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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>U.S.
        SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of the Securities Exchange Act of
        1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
        1, 2005</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Axeda
        Systems Inc.</strong></font></div>
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        name of issuer as specified in its charter)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font size="2">Delaware</font></strong></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font size="2">000-26287</font></strong></div>
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        Oxford Road, Mansfield, Massachusetts 02048</strong></font></div>
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        and Zip Code of Principal Executive Offices)</font></div>
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        337-9200</strong></font></div>
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        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></div>
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              <td><font size="2">Written communications pursuant to Rule 425 under
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                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)</font></div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
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                  communications pursuant to Rule 13e-4(c) under the Exchange Act
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        Arrangement of a Registrant</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 1, 2005, we entered into a definitive asset purchase agreement
        to sell
        our device relationship management (DRM) business and related assets to ASOC
        Acquisition Corp., a new corporation formed and owned by JMI Equity Fund
        V, L.P.
        and JMI Equity Fund V (AI), L.P., or JMI, for $7,000,000 plus the assumption
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        certain liabilities related to the DRM business. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
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        sale does not involve or affect our industrial automation product line which
        is
        marketed under the &#8220;Supervisor&#8221; name, including our @aGlance and Web@aGlance
        products, and related services. The Supervisor business shall continue to
        operate through our Axeda Systems S.A.S. subsidiary.</font></div>
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        of Directors, based on the unanimous recommendation of a special independent
        committee of disinterested directors, has approved the transaction and
        definitive agreement and has authorized the preparation of proxy materials
        containing the Board&#8217;s recommendation that our stockholders approve the
        transaction. Each of our officers and directors, other than the members of
        the
        special committee, have agreed in writing to vote in favor of the transaction.
        Those officers and directors collectively hold approximately 0.95% of our
        outstanding common stock.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the transaction, JMI has committed to provide $1.5 million
        of
        bridge loans, $600,000 of which was previously advanced to us, and the remaining
        $900,000 was advanced to us following signing of the definitive documents.
        The
        bridge loans bear interest at the rate of 7% per annum and are secured by
        security interests in the assets of our DRM business. It is anticipated that
        JMI
        will assign the notes evidencing our indebtedness under these loans to ASOC
        Acquisition Corp., and that those notes will be surrendered as partial payment
        of the purchase price to be paid by ASOC Acquisition Corp. at the closing
        of the
        asset sale transaction.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the terms of an amended and restated subordination agreement which Laurus
        Master Fund, Ltd., or Laurus, the holder of a senior security interest in
        the
        assets of our DRM business, has entered into with JMI and us, Laurus has
        agreed
        to subordinate its right to payment of the note we issued to it, and its
        security interest in those assets, so that JMI holds a senior secured lien
        therein to the extent of the first $600,000 of bridge loans that JMI previously
        provided to us. With respect to the $900,000 balance of the bridge loans
        that
        JMI recently provided to us, its security interest in the assets of our DRM
        business is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>pari</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>passu</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        with the
        security interest held by Laurus in the same assets.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Also,
        pursuant to the amended and restated subordination agreement, JMI and Laurus
        have agreed, among other things, that:</font></div>
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            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">until
                we pay the $600,000 of senior indebtedness that we owe to JMI, neither
                JMI
                nor Laurus shall take any actions to:</font></div>
            </td>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#9642;&#160;&#160;</font></td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">accelerate
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                that we
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amend
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">accelerate
                the maturity of any subordinated debt;</font></div>
            </td>
          </tr>

      </table>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#9642;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">demand
                payment of any subordinated debt or exercise any right or remedy;
                or</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#9642;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">take
                any action, against us or any of our assets or property to enforce
                its
                rights with respect to any subordinated
                debt;</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#9642;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                the event that our stockholders do not adopt and approve the asset
                purchase agreement, the asset purchase agreement is terminated in
                accordance with its terms or the asset purchase transaction is not
                consummated on or before January 15, 2006, whichever first occurs,
                JMI and
                Laurus have certain rights to purchase the other party&#8217;s notes evidencing
                our indebtedness.</font></div>
            </td>
          </tr>

      </table>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                either JMI or Laurus exercises their respective purchase rights,
                the party
                who does so would be our sole senior secured creditor, and would
                hold a
                security interest covering all of our assets. If we were to fail
                to pay
                off the more than $6,000,000 that would then be due and owing under
                the
                JMI and Laurus loan documents, the exercising party could seek to
                commence
                foreclosure proceedings upon all of our
                assets.</font></div>
            </td>
          </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
        is our
        intention to hold a special meeting of our stockholders during the latter
        half
        of October 2005 for the purposes of approving and adopting the asset purchase
        agreement and the consummation of the DRM business asset sale to ASOC
        Acquisition Corp., and changing our name in the manner to be set forth in
        the
        proxy materials to be disseminated in connection with that meeting.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        providing the following information pursuant to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rule
        14a-12 under the Exchange Act (17 CFR 240.14a-12):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        stockholders are advised to read the proxy statement regarding the proposed
        sale
        of our DRM business and assets to JMI, when it becomes available, because
        it
        will contain important information. We expect to mail a proxy statement about
        the asset sale to our stockholders and will file such proxy statement with
        the
        Securities and Exchange Commission. Stockholders may obtain a free copy of
        the
        proxy statement (when available) and other documents filed by us at the
        Securities and Exchange Commission&#8217;s web site at http://www.sec.gov.
