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 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;color:windowtext;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a></p> </div>

<p style="color:windowtext;font-size:10.0pt;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font><br>
</b>Washington, D.C. 20549</p>

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

<div style="color:windowtext;line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

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

<p style="color:windowtext;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM S-8</font></b></p>

<p style="color:windowtext;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</font></b></p>

<p style="color:windowtext;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman">&nbsp;</font></b></p>

<p style="color:windowtext;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">MICROFIELD GROUP, INC.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of issuer as specified in its charter)</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Oregon</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">93-0935149</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(State
  or other jurisdiction of <br>
  incorporation or organization)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(I.R.S.
  Employer<br>
  Identification No.)</font></b></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">111
SW Columbia, Suite 480<br>
Portland, Oregon 97201<br>
Telephone: (503) 419-3580<br>
</font></b>(Address of Principal
Executive Offices and Zip Code)</p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amended 2004 Stock Incentive Plan<br>
Restated 1995 Stock Incentive Plan<br>
</font></b>(Full Title of Plan)</p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Rodney M. Boucher, Chief Executive
Officer<br>
MICROFIELD GROUP, INC.<br>
111 SW Columbia, Suite 480<br>
Portland, Oregon 97201 <br>
</font></b>(Name and address of agent for service)</p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Telephone: (503) 419-3580 <br>
</font></b>(Telephone number, including area code, of agent for service)</p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Copies of all communications, including all
communications sent to agent for service to:</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Jeffrey Fessler, Esq.<br>
Sichenzia Ross Friedman Ference LLP<br>
1065 Avenue of Americas<br>
New York, NY 10018<br>
Phone (212) 930-9700<br>
Fax (212) 930-9725</font></b></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CALCULATION
OF REGISTRATION FEE</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <td width="16%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.22%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.4%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="18%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:18.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.88%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="22%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:22.28%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="16%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.22%;">
  <p style="color:windowtext;font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading -->Title of Securities to be Registered (1)</p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.4%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount to be Registered (2)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="18%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:18.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed Maximum Offering Price Per Share</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.88%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed Maximum Aggregate Offering Price</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="22%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:22.28%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount of <br>
  Registration Fee</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="16%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.22%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common Stock</font></b></p>
  </td>
  <td width="2%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.4%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,087,577 shares</font></p>
  </td>
  <td width="2%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:18.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.53 <b>(3)(i)</b></font></p>
  </td>
  <td width="2%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.88%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$4,286,416</font></p>
  </td>
  <td width="2%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:22.28%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$458.65</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="16%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:16.22%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common Stock</font></b></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:15.4%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12,517,423
  shares</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:18.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.58 <b>(3)(ii)</b></font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:17.88%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$7,260,105</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:22.28%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$776.83</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="16%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.22%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Total</font></b></p>
  </td>
  <td width="2%" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.4%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:18.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:22.28%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,235.48</font></p>
  </td>
 </tr>
</table>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
registration statement covers shares of our common stock, no par value per
share, issuable pursuant to stock options and other equity incentive awards
under our Amended 2004 Stock Incentive Plan (the &#147;2004 Stock Incentive Plan&#148;)
and our Restated 1995 Stock Incentive Plan (the &#147;Restated 1995 Plan&#148; and
together with the 2004 Stock Incentive Plan, the &#147;Plans&#148;).</p>

<p style="color:windowtext;margin:0pt 0pt .0001pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
registration statement shall also cover an indeterminable number of additional
common shares which may become issuable under the Plans by reason of any stock
dividend, stock split, re-capitalization or any other similar transaction
effected without the receipt of consideration which results in an increase in
the number of the registrant&#146;s outstanding common shares.</p>

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

<p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Proposed Maximum Offering Price Per Share is calculated in accordance with Rule
457(h) of the <i>Securities Act of 1933</i>
, as amended, based upon: (i) the average exercise price of $0.53 per common
share of outstanding options to purchase 8,087,577 common shares that have been issued to date pursuant to
our Plans; and (ii) the average of the bid and asked price of our common stock
on December 19, 2006, being $0.58 per common share, with respect to the
12,517,423 common shares that have been reserved for issuance pursuant to
awards that may be granted under our 2004 Stock Incentive Plan and that are
registered pursuant to this registration statement..</p>

<p style="color:windowtext;margin:11.25pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;color:windowtext;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">
 <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part I</font></b></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INFORMATION REQUIRED IN SECTION 10(A)
PROSPECTUS</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Registration Statement relates to two separate
prospectuses.</font></p>

<p style="color:windowtext;font-size:10.0pt;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10(a) Prospectus</font></u>: Items 1
and 2, from this page, and the documents incorporated by reference pursuant to
Part II, Item 3 of this prospectus, constitute a prospectus that meets the
requirements of Section 10(a) of the <i>Securities
Act of 1933</i>, as amended (the &#147;Securities Act&#148;).</p>

<p style="color:windowtext;font-size:10.0pt;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reoffer Prospectus</font></u>: The material
that follows Item 2, beginning on Page P-1 through P-29, up to but not including
Part II of this Registration Statement, beginning on Page II-1, of which the <b>reoffer prospectus</b> is a part, constitutes a &#147;<b>reoffer prospectus</b>,&#148; prepared in accordance with the
requirements of Part I of Form S-3 under the Securities Act. Pursuant to Instruction
C of Form S-8, the <b>reoffer prospectus</b>
may be used for reoffers or resales of common shares which are deemed to be &#147;control
securities&#148; or &#147;restricted securities&#148; under the Securities Act that have been
acquired by the selling shareholders named in the <b>reoffer
prospectus</b>.</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan
Information.</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The documents containing the information specified in
Item 1 will be sent or given to participants in the 2004 Stock Incentive Plan as specified by Rule 428(b)(1) of the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;). Such documents are
not required to be and are not filed with the Securities and Exchange
Commission (the &#147;SEC&#148;) either as part of this Registration Statement or as
prospectuses or prospectus supplements pursuant to Rule 424. These documents
and the documents incorporated by reference in this Registration Statement
pursuant to Item 3 of Part II of this Form S-8, taken together, constitute a
prospectus that meets the requirements of Section 10(a) of the Securities Act.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant
Information and Employee Plan Annual Information.*</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon written or oral
request, any of the documents incorporated by reference in Item 3 of Part II of
this Registration Statement (which documents are incorporated by reference in
this Section 10(a) Prospectus), other documents required to be delivered to
eligible employees, non-employee directors and consultants, pursuant to Rule
428(b) are available without charge by contacting:</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rodney M. Boucher, Chief Executive Officer<br>
MICROFIELD GROUP, INC.<br>
111 SW Columbia, Suite 480<br>
Portland, Oregon 97201<br>
(503) 419-3580</font></p>

<p style="color:windowtext;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 48.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Information required by Part I to be contained in
Section 10(a) prospectus is omitted from the Registration Statement in
accordance with Rule 428 under the Securities Act of 1933, and Note to Part I
of Form S-8.</b></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">__________</font></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I-</font><font face="Times New Roman">1</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REOFFER PROSPECTUS</font></b></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MICROFIELD GROUP, INC.</font></b></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3,650,000 Shares of Common Stock</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This <b>reoffer prospectus</b> relates to 3,650,000
shares of our common stock, no par value per share, that may be offered and
resold from time to time by certain eligible participants and existing selling
shareholders in our Amended 2004 Stock Incentive Plan (the &#147;2004 Stock
Incentive Plan&#148;) identified in this prospectus for their own account. Eligible
participants in our 2004 Stock Incentive Plan consist of employees, directors,
officers and consultants of our company or its related entities. Selling
shareholders consist and will consist of those eligible participants who are
affiliates of our company (as defined in Rule 405 of the <i>Securities Act of 1933</i>, as amended (the &#147;Securities
Act&#148;)). It is anticipated that the selling shareholders will offer common
shares for sale at prevailing prices on the OTC Bulletin Board on the date of
sale. We will receive no part of the proceeds from sales made under this <b>reoffer prospectus</b>. The selling shareholders
will bear all sales commissions and similar expenses. Any other expenses
incurred by us in connection with the registration and offering and not borne
by the selling shareholders will be borne by us.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The common shares of common
stock will be issued pursuant to awards granted under our 2004 Stock Incentive
Plan and will be &#147;control securities&#148; under the Securities Act before their
sale under this <b>reoffer prospectus</b>.
This <b>reoffer prospectus</b> has been
prepared for the purposes of registering the common shares under the Securities
Act to allow for future sales by selling shareholders on a continuous or
delayed basis to the public without restriction.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling shareholders and
any brokers executing selling orders on their behalf may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act, in which event commissions received
by such brokers may be deemed to be underwriting commissions under the
Securities Act.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock trades on
the Over-The-Counter Bulletin Board under the symbol &#147;MICG.OB&#148; On December 19,
2006, the closing sale price of the common stock was $0.60 per share.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Investing in our common stock
involves risks. See &#147;Risk Factors&#148; on page six of this reoffer prospectus.
These are speculative securities.</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Since our company does not currently
meet the registrant requirements for use of Form S-3, the amount of common
shares which may be resold by means of this reoffer prospectus by each of the
selling stockholders, and any other person with whom he or she is acting in
concert for the purpose of selling securities of our company, must not exceed,
in any three month period, the amount specified in Rule 144(e) promulgated
under the Securities Act.</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY
STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENCE.</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The date of this
prospectus is December 26, 2006</font></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font><font face="Times New Roman">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TABLE OF CONTENTS</font></b></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.06%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="6%" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:6.94%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Page</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.06%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ProspectusSummary_134649" title="Click to goto ">Prospectus Summary</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.18%;">
  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.06%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RiskFactors_134703" title="Click to goto ">Risk Factors</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.18%;">
  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.06%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#CautionaryNoteRegardingForwardloo_143153" title="Click to goto ">Cautionary Note Regarding Forward-Looking Statements</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.18%;">
  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.06%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#DeterminationOfOfferingPrice_143202" title="Click to goto ">Determination Of Offering Price</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.18%;">
  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.06%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#UseOfProceeds_143207" title="Click to goto ">Use of
  Proceeds</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
  </td>
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  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#SellingShareholders_143216" title="Click to goto ">Selling
  Shareholders</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.18%;">
  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>
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  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>
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  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>
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  for Securities Act Liabilities</a></font></p>
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  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font></p>
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  <p align="right" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>
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  </td>
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</table>

<p style="color:windowtext;margin:0pt 0pt .0001pt 72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NO PERSON HAS BEEN
AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN
THOSE CONTAINED IN THIS PROSPECTUS, IN CONNECTION WITH THE OFFERING MADE
HEREBY, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY OTHER PERSON.
NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL UNDER
ANY CIRCUMSTANCES CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE
AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES
OFFERED HEREBY BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR
SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANY PERSON TO WHOM IT IS UNLAWFUL
TO MAKE SUCH OFFER OR SOLICITATION.</font></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PROSPECTUS
SUMMARY</font></b><a name="ProspectusSummary_134649"></a></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following
summary highlights selected information contained in this prospectus. This
summary does not contain all the information you should consider before investing
in the securities. Before making an investment decision, you should read the
entire prospectus carefully, including the &#147;risk factors&#148; section, the
financial statements and the secured convertible notes to the financial
statements.</font></p>

<h4 style="color:windowtext;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Overview</font></b></h4>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We specialize in
the installation of electrical, control, and telecomunications products and
services, and in transactions involving integration of consumers of electricity
into the wholesale electricity markets. We expanded through acquisitions in
2005 from an energy and related technologies and services business to a
business that also provides energy consumers a new source of energy revenues
and savings and the means to achieve such benefits. Included in these
acquisitions are the capabilities to service high voltage facilities including
wind farms and solar energy collection facilities. Two new subsidiaries were
integrated with the Christenson Velagio, Inc. (&#147;CVI&#148;) subsidiary this year.
These subsidiaries are Christenson Electric, Inc. (&#147;CEI&#148;), acquired in July
2005 and EnergyConnect, Inc. (ECI&#148;), acquired in October 2005. In January 2006,
the operations of CVI and CEI were combined and are operating as CEI, Inc.
Currently, CEI and ECI are the remaining wholly-owned operating subsidiaries of
our company.&#160; Our objective is to
leverage our assets and resources and build a viable, profitable, wholesale
power transaction, electrical services, and technology infrastructure business.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have the
ability to deliver the following products and services:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Electrical
and systems engineering and design</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Controls,
lighting, and cabling</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Building
electric service</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Solar,
wind, distributed generation, and substations</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Information
technology networks</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Telecommunications,
computer telephony, and integrated systems</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Life
safety and security systems</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Redistribution
in malls and shopping centers</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Construction,
maintenance, inspection, and upgrades</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Integrated
building controls, wiring, and cabling</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>HVAC,</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Lighting</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Life
safety systems</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Telecommunications
systems integration and infrastructure</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Computer
telephony integration</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Digital
Video CCTV systems</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Enterprise
security systems</p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Wireless
networking solutions</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Information
technology networks</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Voice
/ data systems</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Electrical
construction service</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Buildings
and industrial systems</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Substations</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Wind
farms, solar collectors, and distributed generation</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 75.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Redistribution
in malls and shopping centers</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Software
development</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Commercial
building energy data management, data acquisition, and modeling</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Regional
grid data monitoring, data management, and price forecasting</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Electric
consumer transactional interface, wholesale products, and transaction
management</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Settlement
systems and related protocols</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Electric
Power Transactions</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Service
electric energy, capacity, and reserve needs of regional electric grids</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Service
wholesale electric markets to improve electric supply and delivery efficiencies</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Enable
buildings and industrial consumers to contribute to these services</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEI has been
focused on electrical and technology products and services to customers in the
Portland and Eugene, Oregon markets and the southwest Washington State markets.
With the recent acquisitions our footprint for coordinating, managing,
directing, and/or supervising services to energy consumers is being expanded to
include additional regions in the US. CEI also provides electrical design and
construction services to utilities, grid operators and electric power
generation companies nationally. ECI enables buildings and industrial electric
consumers to contribute to the wholesale electric market, provides the
transaction technologies and processes to integrate consumers into the
wholesale electric market, and uses these capabilities to service regional
electric grid operators with energy, capacity, reserves, and related needs.
Integrating CEI and ECI combines the breadth of services needed to deliver full
service solutions to our customers.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEI has
continuously provided electrical design, engineering, and construction services
for more that 50 years. It now services all of the electrical, control,
lighting, safety, security, and related systems needed for economic and secure
operations of buildings and industrial sites. A substantial portion of CEI
business is repeat business under long-standing relationships with it
customers. CEI operates a fleet of service trucks that supply the electric
related needs of hundreds of customers.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Through its work
on alternative energy projects such as wind farms and solar farms, CEI has been
at the forefront of the current boom in building the alternative energy
distribution infrastructure. CEI will continue its historic businesses
including wind farm electrical construction, maintenance and construction of
substations, and maintenance and construction of distribution and transmission
facilities. CEI also continues to provide services to Bonneville Power
Administration and other major utilities under long-standing contractual
relationships.</font></p>


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<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ECI provides
wholesale electric market transaction services to regional electric grids.
Selected needs of electric grid operators, including energy, capacity, and
reserves have been formed into products that can be delivered through ECI
systems to the grid. ECI technologies, processes, and services enable buildings
and electric consumers to contribute to such wholesale services at levels and
with complexities of service never before achieved. It is anticipated ECI
transaction services will increase the need for many of the services supplied
by CEI before the acquisition.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the fiscal year
ended December 31, 2005, we generated $57,935,035 in revenues and had a net
loss of $77,953,193. This loss included charges of $77,419,759 due to
impairment of our Company&#146;s goodwill and intangibles, and $503,543 for the
revaluation of a warrant liability at December 31, 2005. For the year ended
January 1, 2005, we generated $36,466,618 in revenues and had a net loss of
$6,181,683. As a result of our history of losses and our experiencing
difficulty in generating sufficient cash flow to meet our obligations and
sustain our operations, our auditors, in their report dated February 24, 2006,
have expressed substantial doubt about our ability to continue as going
concern. CEI was acquired on July 20, 2005. Therefore the revenue and net loss
numbers above only include revenue and expenses from that entity from July 20,
2005 through December 31, 2005. ECI was acquired on October 13, 2005; therefore
the revenue and net income amounts mentioned above only include revenue and
expenses of ECI from October 14, 2005 through December 31, 2005.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our principal
offices are located at 111 SW Columbia Ave, Suite 480, Portland, Oregon 97201,
and our telephone number is (503) 419-3580. We are an Oregon corporation. We
maintain websites at www.microfield.com and www.energyconnectinc.com. The
information contained on these websites is not deemed to be a part of this
prospectus.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">This
Offering</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><!-- SET mrlNoTableShading -->Shares of common stock
  outstanding prior to this offering</p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75,552,437</font>(1)</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares of common
  stock issuable upon exercise of outstanding options which may beoffered
  pursuant to this prospectus</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,650,000</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Use of proceeds</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will not receive any proceeds from the sale of
  the shares of common stock offered in this prospectus. We will receive
  proceeds to the extent that currently outstanding options are exercised for
  cash. We will use the exercise proceeds, if any, for working capital and
  general corporate purposes.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Risk Factors</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The purchase of our common stock involves a high
  degree of risk. You should carefully review and consider &#147;Risk Factors&#148;
  beginning on page 6.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="35%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.66%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Over-The Counter
  Bulletin Board Stock Exchange Symbol</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:60.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MICG.OB</font></p>
  </td>
 </tr>
</table>

