition costs
    were immaterial and expensed as incurred. We included the
    operating results of this acquisition in our consolidated
    results of operations from the effective date of the acquisition.
In September 2009, we purchased 100% of the outstanding stock of
    A.L. Wizard, Inc. (ALW). The acquisition of ALW immediately
    provided us with an application of on demand software and
    services for residential property management customers who
    manage senior living properties. The aggregate purchase price at
    closing was $2.8 million, net of cash acquired of
    $0.2 million, which included a cash payment of
    $2.5 million upon acquisition and additional cash payments
    of $0.5 million, half of which is due on the first
    anniversary of the acquisition date, with the remaining amount
    due 18 months from the acquisition date. The
    $0.5 million is recorded in acquisition-related liabilities
    on the balance sheet. We acquired deferred revenue as a
    contractual obligation, which was recorded at its assessed fair
    value of $0.5 million. The fair value was determined by
    incorporating the total cost to service the revenue and a normal
    profit margin for the industry. The customer relationships have
    useful lives of seven years and are amortized in proportion to
    the estimated cash flows derived from the relationship. Acquired
    developed product technologies have a useful life of three years
    and are amortized straight-line over the estimated useful life.
    We have determined that the tradename has an indefinite life, as
    we anticipate keeping the tradename for the foreseeable future
    given its recognition in the marketplace. All direct acquisition
    costs were immaterial and expensed as incurred. We included the
    operating results of this acquisition in our consolidated
    results from the effective date of the acquisition.
In November 2009, we purchased 100% of the outstanding stock of
    Propertyware, Inc. (Propertyware). The acquisition of
    Propertyware provided an entry into the single-family and small,
    centrally managed multi-family property markets. The acquisition
    also expanded the breadth of products Propertyware will make
    available to its residential property management customers. The
    aggregate purchase price at closing was $11.9 million, net
    of cash acquired, which included a cash payment of
    $9.0 million and additional cash payments of
    $0.5 million payable on the first anniversary of the
    acquisition date and $0.5 million payable 18 months
    after the acquisition date. The $1.0 million is recorded in
    acquisition-related liabilities on the balance sheet. In
    addition, the purchase price included the issuance of 1.0
    million restricted common shares which vest as certain revenue
    targets are achieved as defined in the purchase agreement. The
    fair value of these shares is estimated to be $2.2 million
    and is based on our management's estimate of the fair value
    of the stock and the probability of the achievement of these
    revenue targets. These shares have a maximum value of
    $2.5 million. We acquired deferred revenue as a contractual
    obligation, which was recorded at its assessed fair value of
    $0.5 million. The acquired intangibles were recorded at
    fair value based on assumptions made by us. The customer
    relationships have useful lives of ten years and are
    amortized in proportion to the estimated cash flows derived from
    the relationship. Acquired developed product technologies have a
    useful life of three years and are amortized straight-line
    over the estimated useful life. We have determined that the
    tradename has an indefinite life, as we anticipate keeping the
    tradename for the foreseeable future given its recognition in
    the marketplace. All direct acquisition costs were immaterial
    and expensed as incurred. We included the operating results of
    this acquisition in our consolidated results of operations from
    the effective date of the acquisition.
We made each of these acquisitions because of the immediate
    availability of product offerings that complemented our existing
    products. We accounted for the Evergreen, ALW and Propertyware
    acquisitions by allocating the total consideration, including
    the fair value of contingent consideration to the fair value of
    assets received and liabilities assumed. Goodwill associated
    with the Evergreen acquisition is deductible for tax
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purposes; however, the goodwill associated with the ALW and
    Propertyware acquisitions is not deductible for tax purposes.
We allocated the purchase prices for Evergreen, ALW and
    Propertyware as follows:
Evergreen
ALW
Propertyware
(in thousands)
Intangible assets:
Developed product technologies
$
—
$
1,192
$
7,427
Customer relationships
154
964
1,050
Tradenames
34
373
1,080
Goodwill
472
1,222
6,144
Deferred revenue
—
(520
)
(451
)
Deferred tax (liability)
—
(863
)
(3,407
)
Net other assets
225
415
78
Total purchase price, net of cash acquired
$
885
$
2,783
$
11,921
2010
    Acquisition
In February 2010, we acquired the assets of Domin-8 Enterprise
    Solutions, Inc. (Domin-8). The acquisition of these assets
    improved our ability to serve our multi-family clients with
    mixed portfolios that include smaller, centrally-managed
    apartment communities. The aggregate purchase price at closing
    was $14.0 million, which was paid upon acquisition of the
    assets. This acquisition was financed from the proceeds from the
    amended credit facility (See Note 6) and cash flow
    from operations. Due to the timing of this acquisition, the
    purchase price allocation was not complete as of the date of
    this filing due to the pending completion of the valuation of
    intangible assets. During 2009, approximately $0.7 million
    of transaction costs related to this acquisition were expensed
    as incurred.
Pro Forma
    Results of Acquisitions
The following table presents unaudited pro forma results of
    operations for 2007, 2008 and 2009 as if the aforementioned
    acquisitions, including Domin-8, had occurred at the beginning
    of each period presented. We prepared the pro forma financial
    information for the combined entities for comparative purposes
    only, and it is not indicative of what actual results would have
    been if the acquisitions had taken place at the beginning of the
    periods presented, or of future results.
Year Ended December 31,
2007
2008
2009
Pro Forma
Pro Forma
Pro Forma
(unaudited)
(unaudited)
(unaudited)
(in thousands)
Revenue:
On demand
$
73,012
$
108,295
$
134,896
On premise
17,605
16,673
13,035
Professional and other
13,723
15,041
12,080
Total revenue
$
104,340
$
140,009
$
160,011
Net (loss) income
(6,261
)
(16,667
)
28,486
Net (loss) income attributable to common stockholders:
Basic and diluted
(12,261
)
(24,116
)
10,814
Net (loss) income per share attributable to common stockholders:
Basic
$
(0.60
)
$
(0.87
)
$
0.23
Diluted
$
(0.60
)
$
(0.87
)
$
0.21
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The acquisitions in 2007, 2008, 2009 and 2010 were financed with
    cash flows from operations and financing activities.
Acquisition-Related
    Liabilities from Pre-2007 Acquisition
In connection with a 2002 acquisition, a liability was recorded
    for a $6.0 million earn-out payable to the seller, as
    payment was considered probable. At December 31, 2008 and
    2009, we owed $3.0 million and $2.5 million,
    respectively, in remaining earn-out fees relating to this
    acquisition, of which $2.5 million and $2.0 million
    are included in other long-term liabilities on the consolidated
    balance sheets at December 31, 2008 and 2009, respectively.
4. Property,
    Equipment and Software
Property, equipment and software consist of the following:
December 31,
2008
2009
(in thousands)
Leasehold improvements
$
5,069
$
6,039
Data processing and communications equipment
20,078
26,969
Furniture, fixtures, and other equipment
5,233
6,251
Software
19,005
21,807
49,385
61,066
Less: Accumulated depreciation and amortization
(30,248
)
(40,317
)
Property, equipment and software, net
$
19,137
$
20,749
Depreciation and amortization expense for property, equipment
    and software was $5.7 million, $9.2 million and
    $10.3 million for the periods ended December 31, 2007,
    2008 and 2009, respectively. This includes depreciation for
    assets purchased through capital leases.
5.
Goodwill
    and Other Intangible Assets
The change in the carrying amount of goodwill for the years
    ended December 31, 2008 and 2009, is as follows:
(in thousands)
Balance at December 31, 2007
$
9,194
Contingent consideration
449
Goodwill acquired
8,206
Balance at December 31, 2008
17,849
Contingent consideration
1,679
Goodwill acquired
7,838
Balance at December 31, 2009
$
27,366
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Other intangible assets consisted of the following at
    December 31, 2007, 2008 and 2009:
December 31, 2009
December 31, 2008
Amortization
Carrying
Accumulated
Carrying
Accumulated
Period
Amount
Amortization
Net
Amount
Amortization
Net
(in thousands)
Finite-lived intangible assets
Developed technologies
3 years
$
2,801
$
(412
)
$
2,389
$
11,421
$
(1,870
)
$
9,551
Customer relationships
1-10 years
7,539
(2,469
)
5,070
9,707
(4,301
)
5,406
Vendor relationships
7 years
5,650
(311
)
5,339
5,650
(1,500
)
4,150
Non-competition agreement
4-5 years
120
(53
)
67
120
(83
)
37
Total finite-lived intangible assets
16,110
(3,245
)
12,865
26,898
(7,754
)
19,144
Indefinite-lived intangible assets
Tradenames
2,260
—
2,260
3,747
—
3,747
Total intangible assets
$
18,370
$
(3,245
)
$
15,125
$
30,645
$
(7,754
)
$
22,891
There was no impairment of goodwill or trade names indicated
    during 2008 or 2009.
