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Prepared and filed by St Ives Financial
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<p align="center"><font size="2" face="serif">UNITED STATES</font><br>
<font size="2" face="serif">SECURITIES AND EXCHANGE COMMISSION</font><br>
<font size="2" face="serif">Washington, D.C. 20549</font></p>
<p align="center"><font size="2" face="serif">FORM 8-K</font></p>
<p align="center"><font size="2" face="serif">CURRENT REPORT Pursuant</font><br>
<font size="2" face="serif">to Section 13 or 15(d) of the</font><br>
<font size="2" face="serif">Securities Exchange Act of 1934</font></p>
<p align="left"><font size="2" face="serif">Date of report (Date of earliest event reported) October 27, 2006</font></p>

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    <td><div align="center"><font size="2" face="serif">Neoware, Inc.</font></div></td>
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    <td><div align="center"><font size="2" face="serif">(Exact Name of Registrant as Specified in
    Its Charter)</font></div></td>
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    <td>&nbsp;</td>
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    <td><div align="center"><font size="2" face="serif">Delaware</font></div></td>
    <td><div align="center"><font size="2" face="serif">000-21240</font></div></td>
    <td><div align="center"><font size="2" face="serif">23-2705700</font></div></td>
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    <td><div align="center"><font size="2" face="serif">(State or Other Jurisdiction of
    Incorporation)</font></div></td>
    <td><div align="center"><font size="2" face="serif">(Commission File
        Number)</font></div></td>
    <td><div align="center"><font size="2" face="serif">(IRS Employer Identification No.)</font></div></td>
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    <td>&nbsp;</td>
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    <td>&nbsp;</td>
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    <td>&nbsp;</td>
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    <td><font size="2" face="serif">3200 Horizon
    Drive, King of Prussia, Pennsylvania</font></td>
    <td><div align="center"><font size="2" face="serif">19406</font></div></td>
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    <td><font size="2" face="serif">(Address of
    Principal Executive Offices)</font></td>
    <td><div align="center"><font size="2" face="serif">(Zip Code)</font></div></td>
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    <td>&nbsp;</td>
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    <td><div align="center"><font size="2" face="serif">(610) 277-8300</font></div></td>
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    </td>
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    <td><div align="center"><font size="2" face="serif">(Registrant&#146;s Telephone
    Number, Including Area Code)</font></div></td>
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    <td>&nbsp;</td>
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    </td>
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    <td><div align="center"><font size="2" face="serif">(Former Name or Former Address, if Changed
    Since Last Report)</font></div></td>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="wingdings">&#111;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="wingdings">&#111;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="wingdings">&#111;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="wingdings">&#111;</font>&nbsp;&nbsp;&nbsp;&nbsp;&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 align="left"><font size="2" face="serif">Item 1.01. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry into a Material Definitive Agreement.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 27, 2006, to reflect the increase in the workload and responsibilities of directors and to attract qualified directors, the Board of Directors, upon recommendation of the Compensation and Stock Option Committee, approved the following changes effective as of January 1, 2007 with respect to the cash compensation of non-employee directors: (1) each non-employee member of the Board will receive an annual fee of $16,000 for services as a member of the Board, paid quarterly; (2) each non-employee director will receive $1,500 per Board meeting attended in person, $750 for each Board meeting attended telephonically and $500 for each committee meeting attended either in person or telephonically; (3) the chairman
of the Audit Committee will receive an annual fee of $16,000, the chairman of the Compensation and Stock Option Committee will receive an annual fee of $6,000 and the chairman of the Governance and Nominating Committee will receive an annual fee of $2,000, for his services during the 2007 fiscal year as chairman, paid quarterly; and (4) the independent lead director will receive an annual fee of $10,000, paid quarterly.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previously, during the 2006 fiscal year, all non-employee members of the Board received an annual fee of $7,500 for services as a member of the Board, $1,500 for each regular or special Board meeting attended in person, $750 for each such meeting attended by telephone and $500 for each committee meeting attended.  The chairman of the Audit Committee received an annual fee of $5,000, the chairmen of the Compensation and Stock Option Committee and the Governance and Nominating Committee each received an annual fee of $1,500, for their services during the 2006 fiscal year as chairmen in addition to the applicable meeting fees and the independent lead director earned an annual fee of $10,000.</font></p>
<p align="left"><font size="2" face="serif">Item 9.01 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits. </font></p>
<p align="left"><font size="2" face="serif">(c) Exhibits. The following document is filed as an exhibit to this report. </font></p>
<p align="left"><font size="2" face="serif">10.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of Cash Compensation Policy for Non-Employee Directors</font></p>
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<p align="center"><font size="2" face="serif"><b>SIGNATURES</b></font></p>
<p align="left"><font size="2" face="serif">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 duly authorized.</font></p>
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  <td align="left"><font size="2" face="serif">NEOWARE,
    INC.</font></td>
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  <td>&nbsp;</td>
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  <td align="left">&nbsp;</td>
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<td width="20%"><font size="2" face="serif">&nbsp;Dated: November 2, 2006</font></td>
<td width="30%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">By:<u> /S/ Eric N. Rubino&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
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  <td width="30%">&nbsp;</td>
  <td align="left"><font size="2" face="serif">Eric N. Rubino</font></td>
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  <td align="left"><font size="2" face="serif">Chief Operating Officer</font></td>
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Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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) October 27, 2006
Neoware, Inc.
(Exact Name of Registrant as Specified in
    Its Charter)
Delaware
000-21240
23-2705700
(State or Other Jurisdiction of
    Incorporation)
(Commission File
        Number)
(IRS Employer Identification No.)
3200 Horizon
    Drive, King of Prussia, Pennsylvania
19406
(Address of
    Principal Executive Offices)
(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):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.      Entry into a Material Definitive Agreement.
On October 27, 2006, to reflect the increase in the workload and responsibilities of directors and to attract qualified directors, the Board of Directors, upon recommendation of the Compensation and Stock Option Committee, approved the following changes effective as of January 1, 2007 with respect to the cash compensation of non-employee directors: (1) each non-employee member of the Board will receive an annual fee of $16,000 for services as a member of the Board, paid quarterly; (2) each non-employee director will receive $1,500 per Board meeting attended in person, $750 for each Board meeting attended telephonically and $500 for each committee meeting attended either in person or telephonically; (3) the chairman
of the Audit Committee will receive an annual fee of $16,000, the chairman of the Compensation and Stock Option Committee will receive an annual fee of $6,000 and the chairman of the Governance and Nominating Committee will receive an annual fee of $2,000, for his services during the 2007 fiscal year as chairman, paid quarterly; and (4) the independent lead director will receive an annual fee of $10,000, paid quarterly.
Previously, during the 2006 fiscal year, all non-employee members of the Board received an annual fee of $7,500 for services as a member of the Board, $1,500 for each regular or special Board meeting attended in person, $750 for each such meeting attended by telephone and $500 for each committee meeting attended.  The chairman of the Audit Committee received an annual fee of $5,000, the chairmen of the Compensation and Stock Option Committee and the Governance and Nominating Committee each received an annual fee of $1,500, for their services during the 2006 fiscal year as chairmen in addition to the applicable meeting fees and the independent lead director earned an annual fee of $10,000.
Item 9.01      Financial Statements and Exhibits.
(c) Exhibits. The following document is filed as an exhibit to this report.
10.1      Summary of Cash Compensation Policy for Non-Employee Directors
2
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 duly authorized.
NEOWARE,
    INC.
Dated: November 2, 2006
By:
/S/ Eric N. Rubino
Eric N. Rubino
Chief Operating Officer
3