<p style="color:windowtext;margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1) As of November
30, 2006. Does not include shares of common stock issuable upon exercise of
outstanding options or warrants.</font></p>


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<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RISK FACTORS</font></b><a name="RiskFactors_134703"></a></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This investment
has a high degree of risk. Before you invest you should carefully consider the
risks and uncertainties described below and the other information in this
prospectus. If any of the following risks actually occur, our business,
operating results and financial condition could be harmed and the value of our
stock could go down. This means you could lose all or a part of your
investment.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Risks
Relating to Our Business</font></u></b></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">We
Have a History Of Losses Which May Continue and Which May Negatively Impact</font></b>
<b>Our Ability to Achieve Our Business
Objectives.</b></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b>We
incurred an operating loss of $4,273,000 for the nine months ended
September&nbsp;30, 2006 and net losses of $77,953,193 and $6,181,683 for the
years ended December&nbsp;31, 2005 and January&nbsp;1, 2005, respectively. The
loss for the nine months ended September&nbsp;30, 2006 includes expenses of
$1,649,000 due to non-cash charges for stock based compensation and
amortization of intangible assets. Of the loss amount in 2005, $77,420,000 was
due to a non-cash write-off of impaired goodwill from the ECI transaction, and
other intangible asset, non-cash impairment charges. We cannot assure you that
we can achieve or sustain profitability on a quarterly or annual basis in the future.
Our operations are subject to the risks and competition inherent in the
establishment of a business enterprise. There can be no assurance that future
operations will be profitable. Revenues and profits, if any, will depend upon
various factors. Additionally, as we continue to incur losses, our accumulated
deficit will continue to increase, which might make it harder for us to obtain
financing in the future. We may not achieve our business objectives and the
failure to achieve such goals would have an adverse impact on us, which could
result in reducing or terminating our operations.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">If
We Experience Continuing Losses and Are Unable to Obtain Additional Funding,
Our Business Operations Will be</font></b>  <b>Harmed and If We Do Obtain Additional Financing Our Then Existing
Shareholders</b>  <b>May Suffer
Substantial Dilution.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may require additional funds to sustain and expand
our research and development activities. Additional capital may be required to
effectively support the operations and to otherwise implement our overall
business strategy. Even if we do receive additional financing, it may not be
sufficient to sustain or expand our research and development operations or
continue our business operations.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There can be no
assurance that financing will be available in amounts or on terms acceptable to
us, if at all. The inability to obtain additional capital will restrict our
ability to grow and may reduce our ability to continue to conduct business
operations. If we are unable to obtain additional financing, we will likely be
required to curtail our research and development plans. Any additional equity
financing may involve substantial dilution to our then existing shareholders.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
Independent Registered Public Accounting Firm Has Expressed Substantial</font></b>
<b>Doubt About Our Ability to Continue As a
Going Concern, Which May Hinder Our</b>  <b>Ability to Obtain Future Financing.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:14.4pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In their report dated February 24, 2006, our
independent registered public accounting firm stated that our financial
statements for the year ended December 31, 2005 were prepared assuming that we
would continue as a going concern. Our ability to continue as a going concern
is an issue raised due to our incurring net losses of $77,953,193 and
$6,181,683, for the years ended December 31, 2005 and January 1, 2005, respectively.
With the funds obtained in the June 30, 2006 private placement, our ability to
continue as a going concern was greatly enhanced. Our continued viability is
subject to our ability to generate profits&#160;
to sustain the operating cash flow needs for future periods.&#160; Our continued net operating losses increase
the difficulty in meeting such goals and there can be no assurances that such
methods will prove successful.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Many
Of Our Competitors Are Larger and Have Greater Financial and Other</font></b>
<b>Resources than We Do and Those Advantages
Could Make It Difficult For Us to</b>  <b>Compete
With Them.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The electrical
products and services industry is extremely competitive and includes several
companies that have achieved substantially greater market shares than we have,
have longer operating histories, have larger customer bases, and have
substantially greater financial, development and marketing resources than we
do. If overall demand for our products should decrease it could have a
materially adverse affect on our operating results.</font></p>


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<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The
Failure To Manage Our Growth In Operations And Acquisitions Of New Product</font></b>
<b>Lines And New Businesses Could Have A
Material Adverse Effect On Us.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The expected
growth of our operations (as to which no representation can be made) will place
a significant strain on our current management resources. To manage this
expected growth, we will need to improve our:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>operations
and financial systems;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures
and controls; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>training
and management of our employees.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our future growth
may be attributable to acquisitions of new product lines and new businesses. We
expect that future acquisitions, if successfully consummated, will create
increased working capital requirements, which will likely precede by several
months any material contribution of an acquisition to our net income.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our failure to
manage growth or future acquisitions successfully could seriously harm our
operating results. Also, acquisition costs could cause our quarterly operating
results to vary significantly. Furthermore, our stockholders would be diluted
if we financed the acquisitions by incurring convertible debt or issuing
securities.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we
currently only have operations within the United States, if we were to acquire
an international operation; we will face additional risks, including:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160; Difficulties in staffing, managing and
integrating international operations due to language, cultural or other
differences;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160; Different or conflicting regulatory or
legal requirements;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160; Foreign currency fluctuations; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160; Diversion of significant time and
attention of our management.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Potential
future acquisitions could be difficult to integrate, disrupt our</font></b>
<b>business, dilute stockholder value and
adversely affect our operating results.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since September
2004, we have acquired three companies and we intend to further expand our
operations through targeted, strategic acquisitions over time. This may require
significant management time and financial resources because we may need to
integrate widely dispersed operations with distinct corporate cultures. Our
failure to manage future acquisitions successfully could seriously harm our
operating results. Also, acquisition costs could cause our quarterly operating
results to vary significantly. Furthermore, our stockholders would be diluted
if we financed the acquisitions by incurring convertible debt or issuing
securities.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Goodwill
Recorded On Our Balance Sheet May Become Impaired, Which Could Have A</font></b>
<b>Material Adverse Effect On Our Operating
Results.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a result of
each of the acquisitions we have been a party to, we have recorded a
significant amount of goodwill. As required by Statement of Financial
Accounting Standards (SFAS) No. 142, &#147;Goodwill and Intangible Assets,&#148; we
annually evaluate the potential impairment of goodwill that was recorded at
each acquisition date. Circumstances could change which would give rise to an
impairment of the value of that recorded goodwill. This potential impairment
would be charged as an expense to the statement of operations which could have
a material adverse effect on our operating results. For the twelve months ended
December 31, 2005, we wrote off, approximately $77 million of goodwill due to
impairment testing of this asset.&#160; No
goodwill or intangible asset value was written off in the nine months ended
September&nbsp;30, 2006.</font></p>


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<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">If
We Are Unable to Retain the Services of Messrs. Boucher and Walter, or If We</font></b>
<b>Are Unable to Successfully Recruit Qualified
Managerial and Sales Personnel</b>  <b>Having
Experience in Business, We May Not Be Able to Continue Our Operations.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our success depends
to a significant extent upon the continued service of Mr. Rodney M. Boucher,
our Chief Executive Officer and Mr. A. Mark Walter, our President. We do not
have employment agreements with Messrs. Boucher or Walter. Loss of the services
of Messrs. Boucher or Walter could have a material adverse effect on our
growth, revenues, and prospective business. We do not maintain key-man
insurance on the life of Messrs. Boucher or Walter. We are not aware of any
named executive officer or director who has plans to leave us or retire. In
addition, in order to successfully implement and manage our business plan, we
will be dependent upon, among other things, successfully recruiting qualified
managerial and sales personnel having experience in business. Competition for
qualified individuals is intense. There can be no assurance that we will be
able to find, attract and retain existing employees or that we will be able to
find, attract and retain qualified personnel on acceptable terms.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
success is dependent on the growth in energy management and curtailment</font></b>
<b>programs, and the continued need for
electrical construction and technology</b>  <b>services, and to the extent that such growth slows and the need for
services</b>  <b>curtail , our business
may be harmed.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The construction
services industry has experienced a drop in demand since 2000 both in the
United States and internationally. Recently, however, that trend has reversed
in response to a turnaround in the capital markets, renewed growth in the
construction industry, passage of favorable energy tax legislation by Congress,
and a vibrant real estate market. It is difficult to predict whether these
changes will result in continued economic improvement in the industries which
our company serves. If the rate of growth should slow down, or end users reduce
their capital investments in construction related products, our operating
results may decline which could cause a decline in our profits.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
quarterly results fluctuate and may cause our stock price to decline.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our quarterly
operating results have fluctuated in the past and will likely fluctuate in the
future. As a result, we believe that period to period comparisons of our
results of operations are not a good indication of our future performance. A
number of factors, many of which are outside of our control, are likely to
cause these fluctuations.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The factors
outside of our control include:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Construction
and energy market conditions and economic conditions generally;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Timing
and volume of customers&#146; specialty construction projects;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
timing and size of construction projects by end users;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Fluctuations
in demand for our services;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Changes
in our mix of customers&#146; projects and business activities;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
length of sales cycles;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>While opportunities for transactional revenue
is higher in cold weather months adverse weather conditions,
particularly during the winter season, could effect our ability to render
services in certain regions of the United States;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
ability of certain customers to sustain capital resources to pay their trade
accounts receivable balances;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reductions
in the prices of services offered by our competitors; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Costs
of integrating technologies or businesses that we add.</p>


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<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The factors
substantially within our control include:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Changes
in the actual and estimated costs and time to complete fixed-price,
time-certain projects that may result in revenue adjustments for contracts
where revenue is recognized under the percentage of completion method;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
timing of expansion into new markets;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Costs
incurred to support internal growth and acquisitions;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Fluctuations
in operating results caused by acquisitions; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 37.5pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
timing and payments associated with possible acquisitions.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Because our
operating results may vary significantly from quarter to quarter, our operating
results may not meet the expectations of securities analysts and investors, and
our common stock could decline significantly which may expose us to risks of
securities litigation, impair our ability to attract and retain qualified
individuals using equity incentives and make it more difficult to complete
acquisitions using equity as consideration.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Failure
to keep pace with the latest technological changes could result in</font></b>
<b>decreased revenues.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The market for our
services is partially characterized by rapid change and technological
improvements. Failure to respond in a timely and cost-effective way to these
technological developments could result in serious harm to our business and
operating results. We have derived, and we expect to continue to derive, a
significant portion of our revenues from technology based products. As a
result, our success will depend, in part, on our ability to develop and market
product and service offerings that respond in a timely manner to the
technological advances of our customers, evolving industry standards and
changing client preferences.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Failure
to properly manage projects may result in costs or claims.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our engagements
often involve large scale, highly complex projects utilizing leading
technology. The quality of our performance on such projects depends in large
part upon our ability to manage the relationship with our customers, and to
effectively manage the project and deploy appropriate resources, including
third-party contractors, and our own personnel, in a timely manner. Any defects
or errors or failure to meet clients&#146; expectations could result in claims for
substantial damages against us. Our contracts generally limit our liability for
damages that arise from negligent acts, error, mistakes or omissions in
rendering services to our clients. However, we cannot be sure that these
contractual provisions will protect us from liability for damages in the event
we are sued. In addition, in certain instances, we guarantee customers that we
will complete a project by a scheduled date or that the project will achieve
certain performance standards. As a result, we often have to make judgments
concerning time and labor costs. If the project experiences a problem, we may
not be able to recover the additional costs we will incur, which could exceed
revenues realized from a project. Finally, if we miscalculate the resources or
time we need to complete a project with capped or fixed fees, our operating
results could seriously decline.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">During
the ordinary course of our business, we may become subject to lawsuits</font></b>
<b>or indemnity claims, which could materially
and adversely affect our business</b>  <b>and
results of operations.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have in the
past been, and may in the future be, named as a defendant in lawsuits, claims
and other legal proceedings during the ordinary course of our business. These
actions may seek, among other things, compensation for alleged personal injury,
workers&#146; compensation, employment discrimination, breach of contract, property
damage, punitive damages, civil penalties or other losses, consequential
damages or injunctive or declaratory relief. In addition, pursuant to our
service arrangements, we generally indemnify our customers for claims related
to the services we provide thereunder. Furthermore, our services are integral to
the operation and performance of the electric distribution and transmission
infrastructure. As a result, we may become subject to lawsuits or claims for
any failure of the systems that we work on, even if our services are not the
cause for such failures. In addition, we may incur civil and criminal
liabilities to the extent that our services contributed to any property damage
or blackout. With respect to such lawsuits, claims, proceedings and
indemnities, we have and will accrue reserves in accordance with generally
accepted accounting principles. In the event that such actions or indemnities
are ultimately resolved unfavorably at amounts exceeding our accrued reserves,
or at material amounts, the outcome could materially and adversely affect our
reputation, business and results of operations. In addition, payments of
significant amounts, even if reserved, could adversely affect our liquidity
position.</font></p>


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<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
failure to comply with, or the imposition of liability under, environmental</font></b>
<b>laws and regulations could result in
significant costs.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our facilities and
operations, including fueling and truck maintenance, repair, washing and
final-stage construction, are subject to various environmental laws and
regulations relating principally to the use, storage and disposal of solid and
hazardous wastes and the discharge of pollutants into the air, water and land.
Violations of these requirements, or of any permits required for our
operations, could result in significant fines or penalties. We are also subject
to laws and regulations that can impose liability, sometimes without regard to
fault, for investigating or cleaning up contamination, as well as for damages
to property or natural resources and for personal injury arising out of such
contamination. Such liabilities may also be joint and several, meaning that we
could be held responsible for more than our share of the liability involved, or
even the entire amount. The presence of environmental contamination could also
adversely affect our ongoing operations. In addition, we perform work in
wetlands and other environmentally sensitive areas, as well as in different
types of underground environments. In the event we fail to obtain or comply
with any permits required for such activities, or such activities cause any environmental
damage, we could incur significant liability. We have incurred costs in
connection with environmental compliance, remediation and/or monitoring, and we
anticipate that we will continue to do so. Discovery of additional
contamination for which we are responsible, the enactment of new laws and
regulations, or changes in how existing requirements are enforced, could
require us to incur additional costs for compliance or subject us to unexpected
liabilities.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The
electric infrastructure servicing business is subject to seasonal</font></b>
<b>variations, which may cause our operating
results to vary significantly from</b>  <b>period
to period and could cause the market price of our stock to fall.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Due to the fact
that a significant portion of our business is performed outdoors, our results
of operations are subject to seasonal variations. These seasonal variations
affect our core activities of maintaining, upgrading and extending electrical
distribution powerlines and not only our storm restoration services. Generally,
during the winter months, demand for new work and maintenance services may be
lower due to reduced construction activity during inclement weather, while
demand for electrical service and repairs may be higher due to damage caused by
such weather conditions. Additionally, more energy management transactional
revenues are produced in peak energy usage months during the winter and summer.
Seasonal variations will cause fluctuations in our revenues during the year. As
a result, operating results may vary significantly from period to period. If
our operating results fall below the public&#146;s or analysts&#146; expectations in some
future period or periods, the market price of our common stock will likely fall
in such period or periods.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Employee
strikes and other labor-related disruptions may adversely affect our</font></b>
<b>operations.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our electric
services business is labor intensive, requiring large numbers of electricians,
installers and other personnel. Subject to seasonality, approximately 85-95% of
our workforce is unionized. Strikes or labor disputes with our unionized
employees may adversely affect our ability to conduct our business. If we are
unable to reach agreement with any of our unionized work groups on future
negotiations regarding the terms of their collective bargaining agreements, or
if additional segments of our workforce become unionized, we may be subject to
work interruptions or stoppages. Any of these events would be disruptive to our
operations and could harm our business.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
Trademark and Other Intellectual Property Rights May not be Adequately</font></b>
<b>Protected Outside the United States,
Resulting in Loss of Revenue.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe that
our trademarks, whether licensed or owned by us, and other proprietary rights
are important to our success and our competitive position. In the course of any
potential international expansion, we may, however, experience conflict with
various third parties who acquire or claim ownership rights in certain
trademarks. We cannot assure you that the actions we have taken to establish
and protect these trademarks and other proprietary rights will be adequate to
prevent imitation of our products by others or to prevent others from seeking
to block sales of our products as a violation of the trademarks and proprietary
rights of others. Also, we cannot assure you that others will not assert rights
in, or ownership of, trademarks and other proprietary rights of ours or that we
will be able to successfully resolve these types of conflicts to our
satisfaction. In addition, the laws of certain foreign countries may not
protect proprietary rights to the same extent, as do the laws of the United
States.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Intellectual
Property Litigation Could Harm Our Business.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Litigation
regarding patents and other intellectual property rights is extensive in the
technology industry. In the event of an intellectual property dispute, we may
be forced to litigate. This litigation could involve proceedings instituted by
the U.S. Patent and Trademark Office or the International Trade Commission, as
well as proceedings brought directly by affected third parties. Intellectual
property litigation can be extremely expensive, and these expenses, as well as
the consequences should we not prevail, could seriously harm our business.</font></p>