        Stockholders can also obtain, free of charge, copies of the proxy statement
        (when available), together with any other documents that we have filed with
        the
        SEC, by directing a request to Axeda Systems Inc., 21 Oxford Street, Mansfield,
        MA 02048, attention: Investor Relations, telephone: (508) 337-9200.</font></div>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 63pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        Statements and Exhibits</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following financial statements, pro forma financial information and exhibits
        have been filed as part of this Report:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        Statements &#8212; none</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
        forma
        financial information &#8212; none</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="11%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">Number</font></u><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">Description</font></u></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">&#160;</td>
              <td align="left" valign="top" width="62%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.35</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Asset
                  Purchase Agreement dated as of September 1, 2005 among Axeda Systems,
                  Inc., Axeda Systems Operating Company, Inc., Axeda IP, Inc. and
                  ASOC
                  Acquisition Corp.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.36</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Voting Agreement dated September 1, 2005 and executed by ASOC
                  Acquisition Corp. with each of the following stockholders: David
                  Bennett,
                  Paul Vais, Karen Kupfererg, James Hansen, Robert M. Russell, Jr.,
                  Richard
                  MacKeen and Dale Calder</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.37</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
                  Subordinated Secured Bridge Note Purchase Agreement dated as of
                  September
                  1, 2005 by and among Axeda Systems Inc., Axeda Systems Operating
                  Company,
                  Inc., Axeda IP, Inc., JMI Equity Fund V, L.P. and JMI Equity Fund
                  V (AI),
                  L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.38</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                  No. 1 to Senior Secured Bridge Note Purchase Agreement entered
                  into
                  effective as of September 1, 2005 by and among Axeda Systems Inc.,
                  Axeda
                  Systems Operating Company, Inc., JMI Equity Fund V, L.P. and JMI
                  Equity
                  Fund V (AI), L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.39</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Security Agreement dated as of September 1, 2005 by
                  and among
                  Axeda Systems Inc., Axeda Systems Operating Company, Inc., Axeda
                  IP, Inc.,
                  JMI Equity Fund V, L.P., and JMI Equity Fund V (AI),
                  L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.40</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Subsidiary Guaranty dated as of September 1, 2005
                  granted by
                  Axeda Systems Operating Company, Inc. and Axeda IP, Inc. in favor
                  of JMI
                  Equity Fund V, L.P., and JMI Equity Fund V (AI), L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.41</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Subordination Agreement dated as of September 1, 2005
                  by and
                  among Axeda Systems Inc., JMI Equity Fund V, L.P., JMI Equity Fund
                  V (AI),
                  L.P. and Laurus Master Fund, Ltd.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release dated September 1, 2005 regarding the execution of the
                  asset
                  purchase agreement.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Signature</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with the requirements of the Exchange Act, the registrant caused
        this
        report to be signed on its behalf by the undersigned, thereunto duly
        authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Axeda
                Systems Inc.</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                September 8, 2005</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Karen
                F. Kupferberg</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%"><font size="2">Karen
                F. Kupferberg, </font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><a name="iManRefreshTempBookmark"/>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
        Index</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.35</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Asset
                  Purchase Agreement dated as of September 1, 2005 among Axeda Systems,
                  Inc., Axeda Systems Operating Company, Inc., Axeda IP, Inc. and
                  ASOC
                  Acquisition Corp.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.36</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Voting Agreement dated September 1, 2005 and executed by ASOC
                  Acquisition Corp. with each of the following stockholders: David
                  Bennett,
                  Paul Vais, Karen Kupfererg, James Hansen, Robert M. Russell, Jr.,
