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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, DC 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2><b>CURRENT
  REPORT Pursuant</b></font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>to
  Section 13 or 15(d) of the</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Securities
  Exchange Act of 1934</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Date
  of report (Date of earliest event reported) September 7, 2006</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=5>Neoware, Inc.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact Name of Registrant as Specified in Its Charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2><b>Delaware</b></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(State or Other Jurisdiction of Incorporation)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

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    <td align=center valign=top width="500"><font size=2><b>000-21240</b></font><br>
      <font size=2>(Commission File Number)</font><br>
    </td>
        <td align=center width="280">&nbsp;</td>

    <td align=center valign=top  width="280"><font size=2><b>23-2705700</b></font><br>
<font size=2>(IRS Employer Identification No.)</font></td>

    <td width="60">&nbsp;</td>
  </tr></table>

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                    <td align=center valign=top width="280"><font size=2>&nbsp;</font><br></td>
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                    <td align=center valign=top width="280"></td>
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    <td align=center valign=top width="500"><font size=2><b>3200
      Horizon Drive, King of Prussia, Pennsylvania</b></font><br>
      <font size=2>(Address of Principal Executive Offices)</font><br>
    </td>
        <td align=center width="280">&nbsp;</td>

    <td align=center valign=top width="280"><font size=2><b>19406</b></font><br>
<font size=2>(Zip Code)</font></td>

    <td width="60">&nbsp;</td>
  </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2><b>(610)
  277-8300</b></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Registrant&#146;s Telephone Number, Including Area Code)</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former Name or Former Address, if Changed Since Last Report)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><img src="emptybox.gif"><font size=2>&nbsp;
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR
  230.425)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><img src="emptybox.gif"><font size=2>&nbsp;
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><img src="emptybox.gif"><font size=2>&nbsp;
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
  Act (17 CFR 240.14d-2(b))</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><img src="emptybox.gif"><font size=2>
  &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
  Act (17 CFR 240.13e-4(c))</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Page 2</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Item 1.01</font></p> </td>

        <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Entry into a Material Definitive Agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>On September 7, 2006, the Compensation and Stock Option Committee (the &#147;Compensation Committee&#148;) of Neoware, Inc. (the &#147;Company&#148;) approved annual bonuses for its executive officers under the Company&#146;s Senior Officer Bonus Plan (the &#147;Plan&#148;). The Company did not achieve 100% of the operating income performance goal for fiscal 2006 that had been established in accordance with the Plan, which was previously approved by the Compensation Committee and disclosed by the Company on a Form 8-K filed with the SEC on January 31, 2006. In its discretion, the Compensation Committee granted bonuses based on percentages of base salaries that were less than 100% of each individual&#146;s target bonus percentage in accordance with the Plan, after taking into consideration the Company&#146;s performance during fiscal 2006 and such individual&#146;s contribution to that performance. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>The Compensation Committee approved cash bonuses under the Plan for each of the following executive officers: Michael Kantrowitz, Chairman and Chief Executive Officer, Eric Rubino, Chief Operating Officer, and Keith Schneck, Executive Vice President and Chief Financial Officer, were awarded bonuses equal to 40% of their target bonus percentages; and Peter Bolton, Executive Vice President-Europe, Middle East and Asia, and Wei Ching, Executive Vice President, Asia, were awarded bonuses equal to 33% of their target bonus percentages. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>All summaries or descriptions of the Plan are qualified in their entireties by the Plan filed as Exhibit 10.1 to the Company&#146;s Current Report on Form 8-K filed with the Securities Exchange Commission on January 31, 2006.</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Page 3</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font SIZE=2>SIGNATURES</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Dated: September 13, 2006</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Neoware, Inc.</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(Registrant)</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>  </p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br> <font size=2>/s/ Keith D. Schneck</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Keith D. Schneck</font><br> <font size=2>Executive Vice President and Chief Financial Officer</font></p> </td> </tr></table>
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[{"type": "8-K", "sequence": "1", "filename": "p414900_8-k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 14570}]
{"company-data": {"conformed-name": "NEOWARE INC", "cik": "0000894743", "assigned-sic": "3571", "irs-number": "232705700", "state-of-incorporation": "DE", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-21240", "film-number": "061088906"}, "business-address": {"street1": "3200 HORIZON DR", "city": "KING OF PRUSSIA", "state": "PA", "zip": "19406", "phone": "6102778300"}, "mail-address": {"street1": "3200 HORIZON DR", "city": "KING OF PRUSSIA", "state": "PA", "zip": "19406"}, "former-company": [{"former-conformed-name": "NEOWARE SYSTEMS INC", "date-changed": "19980928"}, {"former-conformed-name": "HDS NETWORK SYSTEMS INC", "date-changed": "19950313"}, {"former-conformed-name": "INFORMATION SYSTEMS ACQUISITION CORP", "date-changed": "19930108"}]}
Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT
  REPORT Pursuant
to
  Section 13 or 15(d) of the
Securities
  Exchange Act of 1934
Date
  of report (Date of earliest event reported) September 7, 2006
Neoware, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
000-21240
(Commission File Number)
23-2705700
(IRS Employer Identification No.)
3200
      Horizon Drive, King of Prussia, Pennsylvania
(Address of Principal Executive Offices)
19406
(Zip Code)
(610)
  277-8300
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
  230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
  Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
  Act (17 CFR 240.13e-4(c))
Page 2
Item 1.01
Entry into a Material Definitive Agreement.
On September 7, 2006, the Compensation and Stock Option Committee (the "Compensation Committee") of Neoware, Inc. (the "Company") approved annual bonuses for its executive officers under the Company's Senior Officer Bonus Plan (the "Plan"). The Company did not achieve 100% of the operating income performance goal for fiscal 2006 that had been established in accordance with the Plan, which was previously approved by the Compensation Committee and disclosed by the Company on a Form 8-K filed with the SEC on January 31, 2006. In its discretion, the Compensation Committee granted bonuses based on percentages of base salaries that were less than 100% of each individual's target bonus percentage in accordance with the Plan, after taking into consideration the Company's performance during fiscal 2006 and such individual's contribution to that performance.
The Compensation Committee approved cash bonuses under the Plan for each of the following executive officers: Michael Kantrowitz, Chairman and Chief Executive Officer, Eric Rubino, Chief Operating Officer, and Keith Schneck, Executive Vice President and Chief Financial Officer, were awarded bonuses equal to 40% of their target bonus percentages; and Peter Bolton, Executive Vice President-Europe, Middle East and Asia, and Wei Ching, Executive Vice President, Asia, were awarded bonuses equal to 33% of their target bonus percentages.
All summaries or descriptions of the Plan are qualified in their entireties by the Plan filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Securities Exchange Commission on January 31, 2006.
Page 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: September 13, 2006
Neoware, Inc.
(Registrant)
/s/ Keith D. Schneck
Keith D. Schneck
Executive Vice President and Chief Financial Officer