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<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If a third party
claims an intellectual property right to technology we use, we might need to
discontinue an important product or product line, alter our products and
processes, pay license fees or cease our affected business activities. Although
we might under these circumstances attempt to obtain a license to this
intellectual property, we may not be able to do so on favorable terms, or at
all. We are currently not aware of any intellectual property rights that are
being infringed nor have we received notice from a third party that we may be
infringing on any of their patents.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Furthermore, a
third party may claim that we are using inventions covered by the third party&#146;s
patent rights and may go to court to stop us from engaging in our normal
operations and activities, including making or selling our product candidates.
These lawsuits are costly and could affect our results of operations and divert
the attention of managerial and technical personnel. There is a risk that a
court would decide that we are infringing the third party&#146;s patents and would
order us to stop the activities covered by the patents. In addition, there is a
risk that a court will order us to pay the other party damages for having
violated the other party&#146;s patents. The technology industry has produced a
proliferation of patents, and it is not always clear to industry participants,
including us, which patents cover various types of products or methods of use.
The coverage of patents is subject to interpretation by the courts, and the
interpretation is not always uniform. If we are sued for patent infringement,
we would need to demonstrate that our products or methods of use either do not
infringe the patent claims of the relevant patent and/or that the patent claims
are invalid, and we may not be able to do this. Proving invalidity, in
particular, is difficult since it requires a showing of clear and convincing
evidence to overcome the presumption of validity enjoyed by issued patents.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Because some
patent applications in the United States may be maintained in secrecy until the
patents are issued, because patent applications in the United States and many
foreign jurisdictions are typically not published until eighteen months after
filing, and because publications in the scientific literature often lag behind
actual discoveries, we cannot be certain that others have not filed patent
applications for technology covered by our licensors&#146; issued patents or our
pending applications or our licensors&#146; pending applications or that we or our
licensors were the first to invent the technology. Our competitors may have
filed, and may in the future file, patent applications covering technology
similar to ours. Any such patent application may have priority over our or our
licensors&#146; patent applications and could further require us to obtain rights to
issued patents covering such technologies. If another party has filed a United
States patent application on inventions similar to ours, we may have to
participate in an interference proceeding declared by the United States Patent
and Trademark Office to determine priority of invention in the United States.
The costs of these proceedings could be substantial, and it is possible that
such efforts would be unsuccessful, resulting in a loss of our United States
patent position with respect to such inventions.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Some of our
competitors may be able to sustain the costs of complex patent litigation more
effectively than we can because they have substantially greater resources. In
addition, any uncertainties resulting from the initiation and continuation of
any litigation could have a material adverse effect on our ability to raise the
funds necessary to continue our operations.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Risks
Relating to Our Common Stock</font></u></b></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">If
We Fail to Remain Current on Our Reporting Requirements, We Could be Removed</font></b>
<b>From the OTC Bulletin Board Which Would Limit
the Ability of Broker-Dealers to</b>  <b>Sell
Our Securities and the Ability of Stockholders to Sell Their Securities in</b>
<b>the Secondary Market.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Companies trading
on the OTC Bulletin Board, such as us, must be reporting issuers under Section
13 or 15(d) of the Securities Exchange Act of 1934, as amended, and must be
current in their reports under Section 13, in order to maintain price quotation
privileges on the OTC Bulletin Board. If we fail to remain current on our
reporting requirements, we could be removed from the OTC Bulletin Board. As a
result, the market liquidity for our securities could be severely adversely
affected by limiting the ability of broker-dealers to sell our securities and
the ability of stockholders to sell their securities in the secondary market.
Prior to May 2001 and new management, we were delinquent in our reporting
requirements, having failed to file our quarterly and annual reports for the
years ended 1998 &#151; 2000 (except the quarterly reports for the first two
quarters of 1999). We have also been delinquent in filing recent quarterly and
annual reports, the last being our 10-KSB for the year 2004. There can be no
assurance that in the future we will always be current in our reporting
requirements.</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Our
Common Stock is Subject to the &#147;Penny Stock&#148; Rules of the SEC and the</font></b>
<b>Trading Market in Our Securities is Limited,
Which Makes Transactions in Our</b>  <b>Stock
Cumbersome and May Reduce the Value of an Investment in Our Stock.</b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Securities and
Exchange Commission has adopted Rule 15g-9 which establishes the definition of
a &#147;penny stock,&#148; for the purposes relevant to us, as any equity security that
has a market price of less than $5.00 per share or with an exercise price of
less than $5.00 per share, subject to certain exceptions. For any transaction
involving a penny stock, unless exempt, the rules require:</font></p>


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<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 14.9pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160; that a broker or dealer approve a person&#146;s
account for transactions in penny stocks; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
broker or dealer receive from the investor a written agreement to the
transaction, setting forth the identity and quantity of the penny stock to be
purchased.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to
approve a person&#146;s account for transactions in penny stocks, the broker or
dealer must:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>obtain
financial information and investment experience objectives of the person; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>make
a reasonable determination that the transactions in penny stocks are suitable
for that person and the person has sufficient knowledge and experience in
financial matters to be capable of evaluating the risks of transactions in
penny stocks.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The broker or
dealer must also deliver, prior to any transaction in a penny stock, a
disclosure schedule prescribed by the Commission relating to the penny stock
market, which, in highlight form:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>sets
forth the basis on which the broker or dealer made the suitability
determination; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-15.1pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>that
the broker or dealer received a signed, written agreement from the investor
prior to the transaction.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Generally, brokers
may be less willing to execute transactions in securities subject to the &#147;penny
stock&#148; rules. This may make it more difficult for investors to dispose of our
common stock and cause a decline in the market value of our stock.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure also
has to be made about the risks of investing in penny stocks in both public
offerings and in secondary trading and about the commissions payable to both
the broker-dealer and the registered representative, current quotations for the
securities and the rights and remedies available to an investor in cases of
fraud in penny stock transactions. Finally, monthly statements have to be sent
disclosing recent price information for the penny stock held in the account and
information on the limited market in penny stocks.</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS</font></b></strong><a name="CautionaryNoteRegardingForwardloo_143153"></a></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We and our
representatives may from time to time make written or oral statements that are &#147;forward-looking,&#148;
including statements contained in this prospectus and other filings with the
Securities and Exchange Commission, reports to our stockholders and news releases.
All statements that express expectations, estimates, forecasts or projections
are forward-looking statements. In addition, other written or oral statements
which constitute forward-looking statements may be made by us or on our behalf.
Words such as &#147;expects,&#148; &#147;anticipates,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148; &#147;seeks,&#148;
&#147;estimates,&#148; &#147;projects,&#148; &#147;forecasts,&#148; &#147;may,&#148; &#147;should,&#148; variations of such words
and similar expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and involve risks,
uncertainties, and assumptions which are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or
forecasted in or suggested by such forward-looking statements. Among the
important factors on which such statements are based are assumptions concerning
our ability to obtain additional funding, our ability to compete against our
competitors, our ability to integrate our acquisitions and our ability to
attract and retain key employees.</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DETERMINATION
OF OFFERING PRICE</font></b><a name="DeterminationOfOfferingPrice_143202"></a></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling security holders
may sell the common shares issued to them from time-to-time at prices and at
terms then prevailing or at prices related to the then current market price, or
in negotiated transactions.</font></p>


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<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">USE OF
PROCEEDS</font></b><a name="UseOfProceeds_143207"></a></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will not receive any
proceeds from the sale of common shares by the selling shareholders pursuant to
this prospectus. All of the 3,650,000 common shares which may be offered
pursuant to this <b>reoffer prospectus</b>
underlie stock options granted under our 2004 Stock Incentive Plan. All
proceeds, if any, from the exercise of these future options will be added to
our working capital.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling shareholders
will receive all proceeds from the sales of these common shares, and they will
pay any and all expenses incurred by them for brokerage, accounting or tax
services (or any other expenses incurred by them in disposing of their common
shares).</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SELLING
SHAREHOLDERS</font></b><a name="SellingShareholders_143216"></a></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling shareholders named in this prospectus (the
&#147;Selling Shareholders&#148;) are offering all of the 3,650,000 shares offered through this prospectus. The common
shares are comprised of 3,650,000 shares
that may be sold pursuant to the exercise of stock options granted to the
selling shareholders pursuant to our 2004 Stock Incentive Plan.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If, subsequent to the date of this <b>reoffer prospectus</b>, we grant any further awards under the
2004 Stock Incentive Plan to any Eligible Participants who are affiliates of
our company (as defined in Rule 405 under the Securities Act), Instruction C of
Form S-8 requires that we supplement this <b>reoffer prospectus</b>
with the names of such affiliates and the amounts of securities to be reoffered
by them as selling stockholders.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following table provides, as of November 30, 2006,
information regarding the beneficial ownership of our common shares held by
each of the selling shareholders, including:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
number of common shares owned by each selling shareholder prior to this
offering;</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt 50.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160; the total
number of common shares that are to be offered by each selling shareholder;</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
total number of common shares that will be owned by each selling shareholder
upon completion of the offering;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
percentage owned by each selling shareholder; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
identity of the beneficial holder of any entity that owns the common shares.</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Information with respect to beneficial ownership is
based upon information obtained from the selling shareholders. Information with
respect to &#147;Shares Beneficially Owned Prior to the Offering&#148; includes the
shares issuable upon exercise of the stock options held by the selling
shareholders to the extent these options are exercisable within 60 days of
November 30, 2006. The &#147;Number of Shares Being Offered&#148; includes the common
shares that may be acquired by the selling shareholders pursuant to the
exercise of stock options granted to the selling shareholders pursuant to our
2004 Stock Incentive Plan. Information with respect to &#147;Shares Beneficially
Owned After the Offering&#148; assumes the sale of all of the common shares offered
by this prospectus and no other purchases or sales of our common shares by the
selling shareholders. Except as described below and to our knowledge, the named
selling shareholder beneficially owns and has sole voting and investment power
over all common shares or rights to these common shares.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Because the selling shareholders may offer all or part
of the common shares currently owned or the common shares received upon
exercise of the options, which they own pursuant to the offering contemplated
by this <b>reoffer prospectus</b>, and because its
offering is not being underwritten on a firm commitment basis, no estimate can
be given as to the amount of options that will be held upon termination of this
offering. The common shares currently owned and the common shares received upon
exercise of the options offered by this <b>reoffer prospectus</b>
may be offered from time to time by the selling shareholders named below.</font></p>


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<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="28%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="26%" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:26.02%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Shares&nbsp;Beneficially&nbsp;Owned<br>
  Prior&nbsp;To&nbsp;This&nbsp;Offering&nbsp;(1)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of<br>
  Shares&nbsp;Being</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="25%" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:25.82%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Shares&nbsp;Beneficially&nbsp;Owned&nbsp;Upon<br>
  Completion&nbsp;of&nbsp;the&nbsp;Offering&nbsp;(1)</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="28%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p align="left" style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Name&nbsp;of&nbsp;Selling&nbsp;Shareholder</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Percent&nbsp;(2)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Offered</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Percent&nbsp;(2)</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">William
  McCormick</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,226,722 </font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.9</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,250,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">389,236</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Mark
  Walter</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">483,333 </font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,200,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">166,666</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Mike
  Stansell</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">127,100 </font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77,100</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Randy
  Reed</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100,000 </font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Gary D.
  Conley</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50,000 </font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7)</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Totals:</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2,987,155</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.62%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3,650,000</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">633,002</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.42%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:11.7%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<div style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>less
then 1%.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">**</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
address for the above listed officers and directors is c/o Microfield Group,
Inc., 111 SW Columbia, Suite 400, Portland, OR 97201.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Under
Rule 13d-3, a beneficial owner of a security includes any person who, directly
or indirectly, through any contract, arrangement, understanding, relationship,
or otherwise has or shares: (i) voting power, which includes the power to vote,
or to direct the voting of shares; and (ii) investment power, which includes
the power to dispose or direct the disposition of shares. Certain shares may be
deemed to be beneficially owned by more than one person (if, for example,
persons share the power to vote or the power to dispose of the shares). In
addition, shares are deemed to be beneficially owned by a person if the person
has the right to acquire the shares (for example, upon exercise of an option)
within 60 days of the date as of which the information is provided. In
computing the percentage ownership of any person, the amount of shares
outstanding is deemed to include the amount of shares beneficially owned by
such person (and only such person) by reason of these acquisition rights. As a
result, the percentage of outstanding shares of any person as shown in this
table does not necessarily reflect the person&#146;s actual ownership or voting
power with respect to the number of common shares actually outstanding on
November 30, 2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Applicable
percentage of ownership is based on 75,552,437 common shares outstanding as of
November 30, 2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Includes
263,158 common equivalent preferred shares outstanding as of November 30, 2006
and 1,837,486 warrants and options convertible into common stock within 60 days
after November 30, 2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Includes
483,333 options convertible into common stock within 60 days after November 30,
2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Includes
50,000 options convertible into common stock within 60 days after November 30,
2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Includes
100,000 options convertible into common stock within 60 days after November 30,
2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Includes
50,000 options convertible into common stock within 60 days after November 30,
2006.</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Since our company does not currently
meet the registrant requirements for use of Form S-3, the amount of common
shares which may be resold by means of this reoffer prospectus by each of the
selling stockholders, and any other person with whom he or she is acting in
concert for the purpose of selling securities of our company, must not exceed,
in any three month period, the amount specified in Rule 144(e) promulgated
under the Securities Act.</font></b></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font><font face="Times New Roman">14</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='P-14',FILE='C:\fc\36010518252_D11241_1582162\26204-1-ce.htm',USER='jmsproofassembler',CD='Dec 26 10:05 2006' -->
<br clear="all" style="page-break-before:always;">
 <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"></p>