                  Richard
                  MacKeen and Dale Calder</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.37</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
                  Subordinated Secured Bridge Note Purchase Agreement dated as of
                  September
                  1, 2005 by and among Axeda Systems Inc., Axeda Systems Operating
                  Company,
                  Inc., Axeda IP, Inc., JMI Equity Fund V, L.P. and JMI Equity Fund
                  V (AI),
                  L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.38</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                  No. 1 to Senior Secured Bridge Note Purchase Agreement entered
                  into
                  effective as of September 1, 2005 by and among Axeda Systems Inc.,
                  Axeda
                  Systems Operating Company, Inc., JMI Equity Fund V, L.P. and JMI
                  Equity
                  Fund V (AI), L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.39</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Security Agreement dated as of September 1, 2005 by
                  and among
                  Axeda Systems Inc., Axeda Systems Operating Company, Inc., Axeda
                  IP, Inc.,
                  JMI Equity Fund V, L.P., and JMI Equity Fund V (AI),
                  L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.40</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Subsidiary Guaranty dated as of September 1, 2005
                  granted by
                  Axeda Systems Operating Company, Inc. and Axeda IP, Inc. in favor
                  of JMI
                  Equity Fund V, L.P., and JMI Equity Fund V (AI), L.P.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.41</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Subordination Agreement dated as of September 1, 2005
                  by and
                  among Axeda Systems Inc., JMI Equity Fund V, L.P., JMI Equity Fund
                  V (AI),
                  L.P. and Laurus Master Fund, Ltd.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release dated September 1, 2005 regarding the execution of the
                  asset
                  purchase agreement.</font></div>
              </td>
            </tr>

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{"company-data": {"conformed-name": "AXEDA SYSTEMS INC", "cik": "0001052593", "assigned-sic": "7372", "irs-number": "232763854", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26287", "film-number": "051075241"}, "business-address": {"street1": "21 OXFORD ROAD", "city": "MANSFIELD", "state": "MA", "zip": "02048", "phone": "508-337-9200"}, "mail-address": {"street1": "21 OXFORD ROAD", "city": "MANSFIELD", "state": "MA", "zip": "02048"}, "former-company": [{"former-conformed-name": "RAVISENT TECHNOLOGIES INC", "date-changed": "19990617"}, {"former-conformed-name": "DIVICORE INC", "date-changed": "19990428"}, {"former-conformed-name": "QUADRANT INTERNATIONAL INC", "date-changed": "19990323"}]}
U.S.
        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:
September
        1, 2005
Axeda
        Systems Inc.
(Exact
        name of issuer as specified in its charter)
Delaware
000-26287
23-2763854
(State
                  or Other Jurisdiction of
(Commission
                  File
(IRS
                  Employer
Incorporation
                  or Organization)
Number)
Identification
                  No.)
21
        Oxford Road, Mansfield, Massachusetts 02048
(Address
        and Zip Code of Principal Executive Offices)
(508)
        337-9200
(Registrant's
        Telephone Number)
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)
ý
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))
Item
        1.01
Entry
        into a Material Definitive Agreement
Item
        2.03
Creation
        of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
        Arrangement of a Registrant
On
        September 1, 2005, we entered into a definitive asset purchase agreement
        to sell
        our device relationship management (DRM) business and related assets to ASOC
        Acquisition Corp., a new corporation formed and owned by JMI Equity Fund
        V, L.P.
        and JMI Equity Fund V (AI), L.P., or JMI, for $7,000,000 plus the assumption
        of
        certain liabilities related to the DRM business.
The
        asset
        sale does not involve or affect our industrial automation product line which
        is
        marketed under the "Supervisor" name, including our @aGlance and Web@aGlance
        products, and related services. The Supervisor business shall continue to
        operate through our Axeda Systems S.A.S. subsidiary.
Our
        Board
        of Directors, based on the unanimous recommendation of a special independent
        committee of disinterested directors, has approved the transaction and
        definitive agreement and has authorized the preparation of proxy materials
        containing the Board's recommendation that our stockholders approve the
        transaction. Each of our officers and directors, other than the members of
        the
        special committee, have agreed in writing to vote in favor of the transaction.
        Those officers and directors collectively hold approximately 0.95% of our
        outstanding common stock.
In
        connection with the transaction, JMI has committed to provide $1.5 million
        of
        bridge loans, $600,000 of which was previously advanced to us, and the remaining
        $900,000 was advanced to us following signing of the definitive documents.