Amortization of finite-lived intangible assets was
    $1.5 million, $1.8 million and $4.5 million for
    2007, 2008 and 2009, respectively.
The following table sets forth the estimated amortization of
    intangible assets for the years ending December 31:
(in thousands)
Year ending December 31,
2010
$
6,486
2011
5,630
2012
3,967
2013
1,278
2014
1,028
6.
Debt
The following table summarizes the components of debt as of
    December 31:
December 31,
2008
2009
(in thousands)
Revolver
$
10,000
—
Term loan
12,650
$
33,688
Promissory notes issued to preferred stockholders
11,064
8,173
Secured promissory notes
10,000
10,000
$
43,714
$
51,861
In September 2009, we entered into a Credit Agreement (Credit
    Agreement) with two lenders, which provided for
    $35.0 million term loan and a $10.0 million revolving
    line of credit. A portion of the proceeds from the Credit
    Agreement was used to repay the balance outstanding under our
    prior credit agreement. The term loan and revolving line of
    credit bear interest at rates of the greater of 7.5%, a stated
    rate of 5.0% plus LIBOR, or a stated rate of 5.0% plus the
    bank's prime rate (or, if greater than 3.5%, the federal
    funds rate plus 0.5% or three month LIBOR plus 1.0%). As of
    December 31, 2009, the bank's prime rate was 3.25%.
    Principal payments on the term loan are due in quarterly
    installments of approximately $1.3 million until
    September 30, 2010, increasing to approximately
    $1.8 million until September 30, 2012, and increase to
    quarterly installments of approximately $1.9 million
    through March 31, 2013, with the balance due on
    June 30, 2013. The term loan and revolving line of credit
    were collateralized by all of our personal property and are
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subject to financial covenants, including meeting certain
    financial measures. As of December 31, 2009, we have not
    drawn down on the revolving line of credit, and we are in
    compliance with our debt covenants.
In February 2010, we entered into an amendment to the Credit
    Agreement. Under the terms of the amendment, the original term
    loan was increased by an additional $10.0 million. This
    amendment increased the balance outstanding on the term loan to
    $43.7 million. The related interest rates and maturity
    periods remained consistent with the terms of Credit Agreement.
In August 2008, we entered into a note purchase agreement with a
    separate lender. Under the terms of the agreement, we issued
    secured promissory notes (Notes) in the amount of
    $10.0 million with an interest rate of 13.75%, payable
    quarterly. The Notes are to be paid in full before
    August 1, 2013. The Notes are collateralized by all of our
    personal property and are subordinated to the Credit Agreement.
On December 30, 2008, in connection with a declaration of a
    dividend for all holders of our redeemable convertible preferred
    stock, we issued promissory notes to the holders of our
    convertible preferred stock (Stockholder Notes) in an aggregate
    principal amount of $11.1 million. The Stockholder Notes
    bear interest at a rate of 8% and are payable in 16 consecutive
    quarterly payments of principal and interest. We must meet
    certain debt to EBITDA levels and exceed minimum and average
    cash balance requirements in order to make the interest
    payments. Additionally, an amount equal to $0.9 million
    will be paid upon maturity to holders of the Stockholder Notes.
    We recognized $0.2 million of additional interest expense
    related to these notes in 2009. The payments may be deferred at
    the discretion of the board of directors.
After giving effect to the February 2010 amendment to the Credit
    Agreement, principal payments are due in the five years ending
    December 31 as follows:
(in thousands)
Year ending December 31,
2010
$
11,093
2011
11,837
2012
11,606
2013
27,325
Thereafter
—
7.
Redeemable
    Convertible Preferred Stock
At December 31, 2009, we had outstanding
    31,612,500 shares of Series A Redeemable Convertible
    Preferred Stock (Series A Preferred),
    20,200,000 shares of Series A1 Redeemable Convertible
    Preferred Stock (Series Al Preferred),
    3,250,000 shares of Series B Redeemable Convertible
    Preferred Stock (Series B Preferred) and
    3,025,000 shares of Series C Redeemable Convertible
    Preferred Stock (Series C Preferred). The Series C
    Preferred was issued on February 28, 2008, at a purchase
    price of $4.50 per share.
Each holder of preferred stock generally votes with our common
    stock and is entitled to the number of votes equal to the number
    of shares of common stock into which the preferred stock could
    be converted. Each share of preferred stock is convertible at
    the option of the holder at the liquidation preference, as
    defined below, divided by the original issue price. Conversion
    is mandatory upon written consent or affirmative vote at a
    meeting of the holders of a majority of the then outstanding
    shares of Series A Preferred, or, with such consent of the
    holders of the Series A Preferred, immediately prior to the
    closing of a qualified initial public offering (IPO), as defined
    in our certificate of incorporation.
The holders of Series A Preferred, Series A1 Preferred
    and Series B Preferred are entitled to receive cumulative
    cash dividends at the rate of 8% per annum of the original issue
    price if and when declared out of funds legally available by the
    board of directors. To the extent declared, the dividends are
    payable quarterly. Upon conversion, the holders may also elect
    to convert an amount equal to 62.5% of all then accrued and
    unpaid dividends into common stock at the applicable conversion
    rate. The holders of Series C Preferred are entitled to
    receive cumulative cash dividends at the rate of 8% per annum of
    the original issue price if and when declared by the board of
    directors, for the first 18 months after issuance and are
    entitled to
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noncumulative dividends thereafter. Dividends on Series C
    Preferred shares may not be paid until dividends have been
    declared and paid to holders of the Series A Preferred,
    Series A1 Preferred and Series B Preferred. On
    December 31, 2008, dividends of $27.9 million were
    declared by the board of directors. These dividends were
    distributed through the issuance of 16,294,894 common shares and
    subordinated notes of $11.1 million. On December 31,
    2009, dividends of $5.5 million were declared by the board
    of directors. These dividends were distributed through the
    issuance of 2,837,345 common shares and payment of
    $2.5 million in cash.
Upon any liquidation, dissolution, or winding up of the Company,
    the holders of the Series A Preferred, Series A1
    Preferred, Series B Preferred and Series C Preferred
    will be entitled to receive the original issue price plus all
    accrued and unpaid dividends (Liquidation Preference). The
    holders of the Series A Preferred, Series B Preferred
    and Series C Preferred are entitled to receive the full
    Liquidation Preference prior to any distribution to the holders
    of the Series A1 Preferred. Upon liquidation, after the
    holders of the Series A Preferred, Series B Preferred,
    Series C Preferred and Series A1 Preferred have been
    paid in full the Liquidation Preference, our remaining assets
    shall be distributed ratably among the holders of the common
    stock then outstanding and the holders of the Series A
    Preferred, Series A1 Preferred and Series B Preferred,
    on an as-converted basis, until the holders of such series of
    preferred stock have received an aggregate of three times the
    issue price per share of each such series of preferred stock
    (Participation Payment). After the holders of the Series A
    Preferred, Series A1 Preferred and Series B Preferred
    have received the Participation Payment, the holders of such
    series of preferred stock shall not have any further right as
    holders of preferred stock to participate in any distributions
    of our remaining assets, which shall be distributed ratably
    solely to the holders of common stock.