<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PLAN OF
DISTRIBUTION</font></b><a name="PlanOfDistribution_143227"></a></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Timing of Sales</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling stockholders may offer and sell the shares
covered by this prospectus at various times. The selling stockholders will act
independently of our company in making decisions with respect to the timing,
manner and size of each sale.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">No Known Agreements to Resell the Shares</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To our knowledge,
no selling stockholder has any agreement or understanding, directly or
indirectly, with any person to resell the common shares covered by this
prospectus.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Offering Price</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The sales price offered by the selling stockholders to
the public may be:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
market price prevailing at the time of sale;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
price related to such prevailing market price; or</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such
other price as the selling shareholders determine from time to time.</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Manner of Sale</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The common shares may be sold by means of one or more
of the following methods:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
block trade in which the broker-dealer so engaged will attempt to sell the
common shares as agent, but may position and resell a portion of the block as
principal to facilitate the transaction;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>purchases
by a broker-dealer as principal and resale by that broker-dealer for its
account pursuant to this prospectus;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ordinary
brokerage transactions in which the broker solicits purchasers;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>through
options, swaps or derivatives;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in
transactions to cover short sales;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>privately
negotiated transactions; or</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 68.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in
a combination of any of the above methods.</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling shareholders may sell their common shares
directly to purchasers or may use brokers, dealers, underwriters or agents to
sell their common shares. Brokers or dealers engaged by the selling
shareholders may arrange for other brokers or dealers to participate. Brokers
or dealers may receive commissions, discounts or concessions from the selling
shareholders, or, if any such broker-dealer acts as agent for the purchaser of
common shares, from the purchaser in amounts to be negotiated immediately prior
to the sale. The compensation received by brokers or dealers may, but is not
expected to, exceed that which is customary for the types of transactions involved.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Broker-dealers may agree with a selling shareholder to
sell a specified number of common shares at a stipulated price per common
share, and, to the extent the broker-dealer is unable to do so acting as agent
for a selling shareholder, to purchase as principal any unsold common shares at
the price required to fulfill the broker-dealer commitment to the selling
shareholder.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Broker-dealers who acquire common shares as principal
may thereafter resell the common shares from time to time in transactions, which
may involve block transactions and sales to and through other broker-dealers,
including transactions of the nature described above, in the over-the-counter
market or otherwise at prices and on terms then prevailing at the time of sale,
at prices then related to the then-current market price or in negotiated
transactions. In connection with resales of the common shares, broker-dealers
may pay to or receive from the purchasers of shares commissions as described
above.</font></p>


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<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If our selling shareholders enter into arrangements
with brokers or dealers, as described above, we are obligated to file a
post-effective amendment to this registration statement disclosing such
arrangements, including the names of any broker-dealers acting as underwriters.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling shareholders and any broker-dealers or
agents that participate with the selling shareholders in the sale of the common
shares may be deemed to be &#147;underwriters&#148; within the meaning of the Securities
Act. In that event, any commissions received by broker-dealers or agents and
any profit on the resale of the common shares purchased by them may be deemed
to be underwriting commissions or discounts under the Securities Act.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Sales Pursuant to Rule 144</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any common shares covered by this prospectus which
qualify for sale pursuant to Rule 144 under the Securities Act may be sold
under Rule 144 rather than pursuant to this prospectus.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Regulation&nbsp;M</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling shareholders must comply with the
requirements of the Securities Act and the Exchange Act in the offer and sale
of the common stock. In particular we will advise the selling shareholders that
the anti-manipulation rules of Regulation&nbsp;M under the Exchange Act may
apply to sales of common shares in the market and to the activities of the
selling shareholders and their affiliates. Regulation&nbsp;M under the Exchange
Act prohibits, with certain exceptions, participants in a distribution from
bidding for, or purchasing for an account in which the participant has a
beneficial interest, any of the securities that are the subject of the
distribution.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accordingly, during such times as a selling
shareholder may be deemed to be engaged in a distribution of the common stock,
and therefore be considered to be an underwriter, the selling shareholder must
comply with applicable law and, among other things:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>may
not engage in any stabilization activities in connection with our common stock;</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>may
not cover short sales by purchasing shares while the distribution is taking
place; and</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:11.25pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>may
not bid for or purchase any of our securities or attempt to induce any person
to purchase any of our securities other than as permitted under the Exchange
Act.</p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, we will make copies of this prospectus
available to the selling shareholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Penny Stock Rules</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The SEC has adopted regulations which generally define
&#147;penny stock&#148; to be any equity security that has a market price (as defined) of
less than $5.00 per share or an exercise price of less than $5.00 per share,
subject to certain exceptions. Our securities are covered by the penny stock
rules, which impose additional sales practice requirements on broker-dealers
who sell to persons other than established customers and &#147;institutional
accredited investors.&#148; The term &#147;institutional accredited investor&#148; refers
generally to those accredited investors who are not natural persons and fall
into one of the categories of accredited investor specified in subparagraphs
(1), (2), (3), (7) or (8) of Rule&nbsp;501 of Regulation&nbsp;D promulgated
under the Securities Act, including institutions with assets in excess of
$5,000,000.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The penny stock rules require a broker-dealer, prior
to a transaction in a penny stock not otherwise exempt from the rules, to
deliver a standardized risk disclosure document in a form required by the
Securities and Exchange Commission, obtain from the customer a signed and dated
acknowledgement of receipt of the disclosure document and to wait two business
days before effecting the transaction. The risk disclosure document provides
information about penny stocks and the nature and level of risks in the penny
stock market. The broker-dealer also must provide the customer with current bid
and offer quotations for the penny stock, the compensation of the broker-dealer
and its salesperson in the transaction and monthly account statements showing
the market value of each penny stock held in the customer&#146;s account.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The bid and offer quotations, and the broker-dealer
and salesperson compensation information, must be given to the customer orally
or in writing prior to effecting the transaction and must be given to the
customer in writing before or with the customer&#146;s confirmation. In addition,
the penny stock rules require that prior to a transaction in a penny stock not
otherwise exempt from these rules, the broker-dealer must make a special
written determination that the penny stock is a suitable investment for the
purchaser and receive the purchaser&#146;s written agreement to the transaction.</font></p>


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<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These disclosure requirements may have the effect of
reducing the level of trading activity in the secondary market for the stock
that is subject to these penny stock rules. Consequently, these penny stock
rules may affect the ability of broker-dealers to trade our securities. We
believe that the penny stock rules discourage investor interest in and limit
the marketability of our common stock.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">State Securities Laws</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the securities laws of some states, the common
shares may be sold in such states only through registered or licensed brokers
or dealers. In addition, in some states the common shares may not be sold
unless the shares have been registered or qualified for sale in the state or an
exemption from registration or qualification is available and is complied with.</font></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Expenses of Registration</font></b></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are bearing all costs relating to the registration
of the common stock. These expenses are estimated to be $15,000, including, but
not limited to, legal, accounting, printing and mailing fees. The selling
shareholders, however, will pay any commissions or other fees payable to
brokers or dealers in connection with any sale of the common stock.</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LEGAL
MATTERS</font></b><a name="LegalMatters_143241"></a></p>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dunn Carney Allen
Higgin &amp; Tongue LLP of Portland, Oregon will issue an opinion with respect
to the validity of the shares of common stock being offered hereby.</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXPERTS</font></b><a name="Experts_143244"></a></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Russell Bedford
Stefanou Mirchandani LLP, independent registered public accounting firm, has
audited our financial statements at December 31, 2005 and January 1, 2005 and
for the years then ended.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The financial
statements incorporated in this Prospectus by reference to the Annual Report on
Form&nbsp;10-KSB for the year ended January&nbsp;3, 2004 have been so
incorporated in reliance on the report (which contains an explanatory paragraph
relating to the Company&#146;s ability to continue as a going concern as described
in Note 2 to the financial statements) of PricewaterhouseCoopers&nbsp;LLP, an
independent registered public accounting firm, given on the authority of said
firm as experts in auditing and accounting.</font></p>

<h6 align="center" style="color:windowtext;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;"><font style="font-weight:bold;">INFORMATION INCORPORATED BY REFERENCE</font><a name="InformationIncorporatedByReferenc_143259"></a></font></b></h6>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Securities and Exchange Commission allows us to incorporate by reference
certain of our publicly-filed documents into this prospectus, which means that
such information is considered part of this prospectus.&#160; Information that we file with the SEC
subsequent to the date of this prospectus will automatically update and
supersede this information.&#160; We
incorporate by reference the documents listed below and any future filings made
with the SEC under all documents subsequently filed by us pursuant to Section
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 until the
selling stockholders have sold all of the shares offered hereby or such shares
have been deregistered.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
following documents filed with the SEC are incorporated herein by reference:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s annual report on Form 10-KSB for the period ending
December 31, 2005, as filed with the SEC on April 6, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s annual report on Form 10-KSB/A for the period
ending December 31, 2005, as filed with the SEC on June 1, 2006, which is
hereby incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q for the period ending
April 1, 2006, as filed with the SEC on May 16, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q/A for the period
ending April 1, 2006, as filed with the SEC on June 1, 2006, which is hereby
incorporated by reference.</p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">P-</font><font face="Times New Roman">17</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q for the period ending
July 1, 2006, as filed with the SEC on August 11, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q/A for the period
ending July 1, 2006, as filed with the SEC on August 18, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q for the period ending
September 30, 2006 as filed with the SEC on November 20, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to Registrant&#146;s Current Report filed on Form 8-K filed with the SEC on
July 7, 2006, which is hereby incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to Registrant&#146;s Current Report filed on Form 8-K filed with the SEC on
November 9, 2006, which is hereby incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the report of Independent Registered Public Accounting Firm for the
year ended January 3, 2004 and the related financial statements and notes
thereto on Form S-1/A, filed with the Commission on September 26, 2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the description of the Registrant&#146;s common stock as contained on
page 54 of its Registration Statement on Form S-1/A, filed with the Commission
on September 26, 2006, including all amendments and reports filed with the
Commission for the purpose of updating such description, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will provide without
charge to each person to whom a copy of this prospectus has been delivered, on
written or oral request a copy of any or all of the documents incorporated by
reference in this prospectus, other than exhibits to such documents.&#160; Written or oral requests for such copies
should be directed to Rodney M. Boucher.</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DISCLOSURE OF COMMISSION POSITION ON<br>
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</font></b><a name="DisclosureOfCommissionPositionOnI_143309"></a></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Articles of
Incorporation, as amended, provide to the fullest extent permitted by Oregon
law, our directors or officers shall not be personally liable to us or our
shareholders for damages for breach of such director&#146;s or officer&#146;s fiduciary
duty. The effect of this provision of our Articles of Incorporation, as
amended, is to eliminate our rights and our shareholders (through shareholders&#146;
derivative suits on behalf of our company) to recover damages against a
director or officer for breach of the fiduciary duty of care as a director or
officer (including breaches resulting from negligent or grossly negligent behavior),
except under certain situations defined by statute. We believe that the
indemnification provisions in our Articles of Incorporation, as amended, are
necessary to attract and retain qualified persons as directors and officers. In
addition, we have entered into indemnification agreements with our officers and
directors.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insofar as
indemnification for liabilities arising under the Securities Act of 1933 (the &#147;Act&#148;
or &#147;Securities Act&#148;) may be permitted to directors, officers or persons
controlling us pursuant to the foregoing provisions, or otherwise, we have been
advised that in the opinion of the Securities and Exchange Commission, such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable.</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ADDITIONAL INFORMATION AVAILABLE TO YOU</font></b><a name="AdditionalInformationAvailableToY_143316"></a></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
prospectus is part of a Registration Statement on Form S-8 that we filed with
the SEC.&#160; Certain information in the
Registration Statement has been omitted from this prospectus in accordance with
the rules of the SEC.&#160; We file annual,
quarterly and special reports, proxy statements and other information with the
SEC.&#160; You can inspect and copy the
Registration Statement as well as reports, proxy statements and other
information we have filed with the SEC at the public reference room maintained
by the SEC at 100 F Street N.E. Washington, D.C. 20549, You can obtain copies
from the public reference room of the SEC at 100 F Street N.E. Washington, D.C.
20549, upon payment of certain fees.&#160; You
can call the SEC at 1-800-732-0330 for further information about the public
reference room.&#160; We are also required to
file electronic versions of these documents with the SEC, which may be accessed
through the SEC&#146;s World Wide Web site at http://www.sec.gov.&#160; No dealer, salesperson or other person is
authorized to give any information or to make any representations other than
those contained in this prospectus, and, if given or made, such information or
representations must not be relied upon as having been authorized by us.&#160; This prospectus does not constitute an offer
to buy any security other than the securities offered by this prospectus, or an
offer to sell or a solicitation of an offer to buy any securities by any person
in any jurisdiction where such offer or solicitation is not authorized or is
unlawful. Neither delivery of this prospectus nor any sale hereunder shall,
under any circumstances, create any implication that there has been no change
in the affairs of our company since the date hereof.</font></p>


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<div style="font-family:Times New Roman;">
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<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MICROFIELD GROUP,
INC.<a name="MicrofieldGroupInc__130147"></a></font></b></p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,650,000 </font><font face="Times New Roman">shares
of Common Stock to be Offered and Sold by Selling Stockholders</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>

<div style="color:windowtext;line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROSPECTUS</font></p>

<div align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:100.0%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:100.0%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->No dealer, salesman or other person has been
  authorized to give any information or to make any representations other than
  those contained in this reoffer prospectus. Any information or
  representations not herein contained, if given or made, must not be relied
  upon as having been authorized by Microfield Group, Inc. This reoffer
  prospectus does not constitute an offer or solicitation in respect to these
  securities in any jurisdiction in which such offer or solicitation would be
  unlawful. The delivery of this reoffer prospectus shall not, under any
  circumstances, create any implication that there has been no change in the
  affairs of Microfield Group, Inc. or that the information contained herein is
  correct as of any time subsequent to the date of this reoffer prospectus.
  However, in the event of a material change, this reoffer prospectus will be
  amended or supplemented accordingly.</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:100.0%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<div style="color:windowtext;line-height:9.0pt;margin:12.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>
 <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part II</font></b></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INFORMATION
NOT REQUIRED IN PROSPECTUS</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 3.&#160;&#160;&#160; Incorporation of Documents by Reference.</font></b></p>

<p align="left" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:left;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Registrant hereby incorporates by reference into this Registration
Statement the documents listed below. In addition, all documents subsequently
filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities
Exchange Act of 1934 (the &#147;Exchange Act&#148;), prior to the filing of a
post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities then remaining unsold, shall be deemed
to be incorporated by reference into this Registration Statement and to be a
part hereof from the date of filing of such documents:</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following documents filed with the
SEC are incorporated herein by reference:</font></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s annual report on Form 10-KSB for the period ending
December 31, 2005, as filed with the SEC on April 6, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s annual report on Form 10-KSB/A for the period
ending December 31, 2005, as filed with the SEC on June 1, 2006, which is
hereby incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q for the period ending
April 1, 2006, as filed with the SEC on May 16, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q/A for the period
ending April 1, 2006, as filed with the SEC on June 1, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q for the period ending
July 1, 2006, as filed with the SEC on August 11, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the Registrant&#146;s quarterly report on Form 10-Q/A for the period
ending July 1, 2006, as filed with the SEC on August 18, 2006, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to Registrant&#146;s quarterly report filed on Form 10-Q filed with the SEC
on November 20, 2006, which is hereby incorporated by reference</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to Registrant&#146;s Current Report filed on Form 8-K filed with the SEC on
July 7, 2006, which is hereby incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to Registrant&#146;s Current Report filed on Form 8-K filed with the SEC on
November 9, 2006, which is hereby incorporated by reference.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the report of Independent Registered Public Accounting Firm for the
year ended January 3, 2004 and the related financial statements and notes
thereto on Form S-1/A, filed with the Commission on September 26, 2006.</p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reference
is made to the description of the Registrant&#146;s common stock as contained on
page 54 of its Registration Statement on Form S-1/A, filed with the Commission
on September 26, 2006, including all amendments and reports filed with the
Commission for the purpose of updating such description, which is hereby
incorporated by reference.</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold;">Item 4.&#160;&#160;&#160; </font>Description of Securities.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not
Applicable.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.&#160;&#160;&#160; Interests of Named Experts and Counsel.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 6.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No expert or counsel named in this Registration
Statement as having prepared or certified any part of this Registration
Statement or having given an opinion upon the validity of the securities being
registered or upon other legal matters in connection with the registration or
offering of the common stock was employed on a contingency basis, or had, or is
to receive, in connection with the offering, a substantial interest, direct or
indirect, in the Registrant, nor was any such person connected with the
Registrant as a promoter, managing or principal underwriter, voting trustee,
director, officer or employee.</font></p>

<p style="color:windowtext;margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="color:windowtext;margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 6.&#160;&#160;&#160; Indemnification of Directors and Officers.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Articles of Incorporation, as amended, provide to
the fullest extent permitted by Oregon law, our directors or officers shall not
be personally liable to us or our shareholders for damages for breach of such
director&#146;s or officer&#146;s fiduciary duty. The effect of this provision of our
Articles of Incorporation, as amended, is to eliminate our rights and our
shareholders (through shareholders&#146; derivative suits on behalf of our company)
to recover damages against a director or officer for breach of the fiduciary
duty of care as a director or officer (including breaches resulting from
negligent or grossly negligent behavior), except under certain situations
defined by statute. We believe that the indemnification provisions in our
Articles of Incorporation, as amended, are necessary to attract and retain
qualified persons as directors and officers. In addition, we have entered into
indemnification agreements with our officers and directors.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insofar as indemnification for liabilities arising
under the Securities Act of 1933 (the &#147;Act&#148; or &#147;Securities Act&#148;) may be
permitted to directors, officers or persons controlling us pursuant to the foregoing
provisions, or otherwise, we have been advised that in the opinion of the
Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 7.&#160;&#160;&#160; Exemption from Registration Claimed.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not applicable.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 8.&#160;&#160;&#160; Exhibits.</font></b></p>