        The
        bridge loans bear interest at the rate of 7% per annum and are secured by
        security interests in the assets of our DRM business. It is anticipated that
        JMI
        will assign the notes evidencing our indebtedness under these loans to ASOC
        Acquisition Corp., and that those notes will be surrendered as partial payment
        of the purchase price to be paid by ASOC Acquisition Corp. at the closing
        of the
        asset sale transaction.
Pursuant
        to the terms of an amended and restated subordination agreement which Laurus
        Master Fund, Ltd., or Laurus, the holder of a senior security interest in
        the
        assets of our DRM business, has entered into with JMI and us, Laurus has
        agreed
        to subordinate its right to payment of the note we issued to it, and its
        security interest in those assets, so that JMI holds a senior secured lien
        therein to the extent of the first $600,000 of bridge loans that JMI previously
        provided to us. With respect to the $900,000 balance of the bridge loans
        that
        JMI recently provided to us, its security interest in the assets of our DRM
        business is
pari
passu
with the
        security interest held by Laurus in the same assets.
Also,
        pursuant to the amended and restated subordination agreement, JMI and Laurus
        have agreed, among other things, that:
·
until
                we pay the $600,000 of senior indebtedness that we owe to JMI, neither
                JMI
                nor Laurus shall take any actions to:
▪
accelerate
                the approximately $4.5 million of subordinated indebtedness that
                we owe to
                Laurus or the approximately $900,000 of subordinated indebtedness
                that we
                will owe to JMI;
▪
amend
                or modify the terms of the subordinated indebtedness owed to
                them;
▪
accelerate
                the maturity of any subordinated debt;
▪
demand
                payment of any subordinated debt or exercise any right or remedy;
                or
▪
take
                any action, against us or any of our assets or property to enforce
                its
                rights with respect to any subordinated
                debt;
▪
in
                the event that our stockholders do not adopt and approve the asset
                purchase agreement, the asset purchase agreement is terminated in
                accordance with its terms or the asset purchase transaction is not
                consummated on or before January 15, 2006, whichever first occurs,
                JMI and
                Laurus have certain rights to purchase the other party's notes evidencing
                our indebtedness.
·
If
                either JMI or Laurus exercises their respective purchase rights,
                the party
                who does so would be our sole senior secured creditor, and would
                hold a
                security interest covering all of our assets. If we were to fail
                to pay
                off the more than $6,000,000 that would then be due and owing under
                the
                JMI and Laurus loan documents, the exercising party could seek to
                commence
                foreclosure proceedings upon all of our
                assets.
It
        is our
        intention to hold a special meeting of our stockholders during the latter
        half
        of October 2005 for the purposes of approving and adopting the asset purchase
        agreement and the consummation of the DRM business asset sale to ASOC
        Acquisition Corp., and changing our name in the manner to be set forth in
        the
        proxy materials to be disseminated in connection with that meeting.
We
        are
        providing the following information pursuant to
Rule
        14a-12 under the Exchange Act (17 CFR 240.14a-12):
Our
        stockholders are advised to read the proxy statement regarding the proposed
        sale
        of our DRM business and assets to JMI, when it becomes available, because
        it
        will contain important information. We expect to mail a proxy statement about
        the asset sale to our stockholders and will file such proxy statement with
        the
        Securities and Exchange Commission. Stockholders may obtain a free copy of
        the
        proxy statement (when available) and other documents filed by us at the
        Securities and Exchange Commission's web site at http://www.sec.gov.
        Stockholders can also obtain, free of charge, copies of the proxy statement
        (when available), together with any other documents that we have filed with
        the
        SEC, by directing a request to Axeda Systems Inc., 21 Oxford Street, Mansfield,
        MA 02048, attention: Investor Relations, telephone: (508) 337-9200.
Item
        9.01
Financial
        Statements and Exhibits
The
        following financial statements, pro forma financial information and exhibits
        have been filed as part of this Report:
(a)
Financial
        Statements — none
(b)
Pro
        forma
        financial information — none
(c)
Exhibits
Number
Description
10.35
Asset
                  Purchase Agreement dated as of September 1, 2005 among Axeda Systems,
                  Inc., Axeda Systems Operating Company, Inc., Axeda IP, Inc. and
                  ASOC
                  Acquisition Corp.