The Series A Preferred, Series B Preferred and
    Series C Preferred are redeemable at the option of the
    holders of the Series A Preferred beginning on
    December 31, 2011, if we have not completed a liquidation
    or qualified IPO. Upon election by the holders of the
    Series A Preferred to redeem the Series A Preferred,
    the holders of the Series B Preferred and Series C
    Preferred may elect to redeem such series of preferred stock. If
    the holders of the Series A Preferred, Series B
    Preferred and Series C Preferred elect to redeem, the
    redemption price will generally be paid over four years. The
    Series A1 Preferred is redeemable and will be paid over a
12-month
period once the holders of the Series A Preferred and, if
    applicable, the Series B Preferred and Series C
    Preferred have elected and been paid for a redemption. The
    redemption price is the greater of the original purchase price
    per share plus all accrued dividends or the fair market value
    per share as of the most recent fiscal quarter ended prior to
    the date that the initial redemption notice is sent to the
    Company. Based on the estimated fair value of the Company as of
    December 31, 2009, the redemption price of the
    Series A Preferred, Series A1 Preferred, Series B
    Preferred and Series C Preferred would exceed the original
    purchase price plus all accrued dividends as of the first
    redemption date by approximately $87.0 million. As of
    December 31, 2009, we have not provided for additional
    accretion of this amount for the Series A Preferred,
    Series A1 Preferred and Series B Preferred beyond the
    original purchase price plus accrued dividends, as we believe
    that it is probable that the Series A Preferred,
    Series A1 Preferred, Series B Preferred and
    Series C Preferred plus accrued dividends will be converted
    into common stock prior to the redemption date.
At December 31, 2011, if we have not completed a
    liquidation or qualified IPO, and the Series A Preferred
    holders have not given notice to redeem the Series A
    Preferred, one Series A Preferred stockholder, who holds
    5,813,000 shares, may require us to redeem all or any
    portion of its Series A Preferred shares. One hundred
    eighty days' notice is required, and we may issue common
    stock to make redemption payments if cash is not sufficient for
    the redemption payments and ongoing business requirements.
8.
Share
    Options and Warrants
Stock
    Option Plan
Our Amended and Restated 1998 Stock Incentive Plan (Stock
    Incentive Plan) provides for awards which may be granted in the
    form of incentive stock options, nonqualified stock options,
    restricted stock, stock appreciation rights and performance
    units with value based upon our performance. Stock options
    generally vest ratably over four years following the date of
    grant and expire ten years from the date of the grant. We also
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grant awards to our directors, generally in the form of stock
    options, in accordance with the Board of Directors Policy (Board
    Plan). The options generally vest immediately and have a
    four-year term. Should a director leave the board, we have the
    right to repurchase shares as if the options vested on a pro
    rata basis. In 2009, we began issuing options that vest over
    four years with 75% vesting ratably over 15 quarters and
    the remaining 25% vesting on the 16th quarter. All outstanding
    options were granted at exercise prices equal to or exceeding
    our estimate of the fair market value of our common stock at the
    date of grant. There were 150,000 outstanding director options
    at December 31, 2009. In addition, there were 522,348
    shares of restricted stock that were issued and outstanding
    under the Stock Incentive Plan at December 31, 2009
The following table summarizes transactions under our Stock
    Incentive Plan and Board Plan:
Weighted
Range of
Average
Number of
Exercise
Exercise
Shares
Prices
Price
Balance at December 31, 2006
9,467,719
$
1.00 - $1.25
$
1.20
Granted
2,233,500
1.50 - 2.75
1.84
Exercised
(968,782
)
1.00
1.00
Forfeited/cancelled
(708,592
)
1.00 - 1.75
1.05
Balance at December 31, 2007
10,023,845
1.00 - 2.75
1.21
Granted
3,974,000
3.00 - 3.50
3.27
Exercised
(664,908
)
1.00 - 3.50
1.16
Forfeited/cancelled
(863,811
)
1.00 - 3.50
1.75
Balance at December 31, 2008
12,469,127
1.00 - 3.50
1.83
Granted
4,568,000
3.00
3.00
Exercised
(355,783
)
1.00 - 3.00
1.52
Forfeited/cancelled
(823,888
)
1.00 - 3.50
2.09
Balance at December 31, 2009
15,857,456
1.00 - 3.50
2.16
At December 31, 2009, there were approximately
    732,000 shares available for future grants under the Stock
    Incentive Plan and Board Plan.
The weighted average grant-date fair value of options granted
    during 2007, 2008 and 2009 was $1.72, $2.90 and $2.63,
    respectively. The aggregate intrinsic value of stock options
    exercised in 2007, 2008 and 2009 was $0.9 million,
    $0.6 million and $0.4 million, respectively. The
    aggregate intrinsic value of outstanding stock options was
    $12.9 million as of December 31, 2009. The aggregate
    intrinsic value of options exercisable was $12.1 million as
    of December 31, 2009.
The following table summarizes outstanding stock options at
    December 31, 2009, that are vested and expected to vest,
    non-vested, and stock options that are currently exercisable.
Options Outstanding
Fully Vested
and
Expected to
Vest
Non-Vested
Exercisable
Number of shares outstanding
15,294,275
7,155,839
8,701,617
Weighted average remaining contractual life
7.20
9.02
5.83
Weighted average price per share
$
2.13
$
2.94
$
1.52
As of December 31, 2009, the total future compensation cost
    related to nonvested stock options to be recognized in the
    consolidated statement of operations was $6.9 million with
    a weighted average period over which these awards are expected
    to be recognized of 2.4 years. Of that total,
    $2.4 million, $2.2 million, $1.7 million and
    $0.6 million will be recognized in 2010, 2011, 2012 and
    2013, respectively.
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The total number of stock options that vested during 2009 was
    2,980,120, and total fair value was $5.9 million.
In February 2010, we granted 1,721,000 options to purchase
    shares of common stock. The exercise price for these options was
    $3.75 per share.
Stock-Based
    Compensation Assumptions
We have utilized the Black-Scholes option pricing model as the
    appropriate model for determining the fair value of stock-based
    awards. The awards granted in 2007, 2008, and 2009 were valued
    using the following assumptions:
Risk-free interest rates
1.5-4.8
%
Expected option life (in years)
6
Dividend yield
0
%
Expected volatility
50-60
%
Risk-free interest rate.
This is the average
    U.S. Treasury rate (having a term that most closely
    approximates the expected life of the option) for the period in
    which the option was granted.
Expected life of the options.
This is the period of time
    that the options granted are expected to remain outstanding.
Dividend yield.
We have never declared or paid dividends
    on its common stock and do not anticipate paying dividends in
    the foreseeable future.
Expected volatility.
Volatility is a measure of the
    amount by which a financial variable such as a share price has
    fluctuated (historical volatility) or is expected to fluctuate
    (expected volatility) during a period. The Company was privately
    held during the periods presented and arrived at a volatility
    rate after considering historical and expected volatility rates
    of publicly traded peers.
Stock
    Purchase Warrants
In December 2005, we issued two-year fully exercisable warrants
    to purchase 175,000 shares of common stock at $1.00 per
    share to two significant customers. The estimated fair value of
    the warrants was de minimis. In December 2007, the warrants were
    exercised.
In July 2007, we issued one-year fully exercisable warrants to
    purchase 150,000 shares of common stock at $1.75 per share
    to a customer. The estimated fair value of the warrants was
    $47,000. The value of the warrants was recorded as a discount to
    unearned revenue and was amortized into revenue over the period
    of expected benefit with an order signed at that time. In June
    2008, the warrants were exercised.
In connection with the issuance of the Series A Preferred,
    we issued to current and prior stockholders stock purchase
    warrants representing the right to purchase an aggregate of
    9,156,000 shares of our common stock, at an exercise price
    of $0.001 per share. These warrants contained a net-cash
    settlement provision and accordingly were recorded as a
    liability; however, due to various measures determining
    exercisability and vesting, the fair value of this liability was
    nominal. In February 2008, these warrants were amended to be
    fully vested at the time of the issuance of the Series C
    Preferred. In 2008, stockholders exercised warrants to purchase
    9,106,000 shares of common stock, and the remaining 50,000
    warrants expired.
We issued a five-year warrant to purchase 450,000 shares of
    common stock at $0.01 per share in connection with a 2004
    acquisition. As of December 31, 2008 and 2009, 400,000 and
    zero shares, respectively, remained outstanding in connection
    with this warrant.
We issued a five-year warrant to purchase 50,000 and
    25,000 shares of common stock at $1.00 per share in
    connection with 2004 and 2005 amendments to our prior credit
    facility. In May 2009, the warrant to purchase
    50,000 shares was automatically net exercised for 31,617
    shares of common stock. As of December 31, 2009, the
    Company has 25,000 warrants outstanding. These warrants were
    automatically net exercised into common stock in March 2010.