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

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  </td>
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  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="61" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:46.05pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NUMBER</font></b></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.95pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.4pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT</font></b></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="479" valign="top" style="padding:0pt .7pt 0pt 0pt;width:358.95pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended 2004 Stock
  Incentive Plan</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restated 1995 Stock
  Incentive Plan (incorporated by reference to Exhibit&nbsp;10.12 of the
  Company&#146;s Form&nbsp;10-QSB for the quarterly period ended July&nbsp;3, 1999).</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Dunn Carney
  Allen Higgin &amp; Tongue LLP.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Dunn Carney
  Allen Higgin &amp; Tongue LLP (contained in Exhibit 5.1).</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Russell
  Bedford Stefanou Mirchandani LLP.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:60.0pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.3</font></p>
  </td>
  <td width="544" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:408.35pt;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of PricewaterhouseCoopers LLP</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="61" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="12" style="border:none;"></td>
  <td width="59" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="479" style="border:none;"></td>
 </tr>
</table>

</div>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.&#160;&#160;&#160; Undertakings.</font></b></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)
The undersigned registrant hereby undertakes:</font></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt 52.0pt;text-indent:-16.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&nbsp;To file, during
any period in which offers or sales are being made, a post-effective amendment
to this registration statement:</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;To include any
prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933;</font></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;To reflect in
the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule&nbsp;424(b) if, in the aggregate, the changes in
volume and price represent no more than 20&nbsp;percent change in the maximum
aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148;
table in the effective registration statement;</font></p>

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


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"></p>


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

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;To include any
material information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such
information in the registration statement;</font></p>

<p style="background:white;color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Provided, however</font></i>, that paragraphs (1)(i),
and (1)(ii) do not apply if the Registration Statement is on Form S-8 and if
the information required to be included in a post-effective amendment by those
paragraphs is contained in reports filed with or furnished to the Commission by
the Registrant pursuant to section&nbsp;13 or section&nbsp;15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the
registration statement.</p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&nbsp;That,
for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment 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.</font></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&nbsp;To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.</font></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)&nbsp;That,
for purposes of determining any liability under the Securities Act of 1933,
each filing of the registrant&#146;s annual report pursuant to Section&nbsp;13(a) or
15(d) of the Securities Exchange Act of 1934 (and, where applicable, each
filing of an employee benefit plan&#146;s annual report pursuant to
Section&nbsp;15(d) of the Securities Exchange Act of 1934)&nbsp;that is
incorporated by reference in the registration statement 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.</font></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insofar
as indemnification for liabilities arising under the Securities Act of 1933 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 Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable.</font></p>

<p style="background:white;color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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 Act and will be governed by the final adjudication of such
issue.</font></p>