10.36
Form
                  of Voting Agreement dated September 1, 2005 and executed by ASOC
                  Acquisition Corp. with each of the following stockholders: David
                  Bennett,
                  Paul Vais, Karen Kupfererg, James Hansen, Robert M. Russell, Jr.,
                  Richard
                  MacKeen and Dale Calder
10.37
Senior
                  Subordinated Secured Bridge Note Purchase Agreement dated as of
                  September
                  1, 2005 by and among Axeda Systems Inc., Axeda Systems Operating
                  Company,
                  Inc., Axeda IP, Inc., JMI Equity Fund V, L.P. and JMI Equity Fund
                  V (AI),
                  L.P.
10.38
Amendment
                  No. 1 to Senior Secured Bridge Note Purchase Agreement entered
                  into
                  effective as of September 1, 2005 by and among Axeda Systems Inc.,
                  Axeda
                  Systems Operating Company, Inc., JMI Equity Fund V, L.P. and JMI
                  Equity
                  Fund V (AI), L.P.
10.39
Amended
                  and Restated Security Agreement dated as of September 1, 2005 by
                  and among
                  Axeda Systems Inc., Axeda Systems Operating Company, Inc., Axeda
                  IP, Inc.,
                  JMI Equity Fund V, L.P., and JMI Equity Fund V (AI),
                  L.P.
10.40
Amended
                  and Restated Subsidiary Guaranty dated as of September 1, 2005
                  granted by
                  Axeda Systems Operating Company, Inc. and Axeda IP, Inc. in favor
                  of JMI
                  Equity Fund V, L.P., and JMI Equity Fund V (AI), L.P.
10.41
Amended
                  and Restated Subordination Agreement dated as of September 1, 2005
                  by and
                  among Axeda Systems Inc., JMI Equity Fund V, L.P., JMI Equity Fund
                  V (AI),
                  L.P. and Laurus Master Fund, Ltd.
99.1
Press
                  Release dated September 1, 2005 regarding the execution of the
                  asset
                  purchase agreement.
Signature
In
        accordance with the requirements of the Exchange Act, the registrant caused
        this
        report to be signed on its behalf by the undersigned, thereunto duly
        authorized.
Axeda
                Systems Inc.
Dated:
                September 8, 2005
By:
/s/ Karen
                F. Kupferberg
Karen
                F. Kupferberg,
Chief
                Financial Officer
Exhibit
        Index
10.35
Asset
                  Purchase Agreement dated as of September 1, 2005 among Axeda Systems,
                  Inc., Axeda Systems Operating Company, Inc., Axeda IP, Inc. and
                  ASOC
                  Acquisition Corp.
10.36
Form
                  of Voting Agreement dated September 1, 2005 and executed by ASOC
                  Acquisition Corp. with each of the following stockholders: David
                  Bennett,
                  Paul Vais, Karen Kupfererg, James Hansen, Robert M. Russell, Jr.,
                  Richard
                  MacKeen and Dale Calder
10.37
Senior
                  Subordinated Secured Bridge Note Purchase Agreement dated as of
                  September
                  1, 2005 by and among Axeda Systems Inc., Axeda Systems Operating
                  Company,
                  Inc., Axeda IP, Inc., JMI Equity Fund V, L.P. and JMI Equity Fund
                  V (AI),
                  L.P.
10.38
Amendment
                  No. 1 to Senior Secured Bridge Note Purchase Agreement entered
                  into
                  effective as of September 1, 2005 by and among Axeda Systems Inc.,
                  Axeda
                  Systems Operating Company, Inc., JMI Equity Fund V, L.P. and JMI
                  Equity
                  Fund V (AI), L.P.
10.39
Amended
                  and Restated Security Agreement dated as of September 1, 2005 by
                  and among
                  Axeda Systems Inc., Axeda Systems Operating Company, Inc., Axeda
                  IP, Inc.,
                  JMI Equity Fund V, L.P., and JMI Equity Fund V (AI),
                  L.P.
10.40
Amended
                  and Restated Subsidiary Guaranty dated as of September 1, 2005
                  granted by
                  Axeda Systems Operating Company, Inc. and Axeda IP, Inc. in favor
                  of JMI
                  Equity Fund V, L.P., and JMI Equity Fund V (AI), L.P.
10.41
Amended
                  and Restated Subordination Agreement dated as of September 1, 2005
                  by and
                  among Axeda Systems Inc., JMI Equity Fund V, L.P., JMI Equity Fund
                  V (AI),
                  L.P. and Laurus Master Fund, Ltd.
99.1
Press
                  Release dated September 1, 2005 regarding the execution of the
                  asset
                  purchase agreement.