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9.
Commitments
    and Contingencies
Lease
    Commitments
We lease office space and equipment under capital and operating
    leases that expire at various times through 2016. We recognize
    lease expense for these leases on a straight-line basis over the
    lease terms.
The assets under capital lease are as follows:
December 31,
2009
(in thousands)
Data processing and communications equipment
$
5,679
Software
5,903
11,582
Less: Accumulated depreciation and amortization
(6,411
)
Assets under capital lease, net
$
5,171
Aggregate annual rental commitments at December 31, 2009,
    under operating leases with initial or remaining non-cancelable
    lease terms greater than one year and capital leases are as
    follows:
Operating
Capital Leases
Leases
(in thousands)
2010
$
1,670
$
4,922
2011
538
4,372
2012
65
3,825
2013
—
3,809
2014
—
3,782
Thereafter
—
6,341
Total Minimum lease payments
$
2,273
$
27,051
Less amount representing average interest at 9.1%
(144
)
2,129
Less current portion
(1,540
)
Long-term portion
$
589
Rent expense was $3.1 million, $4.5 million and
    $5.1 million for the years ended December 31, 2007,
    2008 and 2009, respectively.
Guarantor
    Arrangements
We have agreements whereby we indemnify our officers and
    directors for certain events or occurrences while the officer or
    director is or was serving at our request in such capacity. The
    term of the indemnification period is for the officer or
    director's lifetime. The maximum potential amount of future
    payments we could be required to make under these
    indemnification agreements is unlimited; however, we have a
    director and officer insurance policy that limits our exposure
    and enables us to recover a portion of any future amounts paid.
    As a result of our insurance policy coverage, we believe the
    estimated fair value of these indemnification agreements is
    minimal. Accordingly, we had no liabilities recorded for these
    agreements as of December 31, 2008 and 2009.
In the ordinary course of our business, we enter into standard
    indemnification provisions in our agreements with our customers.
    Pursuant to these provisions, we indemnify our customers for
    losses suffered or incurred in connection with third-party
    claims that our products infringed upon any U.S. patent,
    copyright, trademark or other intellectual property right. Where
    applicable, we generally limit such infringement indemnities to
    those claims directed solely to our products and not in
    combination with other software or
F-24
Table of Contents
products. With respect to our products, we also generally
    reserve the right to resolve such claims by designing a
    non-infringing alternative, by obtaining a license on reasonable
    terms, or by terminating our relationship with the customer and
    refunding the customer's fees.
The potential amount of future payments to defend lawsuits or
    settle indemnified claims under these indemnification provisions
    is unlimited in certain agreements; however, we believe the
    estimated fair value of these indemnity provisions is minimal,
    and, accordingly, we had no liabilities recorded for these
    agreements as of December 31, 2008 and 2009.
Litigation
We are subject to litigation and claims arising in the ordinary
    course of business. Our management believes that the probable
    resolution of any such litigation will not materially affect our
    consolidated financial position and results of operations.
10.
Funds
    Held for Others
In connection with our payment processing services, we collect
    tenant funds and subsequently remit these tenant funds to our
    customers after varying holding periods. These funds are settled
    through our Originating Depository Financial Institution (ODFI)
    custodial account at a major bank. As part of this processing,
    we earn interest from the time the money is collected from the
    tenants until the time of remittance to our customers'
    accounts. This interest generated from the ODFI custodial
    account balances is included in revenue and was
    $0.2 million, $0.1 million and $0.0 in 2007, 2008, and
    2009, respectively.
The ODFI custodial account balances were $12.7 million and
    $13.0 million at December 31, 2008 and 2009,
    respectively. The ODFI custodial account balances are included
    in our consolidated balance sheets as restricted cash. The
    corresponding liability for these custodial balances is
    reflected as customer deposits. In connection with the timing of
    our payment processing services, we are exposed to credit risk
    in the event of nonperformance by other parties, such as
    returned checks. We utilize credit analysis and other controls
    to manage the credit risk exposure. We have not experienced any
    credit losses to date. Any expected losses are included in our
    accounts receivable allowances on our consolidated balance sheet.
In January 2007, we established a wholly owned subsidiary,
    RealPage Payment Processing Services, Inc. (RPPS), a
    bankruptcy-remote, special-purpose entity, and transferred the
    ODFI custodial accounts and all ACH transaction processing
    responsibilities to RPPS. We provide processing and
    administrative services to RPPS through a services agreement.
The obligations of RPPS under the ODFI custodial account
    agreement are guaranteed by us.
In connection with our resident insurance products, we collect
    premiums from policy holders and subsequently remit the premium,
    net of our commission, to the underwriter. We maintain separate
    accounts for these transactions. We had $1.5 million and
    $1.9 million in restricted cash for years ended
    December 31, 2008 and 2009, respectively and
    $1.5 million and $2.2 million in customer deposits
    related to these insurance products for years ended
    December 31, 2008 and 2009, respectively.
11.
Net
    Income (Loss) Per Share
Net income (loss) per share is presented in conformity with the
    two-class method required for participating securities. Holders
    of Series A Preferred, Series A1 Preferred,
    Series B Preferred and Series C Preferred
    are each entitled to receive 8% per annum cumulative dividends,
    payable prior and in preference to any dividends on any other
    shares of our capital stock. In the event a dividend is paid on
    common stock, holders of Series A Preferred,
    Series A1 Preferred, Series B Preferred and
    Series C Preferred are entitled to a proportionate share of
    any such dividend as if they were holders of common shares (on
    an as-if converted basis). Holders of Series A Preferred,
    Series A1 Preferred, Series B Preferred and
    Series C Preferred do not share in loss of the Company.
F-25
Table of Contents
Under the two-class method, basic net income per share
    attributable to common stockholders is computed by dividing the
    net income attributable to common stockholders by the weighted
    average number of common shares outstanding during the period.
    Net income attributable to common stockholders is determined by
    allocating undistributed earnings, calculated as net income less
    current period Series A Preferred,
    Series A1 Preferred, Series B Preferred and
    Series C Preferred cumulative dividends, between the
    holders of common stock and Series A Preferred,
    Series A1 Preferred, Series B Preferred and
    Series C Preferred. Diluted net income per share
    attributable to common stockholders is computed by using the
    weighted average number of common shares outstanding, including
    potential dilutive shares of common stock assuming the dilutive
    effect of outstanding stock options using the treasury stock
    method.
Pro forma basic and diluted net income per share were computed
    to give effect to the conversion of the
    Series A Preferred, Series A1 Preferred,
    Series B Preferred and Series C Preferred
    using the as-if converted method into common stock as though the
    conversion had occurred as of January 1, 2009, or original
    date of issuance, if later.
F-26
Table of Contents
The following table presents the calculation of basic and
    diluted net income per share attributable to common stockholders
    and pro forma basic and diluted net income per share:
Year Ended December 31,
2007
2008
2009
(in thousands, except per share amounts)
Numerator:
Net (loss) income
$
(3,143
)
$
(3,209
)
$
28,429
8% cumulative dividends on participating preferred stock
(6,000
)
(7,449
)
(5,521
)
Undistributed earnings allocated to participating preferred stock
—
—
(12,151
)
Net (loss) income attributable to common
    stockholders — basic and diluted
$
(9,143
)
$
(10,658
)
$
10,757
Denominator:
Basic:
Weighted average common shares used in computing basic net
    income (loss) per share
20,446
27,773
47,869
Diluted:
Weighted average common shares used in computing basic net
    income (loss) per share
20,446
27,773
47,869
Add weighted average effect of dilutive securities:
Stock options
—
—
3,063
Stock warrants
—
—
93
Weighted average common shares used in computing diluted net
    income (loss) per share
20,446
27,773
51,025
Net (loss) income per common share:
Basic
$
(0.45
)
$
(0.38
)
$
0.22
Diluted
$
(0.45
)
$
(0.38
)
$
0.21
Shares used in computing pro forma net income per share
    (unaudited):
Basic:
Basic weighted average common shares from above
47,869
Add assumed conversion of convertible preferred stock
58,088
Shares used in computing pro forma basic net income per share
105,957
Diluted:
Diluted weighted average common shares from above
51,025
Add conversion of Series A, Series A1, Series B,
    Series C convertible preferred stock excluded under the two
    class method
58,088
Shares used in computing pro forma diluted net income per share
109,113
Pro forma net income per share (unaudited):
Basic
$
0.27
Diluted
$
0.26
12.