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


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"></p>


<p style="color:windowtext;margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In accordance with
the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form&nbsp;S-8 and has duly caused this Form S-8 to
be signed on its behalf by the undersigned, thereunto duly authorized, in the
City of Portland, State of Oregon, on December 26, 2006.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.7%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="57%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:57.3%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MICROFIELD GROUP, INC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.32%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:33.76%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Rodney M. Boucher</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.56%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.32%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rodney M. Boucher,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.32%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><em><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer (Principal Executive Officer)</font></i></em></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.32%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:33.76%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Randall R. Reed</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.56%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.7%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.32%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Randall R. Reed,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.32%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><em><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer (Principal Financial and Accounting Officer)</font></i></em></p>
  </td>
 </tr>
</table>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In accordance with
the requirements of the Securities Act of 1933, as amended, this Form S-8 has
been signed below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="16%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.14%;">
  <p style="color:windowtext;font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="6%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:6.94%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Signature</font></b></p>
  </td>
  <td width="16%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.14%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.82%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:3.5%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Title</font></b></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.82%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:3.5%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Date</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="color:windowtext;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Rodney M. Boucher</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer
  and Director (Principal</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rodney M. Boucher</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Officer)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;A. Mark Walter</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A. Mark Walter</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Randall R. Reed</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer
  <em><i><font face="Times New Roman">(</font></i></em><em><i><font face="Times New Roman" style="font-style:normal;">Principal Financial</font></i></em></font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Randall R. Reed</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><em><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:normal;">&nbsp;</font></i></em></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><em><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">and
  Accounting Officer)</font></i></em></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Gary D. Conley</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gary D. Conley</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Gene Ameduri</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gene Ameduri</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;William C. McCormick</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">William C. McCormick</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;Michael W. Stansell</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December 26, 2006</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="39%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.22%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael W. Stansell</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.88%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="color:windowtext;margin:11.25pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">4</font></p>
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[{"type": "S-8", "sequence": "1", "filename": "a06-26204_1s8.htm", "description": "SECURITIES TO BE OFFERED TO EMPLOYEES PURSUANT TO EMPLOYEE BENEFIT PLANS", "secsgml_size_bytes": 295752}]
{"company-data": {"conformed-name": "MICROFIELD GROUP INC", "cik": "0000944947", "assigned-sic": "1731", "irs-number": "930935149", "state-of-incorporation": "OR", "fiscal-year-end": "0102"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-139671", "film-number": "061298727"}, "business-address": {"street1": "1631 NW THURMAN, SUITE 310", "city": "PORTLAND", "state": "OR", "zip": "97209", "phone": "5034193580"}, "mail-address": {"street1": "1631 NW THURMAN, SUITE 310", "city": "PORTLAND", "state": "OR", "zip": "97209"}, "former-company": {"former-conformed-name": "MICROFIELD GRAPHICS INC /OR", "date-changed": "19950504"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
MICROFIELD GROUP, INC.
(Exact name of issuer as specified in its charter)
Oregon
93-0935149
(State
  or other jurisdiction of
incorporation or organization)
(I.R.S.
  Employer
Identification No.)
111
SW Columbia, Suite 480
Portland, Oregon 97201
Telephone: (503) 419-3580
(Address of Principal
Executive Offices and Zip Code)
Amended 2004 Stock Incentive Plan
Restated 1995 Stock Incentive Plan
(Full Title of Plan)
Rodney M. Boucher, Chief Executive
Officer
MICROFIELD GROUP, INC.
111 SW Columbia, Suite 480
Portland, Oregon 97201
(Name and address of agent for service)
Telephone: (503) 419-3580
(Telephone number, including area code, of agent for service)
Copies of all communications, including all
communications sent to agent for service to:
Jeffrey Fessler, Esq.
Sichenzia Ross Friedman Ference LLP
1065 Avenue of Americas
New York, NY 10018
Phone (212) 930-9700
Fax (212) 930-9725
CALCULATION
OF REGISTRATION FEE
Title of Securities to be Registered (1)
Amount to be Registered (2)
Proposed Maximum Offering Price Per Share
Proposed Maximum Aggregate Offering Price
Amount of
Registration Fee
Common Stock
8,087,577 shares
$0.53
(3)(i)
$4,286,416
$458.65
Common Stock
12,517,423
  shares
$0.58
(3)(ii)
$7,260,105
$776.83
Total
1,235.48
1.
This
registration statement covers shares of our common stock, no par value per
share, issuable pursuant to stock options and other equity incentive awards
under our Amended 2004 Stock Incentive Plan (the "2004 Stock Incentive Plan")
and our Restated 1995 Stock Incentive Plan (the "Restated 1995 Plan" and
together with the 2004 Stock Incentive Plan, the "Plans").
2.
This
registration statement shall also cover an indeterminable number of additional
common shares which may become issuable under the Plans by reason of any stock
dividend, stock split, re-capitalization or any other similar transaction
effected without the receipt of consideration which results in an increase in
the number of the registrant's outstanding common shares.
3.
The
Proposed Maximum Offering Price Per Share is calculated in accordance with Rule
457(h) of the
Securities Act of 1933
, as amended, based upon: (i) the average exercise price of $0.53 per common
share of outstanding options to purchase 8,087,577 common shares that have been issued to date pursuant to
our Plans; and (ii) the average of the bid and asked price of our common stock
on December 19, 2006, being $0.58 per common share, with respect to the
12,517,423 common shares that have been reserved for issuance pursuant to
awards that may be granted under our 2004 Stock Incentive Plan and that are
registered pursuant to this registration statement..
Part I
INFORMATION REQUIRED IN SECTION 10(A)
PROSPECTUS
This Registration Statement relates to two separate
prospectuses.
Section 10(a) Prospectus
: Items 1
and 2, from this page, and the documents incorporated by reference pursuant to
Part II, Item 3 of this prospectus, constitute a prospectus that meets the
requirements of Section 10(a) of the
Securities
Act of 1933
, as amended (the "Securities Act").
Reoffer Prospectus
: The material
that follows Item 2, beginning on Page P-1 through P-29, up to but not including
Part II of this Registration Statement, beginning on Page II-1, of which the
reoffer prospectus
is a part, constitutes a "
reoffer prospectus
," prepared in accordance with the
requirements of Part I of Form S-3 under the Securities Act. Pursuant to Instruction
C of Form S-8, the
reoffer prospectus
may be used for reoffers or resales of common shares which are deemed to be "control
securities" or "restricted securities" under the Securities Act that have been
acquired by the selling shareholders named in the
reoffer
prospectus
.
Item
1.            Plan
Information.
The documents containing the information specified in
Item 1 will be sent or given to participants in the 2004 Stock Incentive Plan as specified by Rule 428(b)(1) of the
Securities Act of 1933, as amended (the "Securities Act"). Such documents are
not required to be and are not filed with the Securities and Exchange
Commission (the "SEC") either as part of this Registration Statement or as
prospectuses or prospectus supplements pursuant to Rule 424. These documents
and the documents incorporated by reference in this Registration Statement
pursuant to Item 3 of Part II of this Form S-8, taken together, constitute a
prospectus that meets the requirements of Section 10(a) of the Securities Act.
Item
2.            Registrant
Information and Employee Plan Annual Information.*
Upon written or oral
request, any of the documents incorporated by reference in Item 3 of Part II of
this Registration Statement (which documents are incorporated by reference in
this Section 10(a) Prospectus), other documents required to be delivered to
eligible employees, non-employee directors and consultants, pursuant to Rule
428(b) are available without charge by contacting:
Rodney M. Boucher, Chief Executive Officer
MICROFIELD GROUP, INC.
111 SW Columbia, Suite 480
Portland, Oregon 97201
(503) 419-3580
*
Information required by Part I to be contained in
Section 10(a) prospectus is omitted from the Registration Statement in
accordance with Rule 428 under the Securities Act of 1933, and Note to Part I
of Form S-8.
__________
I-
1
REOFFER PROSPECTUS
MICROFIELD GROUP, INC.
3,650,000 Shares of Common Stock
This
reoffer prospectus
relates to 3,650,000
shares of our common stock, no par value per share, that may be offered and
resold from time to time by certain eligible participants and existing selling
shareholders in our Amended 2004 Stock Incentive Plan (the "2004 Stock
Incentive Plan") identified in this prospectus for their own account. Eligible
participants in our 2004 Stock Incentive Plan consist of employees, directors,
officers and consultants of our company or its related entities. Selling
shareholders consist and will consist of those eligible participants who are
affiliates of our company (as defined in Rule 405 of the
Securities Act of 1933
, as amended (the "Securities
Act")). It is anticipated that the selling shareholders will offer common
shares for sale at prevailing prices on the OTC Bulletin Board on the date of
sale. We will receive no part of the proceeds from sales made under this
reoffer prospectus
. The selling shareholders
will bear all sales commissions and similar expenses. Any other expenses
incurred by us in connection with the registration and offering and not borne
by the selling shareholders will be borne by us.
The common shares of common
stock will be issued pursuant to awards granted under our 2004 Stock Incentive
Plan and will be "control securities" under the Securities Act before their
sale under this
reoffer prospectus
.
This
reoffer prospectus
has been
prepared for the purposes of registering the common shares under the Securities
Act to allow for future sales by selling shareholders on a continuous or
delayed basis to the public without restriction.
The selling shareholders and
any brokers executing selling orders on their behalf may be deemed to be "underwriters"
within the meaning of the Securities Act, in which event commissions received
by such brokers may be deemed to be underwriting commissions under the
Securities Act.
Our common stock trades on
the Over-The-Counter Bulletin Board under the symbol "MICG.OB" On December 19,
2006, the closing sale price of the common stock was $0.60 per share.
Investing in our common stock
involves risks. See "Risk Factors" on page six of this reoffer prospectus.
These are speculative securities.
Since our company does not currently
meet the registrant requirements for use of Form S-3, the amount of common
shares which may be resold by means of this reoffer prospectus by each of the
selling stockholders, and any other person with whom he or she is acting in
concert for the purpose of selling securities of our company, must not exceed,
in any three month period, the amount specified in Rule 144(e) promulgated
under the Securities Act.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY
STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENCE.
The date of this
prospectus is December 26, 2006
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TABLE OF CONTENTS
Page
Prospectus Summary
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Risk Factors
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Cautionary Note Regarding Forward-Looking Statements
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Determination Of Offering Price
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Use of
  Proceeds
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Selling
  Shareholders
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Plan
  of Distribution
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Legal
  Matters
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Experts
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Incorporation of Certain Documents by Reference
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Disclosure of Commission Position on Indemnification
  for Securities Act Liabilities
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Additional Information Available to You
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NO PERSON HAS BEEN
AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN
THOSE CONTAINED IN THIS PROSPECTUS, IN CONNECTION WITH THE OFFERING MADE
HEREBY, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY OTHER PERSON.
NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL UNDER
ANY CIRCUMSTANCES CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE
AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES
OFFERED HEREBY BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR
SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANY PERSON TO WHOM IT IS UNLAWFUL
TO MAKE SUCH OFFER OR SOLICITATION.
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PROSPECTUS
SUMMARY
The following
summary highlights selected information contained in this prospectus. This
summary does not contain all the information you should consider before investing
in the securities. Before making an investment decision, you should read the
entire prospectus carefully, including the "risk factors" section, the
financial statements and the secured convertible notes to the financial
statements.
Overview
We specialize in
the installation of electrical, control, and telecomunications products and
services, and in transactions involving integration of consumers of electricity
into the wholesale electricity markets. We expanded through acquisitions in
2005 from an energy and related technologies and services business to a
business that also provides energy consumers a new source of energy revenues
and savings and the means to achieve such benefits. Included in these
acquisitions are the capabilities to service high voltage facilities including
wind farms and solar energy collection facilities. Two new subsidiaries were
integrated with the Christenson Velagio, Inc. ("CVI") subsidiary this year.
These subsidiaries are Christenson Electric, Inc. ("CEI"), acquired in July
2005 and EnergyConnect, Inc. (ECI"), acquired in October 2005. In January 2006,
the operations of CVI and CEI were combined and are operating as CEI, Inc.
Currently, CEI and ECI are the remaining wholly-owned operating subsidiaries of
our company.  Our objective is to
leverage our assets and resources and build a viable, profitable, wholesale
power transaction, electrical services, and technology infrastructure business.
We have the
ability to deliver the following products and services:
·
Electrical
and systems engineering and design
·
Controls,
lighting, and cabling
·
Building
electric service
·
Solar,
wind, distributed generation, and substations
·
Information
technology networks
·
Telecommunications,
computer telephony, and integrated systems
·
Life
safety and security systems
·
Redistribution
in malls and shopping centers
·
Construction,
maintenance, inspection, and upgrades
·
Integrated
building controls, wiring, and cabling
·
HVAC,
·
Lighting
·
Life
safety systems
·
Telecommunications
systems integration and infrastructure
·
Computer
telephony integration
·
Digital
Video CCTV systems
·
Enterprise
security systems
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·
Wireless
networking solutions
·
Information
technology networks
·
Voice
/ data systems
·
Electrical
construction service
·
Buildings
and industrial systems
·
Substations
·
Wind
farms, solar collectors, and distributed generation
·
Redistribution
in malls and shopping centers
·
Software
development
·
Commercial
building energy data management, data acquisition, and modeling
·
Regional
grid data monitoring, data management, and price forecasting
·
Electric
consumer transactional interface, wholesale products, and transaction
management
·
Settlement
systems and related protocols
·
Electric
Power Transactions
·
Service
electric energy, capacity, and reserve needs of regional electric grids
·
Service
wholesale electric markets to improve electric supply and delivery efficiencies
·
Enable
buildings and industrial consumers to contribute to these services
CEI has been
focused on electrical and technology products and services to customers in the
Portland and Eugene, Oregon markets and the southwest Washington State markets.
With the recent acquisitions our footprint for coordinating, managing,
directing, and/or supervising services to energy consumers is being expanded to
include additional regions in the US. CEI also provides electrical design and
construction services to utilities, grid operators and electric power
generation companies nationally. ECI enables buildings and industrial electric
consumers to contribute to the wholesale electric market, provides the
transaction technologies and processes to integrate consumers into the
wholesale electric market, and uses these capabilities to service regional
electric grid operators with energy, capacity, reserves, and related needs.
Integrating CEI and ECI combines the breadth of services needed to deliver full
service solutions to our customers.
CEI has
continuously provided electrical design, engineering, and construction services
for more that 50 years. It now services all of the electrical, control,
lighting, safety, security, and related systems needed for economic and secure
operations of buildings and industrial sites. A substantial portion of CEI
business is repeat business under long-standing relationships with it
customers. CEI operates a fleet of service trucks that supply the electric
related needs of hundreds of customers.
Through its work
on alternative energy projects such as wind farms and solar farms, CEI has been
at the forefront of the current boom in building the alternative energy
distribution infrastructure. CEI will continue its historic businesses
including wind farm electrical construction, maintenance and construction of
substations, and maintenance and construction of distribution and transmission
facilities. CEI also continues to provide services to Bonneville Power
Administration and other major utilities under long-standing contractual
relationships.
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ECI provides
wholesale electric market transaction services to regional electric grids.
Selected needs of electric grid operators, including energy, capacity, and
reserves have been formed into products that can be delivered through ECI
systems to the grid. ECI technologies, processes, and services enable buildings
and electric consumers to contribute to such wholesale services at levels and
with complexities of service never before achieved. It is anticipated ECI
transaction services will increase the need for many of the services supplied
by CEI before the acquisition.
For the fiscal year
ended December 31, 2005, we generated $57,935,035 in revenues and had a net
loss of $77,953,193. This loss included charges of $77,419,759 due to
impairment of our Company's goodwill and intangibles, and $503,543 for the
revaluation of a warrant liability at December 31, 2005. For the year ended
January 1, 2005, we generated $36,466,618 in revenues and had a net loss of
$6,181,683. As a result of our history of losses and our experiencing
difficulty in generating sufficient cash flow to meet our obligations and
sustain our operations, our auditors, in their report dated February 24, 2006,
have expressed substantial doubt about our ability to continue as going
concern. CEI was acquired on July 20, 2005. Therefore the revenue and net loss
numbers above only include revenue and expenses from that entity from July 20,
2005 through December 31, 2005. ECI was acquired on October 13, 2005; therefore
the revenue and net income amounts mentioned above only include revenue and
expenses of ECI from October 14, 2005 through December 31, 2005.
Our principal
offices are located at 111 SW Columbia Ave, Suite 480, Portland, Oregon 97201,
and our telephone number is (503) 419-3580. We are an Oregon corporation. We
maintain websites at www.microfield.com and www.energyconnectinc.com. The
information contained on these websites is not deemed to be a part of this
prospectus.
This
Offering
Shares of common stock
  outstanding prior to this offering
75,552,437
(1)
Shares of common
  stock issuable upon exercise of outstanding options which may beoffered
  pursuant to this prospectus
3,650,000
Use of proceeds
We will not receive any proceeds from the sale of
  the shares of common stock offered in this prospectus. We will receive
  proceeds to the extent that currently outstanding options are exercised for
  cash. We will use the exercise proceeds, if any, for working capital and
  general corporate purposes.
Risk Factors
The purchase of our common stock involves a high
  degree of risk. You should carefully review and consider "Risk Factors"
  beginning on page 6.
Over-The Counter
  Bulletin Board Stock Exchange Symbol
MICG.OB
(1) As of November
30, 2006. Does not include shares of common stock issuable upon exercise of
outstanding options or warrants.
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RISK FACTORS
This investment
has a high degree of risk. Before you invest you should carefully consider the
risks and uncertainties described below and the other information in this
prospectus. If any of the following risks actually occur, our business,
operating results and financial condition could be harmed and the value of our
stock could go down. This means you could lose all or a part of your
investment.
Risks
Relating to Our Business
We
Have a History Of Losses Which May Continue and Which May Negatively Impact
Our Ability to Achieve Our Business
Objectives.
We
incurred an operating loss of $4,273,000 for the nine months ended
September 30, 2006 and net losses of $77,953,193 and $6,181,683 for the
years ended December 31, 2005 and January 1, 2005, respectively. The
loss for the nine months ended September 30, 2006 includes expenses of
$1,649,000 due to non-cash charges for stock based compensation and
amortization of intangible assets. Of the loss amount in 2005, $77,420,000 was
due to a non-cash write-off of impaired goodwill from the ECI transaction, and
other intangible asset, non-cash impairment charges. We cannot assure you that
we can achieve or sustain profitability on a quarterly or annual basis in the future.
Our operations are subject to the risks and competition inherent in the
establishment of a business enterprise. There can be no assurance that future
operations will be profitable. Revenues and profits, if any, will depend upon
various factors. Additionally, as we continue to incur losses, our accumulated
deficit will continue to increase, which might make it harder for us to obtain
financing in the future. We may not achieve our business objectives and the
failure to achieve such goals would have an adverse impact on us, which could
result in reducing or terminating our operations.
If
We Experience Continuing Losses and Are Unable to Obtain Additional Funding,
Our Business Operations Will be
Harmed and If We Do Obtain Additional Financing Our Then Existing
Shareholders
May Suffer
Substantial Dilution.
We may require additional funds to sustain and expand
our research and development activities. Additional capital may be required to
effectively support the operations and to otherwise implement our overall
business strategy. Even if we do receive additional financing, it may not be
sufficient to sustain or expand our research and development operations or
continue our business operations.
There can be no
assurance that financing will be available in amounts or on terms acceptable to
us, if at all. The inability to obtain additional capital will restrict our
ability to grow and may reduce our ability to continue to conduct business
operations. If we are unable to obtain additional financing, we will likely be
required to curtail our research and development plans. Any additional equity
financing may involve substantial dilution to our then existing shareholders.
Our
Independent Registered Public Accounting Firm Has Expressed Substantial
Doubt About Our Ability to Continue As a
Going Concern, Which May Hinder Our
Ability to Obtain Future Financing.
In their report dated February 24, 2006, our
independent registered public accounting firm stated that our financial
statements for the year ended December 31, 2005 were prepared assuming that we
would continue as a going concern. Our ability to continue as a going concern
is an issue raised due to our incurring net losses of $77,953,193 and
$6,181,683, for the years ended December 31, 2005 and January 1, 2005, respectively.
With the funds obtained in the June 30, 2006 private placement, our ability to
continue as a going concern was greatly enhanced. Our continued viability is
subject to our ability to generate profits 
to sustain the operating cash flow needs for future periods.  Our continued net operating losses increase
the difficulty in meeting such goals and there can be no assurances that such
methods will prove successful.
Many