Related
    Party Transactions
We purchased transportation services of approximately $87,000,
    $34,000, and $44,000 in 2007, 2008 and 2009 from a significant
    stockholder and company controlled by our Chief Executive
    Officer.
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Table of Contents
13.
Income
    Taxes
The provision for income taxes consists of the following as of
    December 31:
Year Ended December 31,
2007
2008
2009
(in thousands)
Current:
Federal
—
—
—
State
—
$
197
$
231
Foreign
—
17
49
Total current taxes
—
214
280
Deferred:
Federal
—
489
(25,147
)
State
—
—
(1,161
)
Foreign
—
—
—
Total deferred taxes
—
489
(26,308
)
Total income tax provision (benefit)
—
$
703
$
(26,028
)
The reconciliation of our income tax benefit computed at the
    U.S. federal statutory tax rate to the actual income tax
    expense is as follows:
Year Ended December 31,
2007
2008
2009
(in thousands)
Expense derived by applying the Federal income tax rate to
    (loss) income before taxes
$
(1,068
)
$
(872
)
$
837
State income tax, net of federal benefit
—
197
152
Foreign income tax
—
17
(50
)
Change in valuation allowance
—
—
(27,036
)
Nondeductible expenses
143
185
166
Losses not benefitted
1,046
567
—
Other
(121
)
609
(97
)
—
$
703
$
(26,028
)
Significant components of our deferred tax assets and
    liabilities are as follows:
December 31,
2008
2009
(in thousands)
Deferred tax assets:
Property, equipment, and software
$
597
—
Reserves and accrued liabilities
6,101
$
8,228
Net operating loss carryforwards
25,579
24,270
Total deferred tax assets
32,277
32,498
Deferred tax liabilities
Property, equipment, and software
—
(1,868
)
Other
(235
)
(476
)
Intangible assets
(1,611
)
(4,714
)
Net deferred tax assets before valuation allowance
$
30,431
$
25,440
Valuation allowance
(31,563
)
(4,527
)
Net deferred tax assets/(liabilities)
$
(1,132
)
$
20,913
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Table of Contents
Our management periodically evaluates the realizability of the
    deferred tax assets and recognizes the tax benefit when it is
    determined they are realizable. At such time, if it is
    determined that it is more likely than not that the deferred tax
    assets are realizable, the valuation allowance will be adjusted.
    In December 2009, based on current year income, and our
    projections of future income, we concluded it was more likely
    than not that certain of our deferred tax assets would be
    realizable, and therefore the valuation allowance was reduced by
    $27.0 million.
Our federal net operating loss carryforwards of
    $67.2 million will begin to expire in 2020. A change in
    ownership, as defined in Section 382 of the Internal
    Revenue Code, may limit utilization of the federal net operating
    loss and research and development credit carryforwards.
A cumulative change in ownership among material shareholders, as
    defined in Section 382 of the Internal Revenue Code during a
    three-year period, may limit utilization of the federal net
    operating loss and research and development credit
    carryforwards. Based on available information, the Company
    believes it is not currently subject the Section 382 limitation.
    If triggered under current conditions, the timing of utilization
    of our net operating loss may be impacted.
Uncertain
    Tax Positions
Effective January 1, 2007, we adopted a new accounting
    standard relating to the accounting for uncertain tax positions.
    We recorded no additional tax liability as a result of the
    adoption of this standard and no adjustments to the
    January 1, 2007 balance of retained deficit, and therefore
    no accrued interest and penalties recognized as of
    January 1, 2007. At December 31, 2008 and 2009, we had
    no unrecognized tax benefits. Our policy is to include interest
    and penalties related to unrecognized tax benefits in income tax
    expense, and as of December 31, 2008 and December 31,
    2009, there were no accrued interest and penalties.
We file consolidated and separate tax returns in the
    U.S. federal jurisdiction and in several state
    jurisdictions and one foreign jurisdiction. We are no longer
    subject to U.S. federal income tax examinations for years
    before 2006 and are no longer subject to state and local income
    tax examinations by tax authorities for years before 2005. We
    are not currently under audit for federal, state or any foreign
    jurisdictions.
14.
Employee
    Benefit Plans
In 1998, our board of directors approved a defined contribution
    plan that provides retirement benefits under the provisions of
    Selection 401(k) of the Internal Revenue Code. Our 401(k) Plan
    (Plan) covers substantially all employees who meet a minimum
    service requirement. Under the Plan, we can elect to make
    voluntary contributions. Contributions of $0.2 million,
    $0.3 million and $0.4 million were made by us in 2007,
    2008 and 2009, respectively.
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Table of Contents
Table of Contents
PART II
Information
    Not Required in Prospectus
Item 13.
Other
    Expenses of Issuance and Distribution
The following table presents the costs and expenses, other than
    underwriting discounts and commissions, payable by us in
    connection with the sale of common stock being registered. All
    amounts are estimates except the SEC registration fee and the
    FINRA filing fees.
SEC Registration fee
$
10,695.00
FINRA filing fee
15,500.00
NASDAQ Global Market listing fee
*
Printing and engraving expenses
*
Legal fees and expenses
*
Accounting fees and expenses
*
Blue sky fees and expenses
*
Custodian and transfer agent fees
*
Miscellaneous fees and expenses
*
Total
$
*
*
To be filed by amendment.
Item 14.
Indemnification
    of Directors and Officers
Section 145 of the Delaware General Corporation Law
    authorizes a corporation's board of directors to grant, and
    authorizes a court to award, indemnity to officers, directors
    and other corporate agents.
As permitted by Section 102(b)(7) of the Delaware General
    Corporation Law, the registrant's amended and restated
    certificate of incorporation to be effective upon the completion
    of this offering includes provisions that eliminate the personal
    liability of its directors and officers for monetary damages for
    a breach of their fiduciary duty as directors and officers.
In addition, as permitted by Section 145 of the Delaware
    General Corporation Law, the registrant's amended and
    restated bylaws to be effective upon the completion of this
    offering provide that:
•
The registrant shall indemnify its directors and officers for
    serving the registrant in those capacities or for serving other
    business enterprises at the registrant's request, to the
    fullest extent permitted by Delaware law. Delaware law provides
    that a corporation may indemnify such person if such person
    acted in good faith and in a manner such person reasonably
    believed to be in or not opposed to the best interests of the
    registrant and, with respect to any criminal proceeding, had no
    reasonable cause to believe such person's conduct was
    unlawful.
•
The registrant may, in its discretion, indemnify employees and
    agents in those circumstances in which indemnification is not
    required by law.
•
The registrant will be required to advance expenses, as
    incurred, to its directors and officers in connection with
    defending a proceeding, except that such director or officer
    shall undertake to repay such advances if it is ultimately
    determined that such person is not entitled to indemnification.
•
The registrant will not be obligated pursuant to the bylaws to
    indemnify a person with respect to proceedings initiated by that
    person, except with respect to proceedings authorized by the
    registrant's board of directors. The rights conferred in
    the bylaws are not exclusive, and the registrant is authorized
    to enter into indemnification agreements with its directors,
    officers, employees and agents and to obtain insurance to
    indemnify such persons.
II-1
Table of Contents
•
The registrant may not retroactively amend the bylaw provisions
    to reduce its indemnification obligations to directors,
    officers, employees and agents.
Prior to the completion of this offering, the registrant plans
    to enter into separate indemnification agreements with each of
    its directors and executive officers that provide the maximum
    indemnity allowed to directors and executive officers by
    Section 145 of the Delaware General Corporation Law and
    also provides for certain additional procedural protections. The
    registrant also maintains insurance to insure directors and
    officers against certain liabilities.
These indemnification provisions and the indemnification
    agreements to be entered into between the registrant and its
    officers and directors may be sufficiently broad to permit
    indemnification of the registrant's officers and directors
    for liabilities (including reimbursement of expenses incurred)
    arising under the Securities Act.
The underwriting agreement filed as Exhibit 1.1 to this
    registration statement provides for indemnification by the
    underwriters of the registrant and its officers and directors
    for certain liabilities arising under the Securities Act and
    otherwise.
Item 15.
Recent
    Sales of Unregistered Securities
1. From April 29, 2007 through April 29, 2010,
    the registrant granted to its employees and consultants options
    to purchase an aggregate of 11,076,500 shares of its common
    stock under the registrant's 1998 Stock Incentive Plan at
    prices ranging from $1.50 per share to $3.75 per share for an
    aggregate purchase price of $34,907,625.00.
2. From April 29, 2007 through April 29, 2010,
    the registrant sold and issued to its employees and consultants
    an aggregate of 1,020,598 shares of its common stock
    pursuant to option exercises under the registrant's 1998
    Stock Incentive Plan at prices ranging from $1.00 per share to
    $3.50 per share for an aggregate purchase price of $1,239,620.75.
3. From April 29, 2007 through April 29, 2010,
    the registrant granted to its directors options to purchase an
    aggregate of 320,000 shares of our common stock at prices
    ranging from $3.00 per share to $3.75 per share for an
    aggregate purchase price of $1,050,000.00.
4. From April 29, 2007 through April 29, 2010,
    the registrant sold and issued to its directors an aggregate of
    1,100,000 shares of its common stock pursuant to option
    exercises at prices ranging from $1.00 per share to $3.00 per
    share for an aggregate purchase price of $1,200,000.00.
5. On February 22, 2008, the registrant issued and
    sold to seven accredited investors an aggregate of
    3,025,000 shares of our Series C Convertible Preferred
    Stock at a price of $4.50 per share for an aggregate price of
    $13,612,500.
6. From April 29, 2007 through April 29, 2010,
    the registrant sold and issued to 11 accredited investors an
    aggregate of 9,930,448 shares of its common stock pursuant to
    warrant exercises at prices ranging from $0.001 per share to
    $1.75 per share for an aggregate purchase price of $500,304.25.
7. On October 21, 2009, the registrant issued
    666,667 shares of its common stock to five of its current
    or former employees and consultants as compensation for the
    achievement of certain performance milestones agreed to in
    connection with the registrant's acquisition of
    OpsTechnology, Inc.
8. On October 28, 2009, the registrant awarded and
    issued 22,348 restricted shares of its common stock to employees
    under the registrant's 1998 Stock Incentive Plan in
    connection with our acquisition of Propertyware, Inc.
9. On October 28, 2009, the registrant awarded and
    issued 500,000 restricted shares of its common stock to
    employees who are also accredited investors under the
    registrant's 1998 Stock Incentive Plan in connection with
    our acquisition of Propertyware, Inc.
II-2
Table of Contents
10. On October 28, 2009, the registrant issued 977,652
    restricted shares of its common stock to nine accredited
    investors in partial consideration of the registrant's
    acquisition of Propertyware, Inc.
11. On December 31, 2008, the registrant issued an
    aggregate of 16,294,894 shares of its common stock to
    holders of its convertible preferred stock in partial payment of
    cumulative dividends accrued on the convertible preferred stock
    through such date.
12. On December 31, 2009, the registrant issued an
    aggregate of 2,837,345 shares of its common stock to
    holders of its convertible preferred stock in partial payment of
    cumulative dividends accrued on the convertible preferred stock
    through such date.
13. On April 1, 2010, the registrant awarded and
    issued an aggregate of 26,666 restricted shares of its common
    stock to the registrant's independent directors in
    accordance with the registrant's independent director
    compensation plan.
14. On April 23, 2010, the registrant issued an
    aggregate of 685,276 shares of its common stock to holders
    of its Series A Convertible Preferred Stock, Series A1
    Convertible Preferred Stock and Series B Convertible
    Preferred Stock in partial payment of cumulative dividends
    accrued on such series of convertible preferred stock through
    March 31, 2010.
None of the foregoing transactions involved any underwriters,
    underwriting discounts or commissions, or any public offering,
    and the registrant believes the transactions were exempt from
    registration under the Securities Act in reliance on
    Rule 701 promulgated under the Securities Act as
    transactions pursuant to compensatory benefit plans and
    contracts relating to compensation or in reliance on
    Section 4(2) of the Securities Act as transactions by an
    issuer not involving any public offering. The recipients of
    securities in each such transaction represented their intention
    to acquire the securities for investment only and not with a
    view to or for sale in connection with any distribution thereof
    and appropriate legends were affixed to the stock certificates
    and option agreements issued in such transactions. All
    recipients had adequate access, through their relationships with
    us, to information about us.
Item 16.
Exhibits
    and Financial Statement Schedules
(a)
Exhibits
Exhibit
Number
Description
1
.1*
Form of Underwriting Agreement
3
.1
Amended and Restated Certificate of Incorporation of the
    Registrant currently in effect
3
.2*
Form of Amended and Restated Certificate of Incorporation of the
    Registrant to be effective upon the completion of this offering
3
.3
Bylaws of the Registrant in effect before the completion of this
    offering
3
.4*
Form of Amended and Restated Bylaws of the Registrant to be
    effective upon the completion of this offering
4
.1*
Form of Common Stock certificate of the Registrant
4
.2
Shareholders' Agreement among the Registrant and certain
    stockholders, dated December 1, 1998, as amended July 16, 1999
    and November 3, 2000
4
.3
Second Amended and Restated Registration Rights Agreement among
    the Registrant and certain stockholders, dated February 22, 2008
4
.4
Fourth Amended and Restated Shareholders Agreement among the
    Registrant and certain stockholders, dated March 17, 2010
4
.5
Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III, L.P. regarding management rights, dated
    December 14, 2005
4
.6
Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III-A, L.P. regarding management rights, dated
    December 14, 2005
5
.1*
Opinion of Wilson Sonsini Goodrich & Rosati, Professional
    Corporation
10
.1
Form of Indemnification Agreement to be entered into between the
    Registrant and each of its directors and officers
II-3
Table of Contents
Exhibit
Number
Description
10
.2+
Amended and Restated 1998 Stock Incentive Plan
10
.2A+
Form of Notice of Stock Option Grant
10
.2B+
Form of Notice of Grant of Restricted Shares
10
.2C+
Form of Non-Qualified Stock Option Agreement (Second Series)
10
.2D+
Form of Non-Qualified Stock Option Agreement
10
.3+
Form of Director's Nonqualified Stock Option Agreement
10
.4+
2010 Equity Incentive Plan
10
.5+
Form of 2009 Management Incentive Plan
10
.6+
Form of 2010 Management Incentive Plan
10
.7+
Stand-Alone Stock Option Agreement between the Registrant and
    Peter Gyenes, dated February 25, 2010
10
.8+
Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated October 27, 2005
10
.9+
Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated February 26, 2009
10
.10+
Notice of Stock Option Grant under the Amended and Restated 1998
    Stock Incentive Plan between the Registrant and Timothy J.
    Barker dated February 25, 2010
10
.11+
Employment Agreement between the Registrant and Stephen T. Winn,
    dated December 30, 2003
10
.12+
Employment Agreement between the Registrant and Timothy J.
    Barker, dated October 31, 2005
10
.13+
Amendment to Employment Agreement between the Registrant and
    Timothy J. Barker, dated January 1, 2010
10
.14+
Employment Agreement between the Registrant and William E.