Of Our Competitors Are Larger and Have Greater Financial and Other
Resources than We Do and Those Advantages
Could Make It Difficult For Us to
Compete
With Them.
The electrical
products and services industry is extremely competitive and includes several
companies that have achieved substantially greater market shares than we have,
have longer operating histories, have larger customer bases, and have
substantially greater financial, development and marketing resources than we
do. If overall demand for our products should decrease it could have a
materially adverse affect on our operating results.
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The
Failure To Manage Our Growth In Operations And Acquisitions Of New Product
Lines And New Businesses Could Have A
Material Adverse Effect On Us.
The expected
growth of our operations (as to which no representation can be made) will place
a significant strain on our current management resources. To manage this
expected growth, we will need to improve our:
·
operations
and financial systems;
·
procedures
and controls; and
·
training
and management of our employees.
Our future growth
may be attributable to acquisitions of new product lines and new businesses. We
expect that future acquisitions, if successfully consummated, will create
increased working capital requirements, which will likely precede by several
months any material contribution of an acquisition to our net income.
Our failure to
manage growth or future acquisitions successfully could seriously harm our
operating results. Also, acquisition costs could cause our quarterly operating
results to vary significantly. Furthermore, our stockholders would be diluted
if we financed the acquisitions by incurring convertible debt or issuing
securities.
Although we
currently only have operations within the United States, if we were to acquire
an international operation; we will face additional risks, including:
·
Difficulties in staffing, managing and
integrating international operations due to language, cultural or other
differences;
·
Different or conflicting regulatory or
legal requirements;
·
Foreign currency fluctuations; and
·
Diversion of significant time and
attention of our management.
Potential
future acquisitions could be difficult to integrate, disrupt our
business, dilute stockholder value and
adversely affect our operating results.
Since September
2004, we have acquired three companies and we intend to further expand our
operations through targeted, strategic acquisitions over time. This may require
significant management time and financial resources because we may need to
integrate widely dispersed operations with distinct corporate cultures. Our
failure to manage future acquisitions successfully could seriously harm our
operating results. Also, acquisition costs could cause our quarterly operating
results to vary significantly. Furthermore, our stockholders would be diluted
if we financed the acquisitions by incurring convertible debt or issuing
securities.
Goodwill
Recorded On Our Balance Sheet May Become Impaired, Which Could Have A
Material Adverse Effect On Our Operating
Results.
As a result of
each of the acquisitions we have been a party to, we have recorded a
significant amount of goodwill. As required by Statement of Financial
Accounting Standards (SFAS) No. 142, "Goodwill and Intangible Assets," we
annually evaluate the potential impairment of goodwill that was recorded at
each acquisition date. Circumstances could change which would give rise to an
impairment of the value of that recorded goodwill. This potential impairment
would be charged as an expense to the statement of operations which could have
a material adverse effect on our operating results. For the twelve months ended
December 31, 2005, we wrote off, approximately $77 million of goodwill due to
impairment testing of this asset.  No
goodwill or intangible asset value was written off in the nine months ended
September 30, 2006.
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If
We Are Unable to Retain the Services of Messrs. Boucher and Walter, or If We
Are Unable to Successfully Recruit Qualified
Managerial and Sales Personnel
Having
Experience in Business, We May Not Be Able to Continue Our Operations.
Our success depends
to a significant extent upon the continued service of Mr. Rodney M. Boucher,
our Chief Executive Officer and Mr. A. Mark Walter, our President. We do not
have employment agreements with Messrs. Boucher or Walter. Loss of the services
of Messrs. Boucher or Walter could have a material adverse effect on our
growth, revenues, and prospective business. We do not maintain key-man
insurance on the life of Messrs. Boucher or Walter. We are not aware of any
named executive officer or director who has plans to leave us or retire. In
addition, in order to successfully implement and manage our business plan, we
will be dependent upon, among other things, successfully recruiting qualified
managerial and sales personnel having experience in business. Competition for
qualified individuals is intense. There can be no assurance that we will be
able to find, attract and retain existing employees or that we will be able to
find, attract and retain qualified personnel on acceptable terms.
Our
success is dependent on the growth in energy management and curtailment
programs, and the continued need for
electrical construction and technology
services, and to the extent that such growth slows and the need for
services
curtail , our business
may be harmed.
The construction
services industry has experienced a drop in demand since 2000 both in the
United States and internationally. Recently, however, that trend has reversed
in response to a turnaround in the capital markets, renewed growth in the
construction industry, passage of favorable energy tax legislation by Congress,
and a vibrant real estate market. It is difficult to predict whether these
changes will result in continued economic improvement in the industries which
our company serves. If the rate of growth should slow down, or end users reduce
their capital investments in construction related products, our operating
results may decline which could cause a decline in our profits.
Our
quarterly results fluctuate and may cause our stock price to decline.
Our quarterly
operating results have fluctuated in the past and will likely fluctuate in the
future. As a result, we believe that period to period comparisons of our
results of operations are not a good indication of our future performance. A
number of factors, many of which are outside of our control, are likely to
cause these fluctuations.
The factors
outside of our control include:
·
Construction
and energy market conditions and economic conditions generally;
·
Timing
and volume of customers' specialty construction projects;
·
The
timing and size of construction projects by end users;
·
Fluctuations
in demand for our services;
·
Changes
in our mix of customers' projects and business activities;
·
The
length of sales cycles;
·
While opportunities for transactional revenue
is higher in cold weather months adverse weather conditions,
particularly during the winter season, could effect our ability to render
services in certain regions of the United States;
·
The
ability of certain customers to sustain capital resources to pay their trade
accounts receivable balances;
·
Reductions
in the prices of services offered by our competitors; and
·
Costs
of integrating technologies or businesses that we add.
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The factors
substantially within our control include:
·
Changes
in the actual and estimated costs and time to complete fixed-price,
time-certain projects that may result in revenue adjustments for contracts
where revenue is recognized under the percentage of completion method;
·
The
timing of expansion into new markets;
·
Costs
incurred to support internal growth and acquisitions;
·
Fluctuations
in operating results caused by acquisitions; and
·
The
timing and payments associated with possible acquisitions.
Because our
operating results may vary significantly from quarter to quarter, our operating
results may not meet the expectations of securities analysts and investors, and
our common stock could decline significantly which may expose us to risks of
securities litigation, impair our ability to attract and retain qualified
individuals using equity incentives and make it more difficult to complete
acquisitions using equity as consideration.
Failure
to keep pace with the latest technological changes could result in
decreased revenues.
The market for our
services is partially characterized by rapid change and technological
improvements. Failure to respond in a timely and cost-effective way to these
technological developments could result in serious harm to our business and
operating results. We have derived, and we expect to continue to derive, a
significant portion of our revenues from technology based products. As a
result, our success will depend, in part, on our ability to develop and market
product and service offerings that respond in a timely manner to the
technological advances of our customers, evolving industry standards and
changing client preferences.
Failure
to properly manage projects may result in costs or claims.
Our engagements
often involve large scale, highly complex projects utilizing leading
technology. The quality of our performance on such projects depends in large
part upon our ability to manage the relationship with our customers, and to
effectively manage the project and deploy appropriate resources, including
third-party contractors, and our own personnel, in a timely manner. Any defects
or errors or failure to meet clients' expectations could result in claims for
substantial damages against us. Our contracts generally limit our liability for
damages that arise from negligent acts, error, mistakes or omissions in
rendering services to our clients. However, we cannot be sure that these
contractual provisions will protect us from liability for damages in the event
we are sued. In addition, in certain instances, we guarantee customers that we
will complete a project by a scheduled date or that the project will achieve
certain performance standards. As a result, we often have to make judgments
concerning time and labor costs. If the project experiences a problem, we may
not be able to recover the additional costs we will incur, which could exceed
revenues realized from a project. Finally, if we miscalculate the resources or
time we need to complete a project with capped or fixed fees, our operating
results could seriously decline.
During
the ordinary course of our business, we may become subject to lawsuits
or indemnity claims, which could materially
and adversely affect our business
and
results of operations.
We have in the
past been, and may in the future be, named as a defendant in lawsuits, claims
and other legal proceedings during the ordinary course of our business. These
actions may seek, among other things, compensation for alleged personal injury,
workers' compensation, employment discrimination, breach of contract, property
damage, punitive damages, civil penalties or other losses, consequential
damages or injunctive or declaratory relief. In addition, pursuant to our
service arrangements, we generally indemnify our customers for claims related
to the services we provide thereunder. Furthermore, our services are integral to
the operation and performance of the electric distribution and transmission
infrastructure. As a result, we may become subject to lawsuits or claims for
any failure of the systems that we work on, even if our services are not the
cause for such failures. In addition, we may incur civil and criminal
liabilities to the extent that our services contributed to any property damage
or blackout. With respect to such lawsuits, claims, proceedings and
indemnities, we have and will accrue reserves in accordance with generally
accepted accounting principles. In the event that such actions or indemnities
are ultimately resolved unfavorably at amounts exceeding our accrued reserves,
or at material amounts, the outcome could materially and adversely affect our
reputation, business and results of operations. In addition, payments of
significant amounts, even if reserved, could adversely affect our liquidity
position.
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Our
failure to comply with, or the imposition of liability under, environmental
laws and regulations could result in
significant costs.
Our facilities and
operations, including fueling and truck maintenance, repair, washing and
final-stage construction, are subject to various environmental laws and
regulations relating principally to the use, storage and disposal of solid and
hazardous wastes and the discharge of pollutants into the air, water and land.
Violations of these requirements, or of any permits required for our
operations, could result in significant fines or penalties. We are also subject
to laws and regulations that can impose liability, sometimes without regard to
fault, for investigating or cleaning up contamination, as well as for damages
to property or natural resources and for personal injury arising out of such
contamination. Such liabilities may also be joint and several, meaning that we
could be held responsible for more than our share of the liability involved, or
even the entire amount. The presence of environmental contamination could also
adversely affect our ongoing operations. In addition, we perform work in
wetlands and other environmentally sensitive areas, as well as in different
types of underground environments. In the event we fail to obtain or comply
with any permits required for such activities, or such activities cause any environmental
damage, we could incur significant liability. We have incurred costs in
connection with environmental compliance, remediation and/or monitoring, and we
anticipate that we will continue to do so. Discovery of additional
contamination for which we are responsible, the enactment of new laws and
regulations, or changes in how existing requirements are enforced, could
require us to incur additional costs for compliance or subject us to unexpected
liabilities.
The
electric infrastructure servicing business is subject to seasonal
variations, which may cause our operating
results to vary significantly from
period
to period and could cause the market price of our stock to fall.
Due to the fact
that a significant portion of our business is performed outdoors, our results
of operations are subject to seasonal variations. These seasonal variations
affect our core activities of maintaining, upgrading and extending electrical
distribution powerlines and not only our storm restoration services. Generally,
during the winter months, demand for new work and maintenance services may be
lower due to reduced construction activity during inclement weather, while
demand for electrical service and repairs may be higher due to damage caused by
such weather conditions. Additionally, more energy management transactional
revenues are produced in peak energy usage months during the winter and summer.
Seasonal variations will cause fluctuations in our revenues during the year. As
a result, operating results may vary significantly from period to period. If
our operating results fall below the public's or analysts' expectations in some
future period or periods, the market price of our common stock will likely fall
in such period or periods.
Employee
strikes and other labor-related disruptions may adversely affect our
operations.
Our electric
services business is labor intensive, requiring large numbers of electricians,
installers and other personnel. Subject to seasonality, approximately 85-95% of
our workforce is unionized. Strikes or labor disputes with our unionized
employees may adversely affect our ability to conduct our business. If we are
unable to reach agreement with any of our unionized work groups on future
negotiations regarding the terms of their collective bargaining agreements, or
if additional segments of our workforce become unionized, we may be subject to
work interruptions or stoppages. Any of these events would be disruptive to our
operations and could harm our business.
Our
Trademark and Other Intellectual Property Rights May not be Adequately
Protected Outside the United States,
Resulting in Loss of Revenue.
We believe that
our trademarks, whether licensed or owned by us, and other proprietary rights
are important to our success and our competitive position. In the course of any
potential international expansion, we may, however, experience conflict with
various third parties who acquire or claim ownership rights in certain
trademarks. We cannot assure you that the actions we have taken to establish
and protect these trademarks and other proprietary rights will be adequate to
prevent imitation of our products by others or to prevent others from seeking
to block sales of our products as a violation of the trademarks and proprietary
rights of others. Also, we cannot assure you that others will not assert rights
in, or ownership of, trademarks and other proprietary rights of ours or that we
will be able to successfully resolve these types of conflicts to our
satisfaction. In addition, the laws of certain foreign countries may not
protect proprietary rights to the same extent, as do the laws of the United
States.
Intellectual
Property Litigation Could Harm Our Business.
Litigation
regarding patents and other intellectual property rights is extensive in the
technology industry. In the event of an intellectual property dispute, we may
be forced to litigate. This litigation could involve proceedings instituted by
the U.S. Patent and Trademark Office or the International Trade Commission, as
well as proceedings brought directly by affected third parties. Intellectual
property litigation can be extremely expensive, and these expenses, as well as
the consequences should we not prevail, could seriously harm our business.
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If a third party
claims an intellectual property right to technology we use, we might need to
discontinue an important product or product line, alter our products and
processes, pay license fees or cease our affected business activities. Although
we might under these circumstances attempt to obtain a license to this
intellectual property, we may not be able to do so on favorable terms, or at
all. We are currently not aware of any intellectual property rights that are
being infringed nor have we received notice from a third party that we may be
infringing on any of their patents.
Furthermore, a
third party may claim that we are using inventions covered by the third party's
patent rights and may go to court to stop us from engaging in our normal
operations and activities, including making or selling our product candidates.
These lawsuits are costly and could affect our results of operations and divert
the attention of managerial and technical personnel. There is a risk that a
court would decide that we are infringing the third party's patents and would
order us to stop the activities covered by the patents. In addition, there is a
risk that a court will order us to pay the other party damages for having
violated the other party's patents. The technology industry has produced a
proliferation of patents, and it is not always clear to industry participants,
including us, which patents cover various types of products or methods of use.
The coverage of patents is subject to interpretation by the courts, and the
interpretation is not always uniform. If we are sued for patent infringement,
we would need to demonstrate that our products or methods of use either do not
infringe the patent claims of the relevant patent and/or that the patent claims
are invalid, and we may not be able to do this. Proving invalidity, in
particular, is difficult since it requires a showing of clear and convincing
evidence to overcome the presumption of validity enjoyed by issued patents.
Because some
patent applications in the United States may be maintained in secrecy until the
patents are issued, because patent applications in the United States and many
foreign jurisdictions are typically not published until eighteen months after
filing, and because publications in the scientific literature often lag behind
actual discoveries, we cannot be certain that others have not filed patent
applications for technology covered by our licensors' issued patents or our
pending applications or our licensors' pending applications or that we or our
licensors were the first to invent the technology. Our competitors may have
filed, and may in the future file, patent applications covering technology
similar to ours. Any such patent application may have priority over our or our
licensors' patent applications and could further require us to obtain rights to
issued patents covering such technologies. If another party has filed a United
States patent application on inventions similar to ours, we may have to
participate in an interference proceeding declared by the United States Patent
and Trademark Office to determine priority of invention in the United States.
The costs of these proceedings could be substantial, and it is possible that
such efforts would be unsuccessful, resulting in a loss of our United States
patent position with respect to such inventions.
Some of our
competitors may be able to sustain the costs of complex patent litigation more
effectively than we can because they have substantially greater resources. In
addition, any uncertainties resulting from the initiation and continuation of
any litigation could have a material adverse effect on our ability to raise the
funds necessary to continue our operations.
Risks
Relating to Our Common Stock
If
We Fail to Remain Current on Our Reporting Requirements, We Could be Removed
From the OTC Bulletin Board Which Would Limit
the Ability of Broker-Dealers to
Sell
Our Securities and the Ability of Stockholders to Sell Their Securities in
the Secondary Market.
Companies trading
on the OTC Bulletin Board, such as us, must be reporting issuers under Section
13 or 15(d) of the Securities Exchange Act of 1934, as amended, and must be
current in their reports under Section 13, in order to maintain price quotation
privileges on the OTC Bulletin Board. If we fail to remain current on our
reporting requirements, we could be removed from the OTC Bulletin Board. As a
result, the market liquidity for our securities could be severely adversely
affected by limiting the ability of broker-dealers to sell our securities and
the ability of stockholders to sell their securities in the secondary market.
Prior to May 2001 and new management, we were delinquent in our reporting
requirements, having failed to file our quarterly and annual reports for the
years ended 1998 — 2000 (except the quarterly reports for the first two
quarters of 1999). We have also been delinquent in filing recent quarterly and
annual reports, the last being our 10-KSB for the year 2004. There can be no
assurance that in the future we will always be current in our reporting
requirements.
Our
Common Stock is Subject to the "Penny Stock" Rules of the SEC and the
Trading Market in Our Securities is Limited,
Which Makes Transactions in Our
Stock
Cumbersome and May Reduce the Value of an Investment in Our Stock.
The Securities and
Exchange Commission has adopted Rule 15g-9 which establishes the definition of
a "penny stock," for the purposes relevant to us, as any equity security that
has a market price of less than $5.00 per share or with an exercise price of
less than $5.00 per share, subject to certain exceptions. For any transaction
involving a penny stock, unless exempt, the rules require:
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11
·
that a broker or dealer approve a person's
account for transactions in penny stocks; and
·
the
broker or dealer receive from the investor a written agreement to the
transaction, setting forth the identity and quantity of the penny stock to be
purchased.
In order to
approve a person's account for transactions in penny stocks, the broker or
dealer must:
·
obtain
financial information and investment experience objectives of the person; and
·
make
a reasonable determination that the transactions in penny stocks are suitable
for that person and the person has sufficient knowledge and experience in
financial matters to be capable of evaluating the risks of transactions in
penny stocks.
The broker or
dealer must also deliver, prior to any transaction in a penny stock, a
disclosure schedule prescribed by the Commission relating to the penny stock
market, which, in highlight form:
·
sets
forth the basis on which the broker or dealer made the suitability
determination; and
·
that
the broker or dealer received a signed, written agreement from the investor
prior to the transaction.
Generally, brokers
may be less willing to execute transactions in securities subject to the "penny
stock" rules. This may make it more difficult for investors to dispose of our
common stock and cause a decline in the market value of our stock.
Disclosure also
has to be made about the risks of investing in penny stocks in both public
offerings and in secondary trading and about the commissions payable to both
the broker-dealer and the registered representative, current quotations for the
securities and the rights and remedies available to an investor in cases of
fraud in penny stock transactions. Finally, monthly statements have to be sent
disclosing recent price information for the penny stock held in the account and
information on the limited market in penny stocks.
CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS
We and our
representatives may from time to time make written or oral statements that are "forward-looking,"
including statements contained in this prospectus and other filings with the
Securities and Exchange Commission, reports to our stockholders and news releases.
All statements that express expectations, estimates, forecasts or projections
are forward-looking statements. In addition, other written or oral statements
which constitute forward-looking statements may be made by us or on our behalf.
Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "projects," "forecasts," "may," "should," variations of such words
and similar expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and involve risks,
uncertainties, and assumptions which are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or
forecasted in or suggested by such forward-looking statements. Among the
important factors on which such statements are based are assumptions concerning
our ability to obtain additional funding, our ability to compete against our
competitors, our ability to integrate our acquisitions and our ability to
attract and retain key employees.
DETERMINATION
OF OFFERING PRICE
The selling security holders
may sell the common shares issued to them from time-to-time at prices and at
terms then prevailing or at prices related to the then current market price, or
in negotiated transactions.
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12
USE OF
PROCEEDS
We will not receive any
proceeds from the sale of common shares by the selling shareholders pursuant to
this prospectus. All of the 3,650,000 common shares which may be offered
pursuant to this
reoffer prospectus
underlie stock options granted under our 2004 Stock Incentive Plan. All
proceeds, if any, from the exercise of these future options will be added to
our working capital.
The selling shareholders
will receive all proceeds from the sales of these common shares, and they will
pay any and all expenses incurred by them for brokerage, accounting or tax
services (or any other expenses incurred by them in disposing of their common
shares).
SELLING
SHAREHOLDERS
The selling shareholders named in this prospectus (the