    Van Valkenberg, dated September 24, 2009
10
.15+
Master Agreement for Consulting Services between the Registrant
    and William E. Van Valkenberg, dated June 28, 2009
10
.16+
Employment Agreement between the Registrant and Ashley Chaffin
    Glover, dated March 3, 2005
10
.17+
Employment Agreement between Multifamily Internet Ventures, LLC
    and Dirk D. Wakeham, dated April 12, 2007 and amended
    April 12, 2007
10
.18
Credit Agreement among the Registrant, Wells Fargo Foothill, LLC
    and Comerica Bank dated, September 3, 2009
10
.19
Security Agreement among the Registrant, OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September 3, 2009
10
.20
General Continuing Guaranty among OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September 3, 2009
10
.21
Waiver and First Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica Bank, dated
    September 16, 2009
10
.22
General Continuing Guaranty between A.L. Wizard, Inc. and Wells
    Fargo Foothill, LLC, dated September 25, 2009
10
.23
Waiver and Second Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica bank, dated
    October 15, 2009
10
.24
General Continuing Guarantee between Propertyware, Inc. and
    Wells Fargo Foothill, LLC, dated November 6, 2009
10
.25
Supplement No. 2 to Security Agreement between
    Propertyware, Inc. and Wells Fargo Foothill, LLC, dated
    November 6, 2009
10
.26
Consent and Third Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC, and Comerica Bank dated
    December 23, 2009
10
.27
Waiver, Consent and Fourth Amendment to Credit Agreement among
    the Registrant, Wells Fargo Capital Finance, LLC (f/k/a Wells
    Fargo Foothill, LLC) and Comerica Bank dated February 10,
    2010
10
.28
General Security Agreement between 43642 Yukon, Inc. and
    Wells Fargo Capital Finance, LLC (f/k/a Wells Fargo Foothill,
    LLC), dated February 10, 2010
II-4
Table of Contents
Exhibit
Number
Description
10
.29
Guarantee between 43642 Yukon, Inc. and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February 10, 2010
10
.30
Share Pledge between the Registrant and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February 10, 2010
10
.31
Note Purchase Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August 1, 2008
10
.32
Security Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August 1, 2008
10
.33
Form of Secured Promissory Note issued by the Registrant to HV
    Capital Investors, L.L.C. on August 1, 2008 and
    September 19, 2008
10
.34
First Amendment to Note Purchase Agreement between the
    Registrant and HV Capital Investors, L.L.C., dated
    January 20, 2009 and effective as of December 31, 2008
10
.35
Form of Unsecured Subordinated Promissory Note (Series A and
    Series A1)
10
.35A
Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series A and Series A1)
10
.36
Form of Unsecured Subordinated Promissory Note (Series B and
    Series C)
10
.36A
Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series B and Series C)
10
.37
Form of Unsecured Subordinated Promissory Note (April 2010)
10
.37A
Schedule of Holders of Unsecured Subordinated Promissory Notes
    (April 2010)
10
.38
Amendment No. 1 to Unsecured Subordinated Promissory Notes among
    the Registrant and certain holders of its Unsecured Subordinated
    Promissory Notes
10
.39
Lease Agreement between the Registrant and CB Parkway Business
    Center V, Ltd., dated July 23, 1999
10
.40
First Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center V, Ltd., dated November 29,
    1999
10
.41
Second Amendment to Lease Agreement between the Registrant and
    CB Parkway Business Center V, Ltd., dated January 30,
    2006
10
.42
Third Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center V, Ltd., dated August 28, 2006
10
.43
Fourth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated November 2007
10
.44
Fifth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated February 4, 2009
10
.45
Sixth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated March 30, 2009
10
.46
Lease Agreement between the Registrant and Savoy IBP 8,
    Ltd., dated August 28, 2006
10
.47
First Amendment to Lease Agreement among the Registrant,
    ARI-International Business Park, LLC, ARI -IBP 1, LLC, ARI
    - IBP 2, LLC, ARI - IBP 3, LLC, ARI - IBP 4, LLC,
    ARI - IBP 5, LLC, ARI - IBP 6, LLC, ARI - IBP 7,
    LLC, ARI - IBP 8, LLC, ARI - IBP 9, LLC, ARI -
    IBP 11, LLC and ARI - IBP 12, LLC, dated
    December 28, 2009
10
.48†
Master Services Agreement between the Registrant and DataBank
    Holdings Ltd., dated May 31, 2007
21
.1
Subsidiaries of the Registrant
23
.1
Consent of Ernst & Young LLP, Independent Registered Public
    Accounting Firm
23
.2*
Consent of Wilson Sonsini Goodrich & Rosati, Professional
    Corporation (contained in Exhibit 5.1)
24
.1
Power of Attorney (contained in the signature page to this
    registration statement)
+
Indicates management contract or compensatory plan or
    arrangement.
*
To be filed by amendment.
†
Confidential treatment has been requested for portions of this
    exhibit. These portions have been omitted from the Registration
    Statement and submitted separately to the Securities and
    Exchange Commission.
II-5
Table of Contents
(b)
Financial
    Statement Schedules
The following schedule is filed as part of this registration
    statement:
All other schedules have been omitted because the information
    required to be presented in them is not applicable or is shown
    in the financial statements or related notes.
SCHEDULE II —
    VALUATION AND QUALIFYING ACCOUNTS
REALPAGE, INC.
December 31, 2009
(in thousands)
Allowance for Doubtful Accounts
Additions
Balance at
Charged to
Additions
Balance at
Beginning
Costs and
Due to
End of
Description
of Year
Expenses
Acquisitions
Deduction(1)
Year
Year ended December 31:
2007
$
923
$
1,490
—
—
$
2,413
2008
2,413
301
$
181
—
2,895
2009
2,895
441
175
$
(1,289
)
2,222
(1)
Uncollectible accounts written off, net of recoveries.
Item 17.
Undertakings
The undersigned registrant hereby undertakes to provide to the
    underwriter at the closing specified in the underwriting
    agreements, certificates in such denominations and registered in
    such names as required by the underwriter to permit prompt
    delivery to each purchaser.
Insofar as indemnification for liabilities arising under the
    Securities Act may be permitted to directors, officers and
    controlling persons of the registrant pursuant to the foregoing
    provisions, or otherwise, the registrant has been advised that
    in the opinion of the SEC such indemnification is against public
    policy as expressed in the Securities Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Securities Act and
    will be governed by the final adjudication of such issue.
The undersigned registrant hereby undertakes that:
1. For purposes of determining any liability under the
    Securities Act, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule 430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule 424(b)(1) or (4) or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.
2. For the purpose of determining any liability under the
    Securities Act, each post-effective amendment that contains a
    form of prospectus shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time shall be deemed to be
    the initial
bona fide
offering thereof.
II-6
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Carrollton, State of Texas, on this
    29
th
day

    of April, 2010.
REALPAGE, INC.
By:
/s/
Stephen
    T. Winn
Stephen T. Winn
Chairman of the Board, Chief Executive Officer and Director
POWER OF
    ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose
    signature appears below constitutes and appoints Stephen T. Winn
    and Timothy J. Barker, and each of them, his true and lawful
    attorneys-in-fact and agents with full power of substitution,
    for him and in his name, place and stead, in any and all
    capacities, to sign any and all amendments (including post
    effective amendments) to this registration statement, and to
    sign any registration statement for the same offering covered by
    this registration statement that is to be effective on filing
    pursuant to Rule 462(b) promulgated under the Securities
    Act of 1933, as amended, and all post-effective amendments
    thereto, and to file the same, with all exhibits thereto and all
    documents in connection therewith, with the SEC, granting unto
    said attorneys-in-fact and agents, and each of them, full power
    and authority to do and perform each and every act and thing
    requisite and necessary to be done in and about the premises, as
    fully to all intents and purposes as he might or could do in
    person, hereby ratifying and confirming all that said
    attorneys-in-fact and agents or any of them, or his or their
    substitute or substitutes, may lawfully do or cause to be done
    by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed by the
    following persons on behalf of the registrant and in the
    capacities and on the dates indicated:
Signature
Title
Date
/s/
Stephen
    T. Winn
Stephen
    T. Winn
Chairman of the Board, Chief Executive Officer, and Director
    (Principal
Executive Officer)
April 29, 2010
/s/
Timothy
    J. Barker
Timothy
    J. Barker
Chief Financial Officer and Treasurer (Principal Financial and
    Accounting Officer)
April 29, 2010
/s/
Alfred
    R. Berkeley, III
Alfred
    R. Berkeley, III
Director
April 29, 2010
/s/
Richard
    M. Berkeley
Richard
    M. Berkeley
Director
April 29, 2010
/s/
Peter
    Gyenes
Peter
    Gyenes
Director
April 29, 2010
/s/
Jeffrey
    T. Leeds
Jeffrey
    T. Leeds
Director
April 29, 2010
/s/
Jason
    A. Wright
Jason
    A. Wright
Director
April 29, 2010
II-7
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Description
1
.1*
Form of Underwriting Agreement
3
.1
Amended and Restated Certificate of Incorporation of the
    Registrant currently in effect
3
.2*
Form of Amended and Restated Certificate of Incorporation of the
    Registrant to be effective upon the completion of this offering
3
.3
Bylaws of the Registrant in effect before the completion of this
    offering
3
.4*
Form of Amended and Restated Bylaws of the Registrant to be
    effective upon the completion of this offering
4
.1*
Form of Common Stock certificate of the Registrant
4
.2
Shareholders' Agreement among the Registrant and certain
    stockholders, dated December 1, 1998, as amended July 16,
    1999 and November 3, 2000
4
.3
Second Amended and Restated Registration Rights Agreement among
    the Registrant and certain stockholders, dated February 22,
    2008
4
.4
Fourth Amended and Restated Shareholders Agreement among the
    Registrant and certain stockholders, dated March 17, 2010
4
.5
Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III, L.P. regarding management rights, dated
    December 14, 2005
4
.6
Letter Agreement between the Registrant and Camden Partners
    Strategic Fund III-A, L.P. regarding management rights, dated
    December 14, 2005
5
.1*
Opinion of Wilson Sonsini Goodrich & Rosati, Professional
    Corporation
10
.1
Form of Indemnification Agreement to be entered into between the
    Registrant and each of its directors and officers
10
.2+
Amended and Restated 1998 Stock Incentive Plan
10
.2A+
Form of Notice of Stock Option Grant
10
.2B+
Form of Notice of Grant of Restricted Shares
10
.2C+
Form of Non-Qualified Stock Option Agreement (Second Series)
10
.2D+
Form of Non-Qualified Stock Option Agreement
10
.3+
Form of Director's Nonqualified Stock Option Agreement
10
.4+
2010 Equity Incentive Plan
10
.5+
Form of 2009 Management Incentive Plan
10
.6+
Form of 2010 Management Incentive Plan
10
.7+
Stand-Alone Stock Option Agreement between the Registrant and
    Peter Gyenes, dated February 25, 2010
10
.8+
Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated October 27, 2005
10
.9+
Non-Qualified Stock Option Agreement (Second Series) under the
    Amended and Restated 1998 Stock Incentive Plan between the
    Registrant and Timothy J. Barker dated February 26, 2009
10
.10+
Notice of Stock Option Grant under the Amended and Restated 1998
    Stock Incentive Plan between the Registrant and Timothy J.
    Barker dated February 25, 2010
10
.11+
Employment Agreement between the Registrant and Stephen T. Winn,
    dated December 30, 2003
10
.12+
Employment Agreement between the Registrant and Timothy J.
    Barker, dated October 31, 2005
10
.13+
Amendment to Employment Agreement between the Registrant and
    Timothy J. Barker, dated January 1, 2010
10
.14+
Employment Agreement between the Registrant and William E.
    Van Valkenberg, dated September 24, 2009
10
.15+
Master Agreement for Consulting Services between the Registrant
    and William E. Van Valkenberg, dated June 28, 2009
10
.16+
Employment Agreement between the Registrant and Ashley Chaffin
    Glover, dated March 3, 2005
10
.17+
Employment Agreement between Multifamily Internet Ventures, LLC
    and Dirk D. Wakeham, dated April 12, 2007 and amended
    April 12, 2007
10
.18
Credit Agreement among the Registrant, Wells Fargo Foothill, LLC
    and Comerica Bank dated, September 3, 2009
Table of Contents
Exhibit
Number
Description
10
.19
Security Agreement among the Registrant, OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September 3, 2009
10
.20
General Continuing Guaranty among OpsTechnology, Inc.,
    Multifamily Internet Ventures, LLC, Starfire Media, Inc.,
    RealPage India Holdings, Inc. and Wells Fargo Foothill, LLC,
    dated September 3, 2009
10
.21
Waiver and First Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica Bank, dated
    September 16, 2009
10
.22
General Continuing Guaranty between A.L. Wizard, Inc. and Wells
    Fargo Foothill, LLC, dated September 25, 2009
10
.23
Waiver and Second Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC and Comerica bank, dated
    October 15, 2009
10
.24
General Continuing Guarantee between Propertyware, Inc. and
    Wells Fargo Foothill, LLC, dated November 6, 2009
10
.25
Supplement No. 2 to Security Agreement between Propertyware,
    Inc. and Wells Fargo Foothill, LLC, dated November 6, 2009
10
.26
Consent and Third Amendment to Credit Agreement among the
    Registrant, Wells Fargo Foothill, LLC, and Comerica Bank dated
    December 23, 2009
10
.27
Waiver, Consent and Fourth Amendment to Credit Agreement among
    the Registrant, Wells Fargo Capital Finance, LLC (f/k/a Wells
    Fargo Foothill, LLC) and Comerica Bank dated February 10,
    2010
10
.28
General Security Agreement between 43642 Yukon, Inc. and Wells
    Fargo Capital Finance, LLC (f/k/a Wells Fargo Foothill, LLC),
    dated February 10, 2010
10
.29
Guarantee between 43642 Yukon, Inc. and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February 10, 2010
10
.30
Share Pledge between the Registrant and Wells Fargo Capital
    Finance, LLC (f/k/a Wells Fargo Foothill, LLC), dated
    February 10, 2010
10
.31
Note Purchase Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August 1, 2008
10
.32
Security Agreement between the Registrant and HV Capital
    Investors, L.L.C., dated August 1, 2008
10
.33
Form of Secured Promissory Note issued by the Registrant to HV
    Capital Investors, L.L.C. on August 1, 2008 and
    September 19, 2008
10
.34
First Amendment to Note Purchase Agreement between the
    Registrant and HV Capital Investors, L.L.C., dated
    January 20, 2009 and effective as of December 31, 2008
10
.35
Form of Unsecured Subordinated Promissory Note (Series A and
    Series A1)
10
.35A
Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series A and Series A1)
10
.36
Form of Unsecured Subordinated Promissory Note (Series B and
    Series C)
10
.36A
Schedule of Holders of Unsecured Subordinated Promissory Notes
    (Series B and Series C)
10
.37
Form of Unsecured Subordinated Promissory Note (April 2010)
10
.37A
Schedule of Holders of Unsecured Subordinated Promissory Notes
    (April 2010)
10
.38
Amendment No. 1 to Unsecured Subordinated Promissory Notes
    among the Registrant and certain holders of its Unsecured
    Subordinated Promissory Notes
10
.39
Lease Agreement between the Registrant and CB Parkway Business
    Center V, Ltd., dated July 23, 1999
10
.40
First Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center V, Ltd., dated November 29,
    1999
10
.41
Second Amendment to Lease Agreement between the Registrant and
    CB Parkway Business Center V, Ltd., dated January 30,
    2006
10
.42
Third Amendment to Lease Agreement between the Registrant and CB
    Parkway Business Center V, Ltd., dated August 28, 2006
10
.43
Fourth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated November 2007
10
.44
Fifth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated February 4, 2009
Table of Contents
Exhibit
Number
Description
10
.45
Sixth Amendment to Lease Agreement between the Registrant and
    ARI-Commercial Properties, Inc., dated March 30, 2009
10
.46
Lease Agreement between the Registrant and Savoy IBP 8,
    Ltd., dated August 28, 2006
10
.47
First Amendment to Lease Agreement among the Registrant,
    ARI-International Business Park, LLC, ARI -IBP 1, LLC, ARI
    - IBP 2, LLC, ARI - IBP 3, LLC, ARI - IBP 4, LLC,
    ARI - IBP 5, LLC, ARI - IBP 6, LLC, ARI - IBP 7,
    LLC, ARI - IBP 8, LLC, ARI - IBP 9, LLC, ARI -
    IBP 11, LLC and ARI - IBP 12, LLC, dated
    December 28, 2009
10
.48†
Master Services Agreement between the Registrant and DataBank
    Holdings Ltd., dated May 31, 2007
21
.1
Subsidiaries of the Registrant
23
.1
Consent of Ernst & Young LLP, Independent Registered Public
    Accounting Firm
23
.2*
Consent of Wilson Sonsini Goodrich & Rosati, Professional
    Corporation (contained in Exhibit 5.1)
24
.1
Power of Attorney (contained in the signature page to this
    registration statement)
+
Indicates management contract or compensatory plan or
    arrangement.
*
To be filed by amendment.
†
Confidential treatment has been requested for portions of this
    exhibit. These portions have been omitted from the Registration
    Statement and submitted separately to the Securities and
    Exchange Commission.