"Selling Shareholders") are offering all of the 3,650,000 shares offered through this prospectus. The common
shares are comprised of 3,650,000 shares
that may be sold pursuant to the exercise of stock options granted to the
selling shareholders pursuant to our 2004 Stock Incentive Plan.
If, subsequent to the date of this
reoffer prospectus
, we grant any further awards under the
2004 Stock Incentive Plan to any Eligible Participants who are affiliates of
our company (as defined in Rule 405 under the Securities Act), Instruction C of
Form S-8 requires that we supplement this
reoffer prospectus
with the names of such affiliates and the amounts of securities to be reoffered
by them as selling stockholders.
The following table provides, as of November 30, 2006,
information regarding the beneficial ownership of our common shares held by
each of the selling shareholders, including:
1.
the
number of common shares owned by each selling shareholder prior to this
offering;
2.     the total
number of common shares that are to be offered by each selling shareholder;
3.
the
total number of common shares that will be owned by each selling shareholder
upon completion of the offering;
4.
the
percentage owned by each selling shareholder; and
5.
the
identity of the beneficial holder of any entity that owns the common shares.
Information with respect to beneficial ownership is
based upon information obtained from the selling shareholders. Information with
respect to "Shares Beneficially Owned Prior to the Offering" includes the
shares issuable upon exercise of the stock options held by the selling
shareholders to the extent these options are exercisable within 60 days of
November 30, 2006. The "Number of Shares Being Offered" includes the common
shares that may be acquired by the selling shareholders pursuant to the
exercise of stock options granted to the selling shareholders pursuant to our
2004 Stock Incentive Plan. Information with respect to "Shares Beneficially
Owned After the Offering" assumes the sale of all of the common shares offered
by this prospectus and no other purchases or sales of our common shares by the
selling shareholders. Except as described below and to our knowledge, the named
selling shareholder beneficially owns and has sole voting and investment power
over all common shares or rights to these common shares.
Because the selling shareholders may offer all or part
of the common shares currently owned or the common shares received upon
exercise of the options, which they own pursuant to the offering contemplated
by this
reoffer prospectus
, and because its
offering is not being underwritten on a firm commitment basis, no estimate can
be given as to the amount of options that will be held upon termination of this
offering. The common shares currently owned and the common shares received upon
exercise of the options offered by this
reoffer prospectus
may be offered from time to time by the selling shareholders named below.
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13
Shares Beneficially Owned
Prior To This Offering (1)
Number of
Shares Being
Shares Beneficially Owned Upon
Completion of the Offering (1)
Name of Selling Shareholder
Number
Percent (2)
Offered
Number
Percent (2)
William
  McCormick
2,226,722
(3)
2.9
%
2,250,000
389,236
*
Mark
  Walter
483,333
(4)
*
1,200,000
166,666
*
Mike
  Stansell
127,100
(5)
*
50,000
77,100
*
Randy
  Reed
100,000
(6)
*
100,000
0
*
Gary D.
  Conley
50,000
(7)
*
50,000
0
*
Totals:
2,987,155
3,650,000
633,002
*
*
less
then 1%.
**
The
address for the above listed officers and directors is c/o Microfield Group,
Inc., 111 SW Columbia, Suite 400, Portland, OR 97201.
1.
Under
Rule 13d-3, a beneficial owner of a security includes any person who, directly
or indirectly, through any contract, arrangement, understanding, relationship,
or otherwise has or shares: (i) voting power, which includes the power to vote,
or to direct the voting of shares; and (ii) investment power, which includes
the power to dispose or direct the disposition of shares. Certain shares may be
deemed to be beneficially owned by more than one person (if, for example,
persons share the power to vote or the power to dispose of the shares). In
addition, shares are deemed to be beneficially owned by a person if the person
has the right to acquire the shares (for example, upon exercise of an option)
within 60 days of the date as of which the information is provided. In
computing the percentage ownership of any person, the amount of shares
outstanding is deemed to include the amount of shares beneficially owned by
such person (and only such person) by reason of these acquisition rights. As a
result, the percentage of outstanding shares of any person as shown in this
table does not necessarily reflect the person's actual ownership or voting
power with respect to the number of common shares actually outstanding on
November 30, 2006.
2.
Applicable
percentage of ownership is based on 75,552,437 common shares outstanding as of
November 30, 2006.
3.
Includes
263,158 common equivalent preferred shares outstanding as of November 30, 2006
and 1,837,486 warrants and options convertible into common stock within 60 days
after November 30, 2006.
4.
Includes
483,333 options convertible into common stock within 60 days after November 30,
2006.
5.
Includes
50,000 options convertible into common stock within 60 days after November 30,
2006.
6.
Includes
100,000 options convertible into common stock within 60 days after November 30,
2006.
7.
Includes
50,000 options convertible into common stock within 60 days after November 30,
2006.
Since our company does not currently
meet the registrant requirements for use of Form S-3, the amount of common
shares which may be resold by means of this reoffer prospectus by each of the
selling stockholders, and any other person with whom he or she is acting in
concert for the purpose of selling securities of our company, must not exceed,
in any three month period, the amount specified in Rule 144(e) promulgated
under the Securities Act.
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14
PLAN OF
DISTRIBUTION
Timing of Sales
The selling stockholders may offer and sell the shares
covered by this prospectus at various times. The selling stockholders will act
independently of our company in making decisions with respect to the timing,
manner and size of each sale.
No Known Agreements to Resell the Shares
To our knowledge,
no selling stockholder has any agreement or understanding, directly or
indirectly, with any person to resell the common shares covered by this
prospectus.
Offering Price
The sales price offered by the selling stockholders to
the public may be:
1.
the
market price prevailing at the time of sale;
2.
a
price related to such prevailing market price; or
3.
such
other price as the selling shareholders determine from time to time.
Manner of Sale
The common shares may be sold by means of one or more
of the following methods:
1.
a
block trade in which the broker-dealer so engaged will attempt to sell the
common shares as agent, but may position and resell a portion of the block as
principal to facilitate the transaction;
2.
purchases
by a broker-dealer as principal and resale by that broker-dealer for its
account pursuant to this prospectus;
3.
ordinary
brokerage transactions in which the broker solicits purchasers;
4.
through
options, swaps or derivatives;
5.
in
transactions to cover short sales;
6.
privately
negotiated transactions; or
7.
in
a combination of any of the above methods.
The selling shareholders may sell their common shares
directly to purchasers or may use brokers, dealers, underwriters or agents to
sell their common shares. Brokers or dealers engaged by the selling
shareholders may arrange for other brokers or dealers to participate. Brokers
or dealers may receive commissions, discounts or concessions from the selling
shareholders, or, if any such broker-dealer acts as agent for the purchaser of
common shares, from the purchaser in amounts to be negotiated immediately prior
to the sale. The compensation received by brokers or dealers may, but is not
expected to, exceed that which is customary for the types of transactions involved.
Broker-dealers may agree with a selling shareholder to
sell a specified number of common shares at a stipulated price per common
share, and, to the extent the broker-dealer is unable to do so acting as agent
for a selling shareholder, to purchase as principal any unsold common shares at
the price required to fulfill the broker-dealer commitment to the selling
shareholder.
Broker-dealers who acquire common shares as principal
may thereafter resell the common shares from time to time in transactions, which
may involve block transactions and sales to and through other broker-dealers,
including transactions of the nature described above, in the over-the-counter
market or otherwise at prices and on terms then prevailing at the time of sale,
at prices then related to the then-current market price or in negotiated
transactions. In connection with resales of the common shares, broker-dealers
may pay to or receive from the purchasers of shares commissions as described
above.
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If our selling shareholders enter into arrangements
with brokers or dealers, as described above, we are obligated to file a
post-effective amendment to this registration statement disclosing such
arrangements, including the names of any broker-dealers acting as underwriters.
The selling shareholders and any broker-dealers or
agents that participate with the selling shareholders in the sale of the common
shares may be deemed to be "underwriters" within the meaning of the Securities
Act. In that event, any commissions received by broker-dealers or agents and
any profit on the resale of the common shares purchased by them may be deemed
to be underwriting commissions or discounts under the Securities Act.
Sales Pursuant to Rule 144
Any common shares covered by this prospectus which
qualify for sale pursuant to Rule 144 under the Securities Act may be sold
under Rule 144 rather than pursuant to this prospectus.
Regulation M
The selling shareholders must comply with the
requirements of the Securities Act and the Exchange Act in the offer and sale
of the common stock. In particular we will advise the selling shareholders that
the anti-manipulation rules of Regulation M under the Exchange Act may
apply to sales of common shares in the market and to the activities of the
selling shareholders and their affiliates. Regulation M under the Exchange
Act prohibits, with certain exceptions, participants in a distribution from
bidding for, or purchasing for an account in which the participant has a
beneficial interest, any of the securities that are the subject of the
distribution.
Accordingly, during such times as a selling
shareholder may be deemed to be engaged in a distribution of the common stock,
and therefore be considered to be an underwriter, the selling shareholder must
comply with applicable law and, among other things:
1.
may
not engage in any stabilization activities in connection with our common stock;
2.
may
not cover short sales by purchasing shares while the distribution is taking
place; and
3.
may
not bid for or purchase any of our securities or attempt to induce any person
to purchase any of our securities other than as permitted under the Exchange
Act.
In addition, we will make copies of this prospectus
available to the selling shareholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act.
Penny Stock Rules
The SEC has adopted regulations which generally define
"penny stock" to be any equity security that has a market price (as defined) of
less than $5.00 per share or an exercise price of less than $5.00 per share,
subject to certain exceptions. Our securities are covered by the penny stock
rules, which impose additional sales practice requirements on broker-dealers
who sell to persons other than established customers and "institutional
accredited investors." The term "institutional accredited investor" refers
generally to those accredited investors who are not natural persons and fall
into one of the categories of accredited investor specified in subparagraphs
(1), (2), (3), (7) or (8) of Rule 501 of Regulation D promulgated
under the Securities Act, including institutions with assets in excess of
$5,000,000.
The penny stock rules require a broker-dealer, prior
to a transaction in a penny stock not otherwise exempt from the rules, to
deliver a standardized risk disclosure document in a form required by the
Securities and Exchange Commission, obtain from the customer a signed and dated
acknowledgement of receipt of the disclosure document and to wait two business
days before effecting the transaction. The risk disclosure document provides
information about penny stocks and the nature and level of risks in the penny
stock market. The broker-dealer also must provide the customer with current bid
and offer quotations for the penny stock, the compensation of the broker-dealer
and its salesperson in the transaction and monthly account statements showing
the market value of each penny stock held in the customer's account.
The bid and offer quotations, and the broker-dealer
and salesperson compensation information, must be given to the customer orally
or in writing prior to effecting the transaction and must be given to the
customer in writing before or with the customer's confirmation. In addition,
the penny stock rules require that prior to a transaction in a penny stock not
otherwise exempt from these rules, the broker-dealer must make a special
written determination that the penny stock is a suitable investment for the
purchaser and receive the purchaser's written agreement to the transaction.
P-
16
These disclosure requirements may have the effect of
reducing the level of trading activity in the secondary market for the stock
that is subject to these penny stock rules. Consequently, these penny stock
rules may affect the ability of broker-dealers to trade our securities. We
believe that the penny stock rules discourage investor interest in and limit
the marketability of our common stock.
State Securities Laws
Under the securities laws of some states, the common
shares may be sold in such states only through registered or licensed brokers
or dealers. In addition, in some states the common shares may not be sold
unless the shares have been registered or qualified for sale in the state or an
exemption from registration or qualification is available and is complied with.
Expenses of Registration
We are bearing all costs relating to the registration
of the common stock. These expenses are estimated to be $15,000, including, but
not limited to, legal, accounting, printing and mailing fees. The selling
shareholders, however, will pay any commissions or other fees payable to
brokers or dealers in connection with any sale of the common stock.
LEGAL
MATTERS
Dunn Carney Allen
Higgin & Tongue LLP of Portland, Oregon will issue an opinion with respect
to the validity of the shares of common stock being offered hereby.
EXPERTS
Russell Bedford
Stefanou Mirchandani LLP, independent registered public accounting firm, has
audited our financial statements at December 31, 2005 and January 1, 2005 and
for the years then ended.
The financial
statements incorporated in this Prospectus by reference to the Annual Report on
Form 10-KSB for the year ended January 3, 2004 have been so
incorporated in reliance on the report (which contains an explanatory paragraph
relating to the Company's ability to continue as a going concern as described
in Note 2 to the financial statements) of PricewaterhouseCoopers LLP, an
independent registered public accounting firm, given on the authority of said
firm as experts in auditing and accounting.
INFORMATION INCORPORATED BY REFERENCE
The
Securities and Exchange Commission allows us to incorporate by reference
certain of our publicly-filed documents into this prospectus, which means that
such information is considered part of this prospectus.  Information that we file with the SEC
subsequent to the date of this prospectus will automatically update and
supersede this information.  We
incorporate by reference the documents listed below and any future filings made
with the SEC under all documents subsequently filed by us pursuant to Section
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 until the
selling stockholders have sold all of the shares offered hereby or such shares
have been deregistered.
The
following documents filed with the SEC are incorporated herein by reference:
·
Reference
is made to the Registrant's annual report on Form 10-KSB for the period ending
December 31, 2005, as filed with the SEC on April 6, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's annual report on Form 10-KSB/A for the period
ending December 31, 2005, as filed with the SEC on June 1, 2006, which is
hereby incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q for the period ending
April 1, 2006, as filed with the SEC on May 16, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q/A for the period
ending April 1, 2006, as filed with the SEC on June 1, 2006, which is hereby
incorporated by reference.
P-
17
·
Reference
is made to the Registrant's quarterly report on Form 10-Q for the period ending
July 1, 2006, as filed with the SEC on August 11, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q/A for the period
ending July 1, 2006, as filed with the SEC on August 18, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q for the period ending
September 30, 2006 as filed with the SEC on November 20, 2006, which is hereby
incorporated by reference.
·
Reference
is made to Registrant's Current Report filed on Form 8-K filed with the SEC on
July 7, 2006, which is hereby incorporated by reference.
·
Reference
is made to Registrant's Current Report filed on Form 8-K filed with the SEC on
November 9, 2006, which is hereby incorporated by reference.
·
Reference
is made to the report of Independent Registered Public Accounting Firm for the
year ended January 3, 2004 and the related financial statements and notes
thereto on Form S-1/A, filed with the Commission on September 26, 2006.
·
Reference
is made to the description of the Registrant's common stock as contained on
page 54 of its Registration Statement on Form S-1/A, filed with the Commission
on September 26, 2006, including all amendments and reports filed with the
Commission for the purpose of updating such description, which is hereby
incorporated by reference.
We will provide without
charge to each person to whom a copy of this prospectus has been delivered, on
written or oral request a copy of any or all of the documents incorporated by
reference in this prospectus, other than exhibits to such documents.  Written or oral requests for such copies
should be directed to Rodney M. Boucher.
DISCLOSURE OF COMMISSION POSITION ON
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Our Articles of
Incorporation, as amended, provide to the fullest extent permitted by Oregon
law, our directors or officers shall not be personally liable to us or our
shareholders for damages for breach of such director's or officer's fiduciary
duty. The effect of this provision of our Articles of Incorporation, as
amended, is to eliminate our rights and our shareholders (through shareholders'
derivative suits on behalf of our company) to recover damages against a
director or officer for breach of the fiduciary duty of care as a director or
officer (including breaches resulting from negligent or grossly negligent behavior),
except under certain situations defined by statute. We believe that the
indemnification provisions in our Articles of Incorporation, as amended, are
necessary to attract and retain qualified persons as directors and officers. In
addition, we have entered into indemnification agreements with our officers and
directors.
Insofar as
indemnification for liabilities arising under the Securities Act of 1933 (the "Act"
or "Securities Act") may be permitted to directors, officers or persons
controlling us pursuant to the foregoing provisions, or otherwise, we have been
advised that in the opinion of the Securities and Exchange Commission, such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable.
ADDITIONAL INFORMATION AVAILABLE TO YOU
This
prospectus is part of a Registration Statement on Form S-8 that we filed with
the SEC.  Certain information in the
Registration Statement has been omitted from this prospectus in accordance with
the rules of the SEC.  We file annual,
quarterly and special reports, proxy statements and other information with the
SEC.  You can inspect and copy the
Registration Statement as well as reports, proxy statements and other
information we have filed with the SEC at the public reference room maintained
by the SEC at 100 F Street N.E. Washington, D.C. 20549, You can obtain copies
from the public reference room of the SEC at 100 F Street N.E. Washington, D.C.
20549, upon payment of certain fees.  You
can call the SEC at 1-800-732-0330 for further information about the public
reference room.  We are also required to
file electronic versions of these documents with the SEC, which may be accessed
through the SEC's World Wide Web site at http://www.sec.gov.  No dealer, salesperson or other person is
authorized to give any information or to make any representations other than
those contained in this prospectus, and, if given or made, such information or
representations must not be relied upon as having been authorized by us.  This prospectus does not constitute an offer
to buy any security other than the securities offered by this prospectus, or an
offer to sell or a solicitation of an offer to buy any securities by any person
in any jurisdiction where such offer or solicitation is not authorized or is
unlawful. Neither delivery of this prospectus nor any sale hereunder shall,
under any circumstances, create any implication that there has been no change
in the affairs of our company since the date hereof.
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18
MICROFIELD GROUP,
INC.
3,650,000
shares
of Common Stock to be Offered and Sold by Selling Stockholders
December 26, 2006
PROSPECTUS
No dealer, salesman or other person has been
  authorized to give any information or to make any representations other than
  those contained in this reoffer prospectus. Any information or
  representations not herein contained, if given or made, must not be relied
  upon as having been authorized by Microfield Group, Inc. This reoffer
  prospectus does not constitute an offer or solicitation in respect to these
  securities in any jurisdiction in which such offer or solicitation would be
  unlawful. The delivery of this reoffer prospectus shall not, under any
  circumstances, create any implication that there has been no change in the
  affairs of Microfield Group, Inc. or that the information contained herein is
  correct as of any time subsequent to the date of this reoffer prospectus.
  However, in the event of a material change, this reoffer prospectus will be
  amended or supplemented accordingly.
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19
Part II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item 3.    Incorporation of Documents by Reference.
The Registrant hereby incorporates by reference into this Registration
Statement the documents listed below. In addition, all documents subsequently
filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities
Exchange Act of 1934 (the "Exchange Act"), prior to the filing of a
post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities then remaining unsold, shall be deemed
to be incorporated by reference into this Registration Statement and to be a
part hereof from the date of filing of such documents:
The following documents filed with the
SEC are incorporated herein by reference:
·
Reference
is made to the Registrant's annual report on Form 10-KSB for the period ending
December 31, 2005, as filed with the SEC on April 6, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's annual report on Form 10-KSB/A for the period
ending December 31, 2005, as filed with the SEC on June 1, 2006, which is
hereby incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q for the period ending
April 1, 2006, as filed with the SEC on May 16, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q/A for the period
ending April 1, 2006, as filed with the SEC on June 1, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q for the period ending
July 1, 2006, as filed with the SEC on August 11, 2006, which is hereby
incorporated by reference.
·
Reference
is made to the Registrant's quarterly report on Form 10-Q/A for the period
ending July 1, 2006, as filed with the SEC on August 18, 2006, which is hereby
incorporated by reference.
·
Reference
is made to Registrant's quarterly report filed on Form 10-Q filed with the SEC
on November 20, 2006, which is hereby incorporated by reference
·
Reference
is made to Registrant's Current Report filed on Form 8-K filed with the SEC on
July 7, 2006, which is hereby incorporated by reference.
·
Reference
is made to Registrant's Current Report filed on Form 8-K filed with the SEC on
November 9, 2006, which is hereby incorporated by reference.
·
Reference
is made to the report of Independent Registered Public Accounting Firm for the
year ended January 3, 2004 and the related financial statements and notes
thereto on Form S-1/A, filed with the Commission on September 26, 2006.
·
Reference
is made to the description of the Registrant's common stock as contained on
page 54 of its Registration Statement on Form S-1/A, filed with the Commission
on September 26, 2006, including all amendments and reports filed with the
Commission for the purpose of updating such description, which is hereby
incorporated by reference.
Item 4.
Description of Securities.
Not
Applicable.
Item 5.    Interests of Named Experts and Counsel.
No expert or counsel named in this Registration
Statement as having prepared or certified any part of this Registration
Statement or having given an opinion upon the validity of the securities being
registered or upon other legal matters in connection with the registration or
offering of the common stock was employed on a contingency basis, or had, or is
to receive, in connection with the offering, a substantial interest, direct or
indirect, in the Registrant, nor was any such person connected with the
Registrant as a promoter, managing or principal underwriter, voting trustee,
director, officer or employee.
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Item 6.    Indemnification of Directors and Officers.
Our Articles of Incorporation, as amended, provide to
the fullest extent permitted by Oregon law, our directors or officers shall not
be personally liable to us or our shareholders for damages for breach of such
director's or officer's fiduciary duty. The effect of this provision of our
Articles of Incorporation, as amended, is to eliminate our rights and our
shareholders (through shareholders' derivative suits on behalf of our company)
to recover damages against a director or officer for breach of the fiduciary
duty of care as a director or officer (including breaches resulting from
negligent or grossly negligent behavior), except under certain situations
defined by statute. We believe that the indemnification provisions in our
Articles of Incorporation, as amended, are necessary to attract and retain
qualified persons as directors and officers. In addition, we have entered into
indemnification agreements with our officers and directors.
Insofar as indemnification for liabilities arising
under the Securities Act of 1933 (the "Act" or "Securities Act") may be
permitted to directors, officers or persons controlling us pursuant to the foregoing
provisions, or otherwise, we have been advised that in the opinion of the
Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable.
Item 7.    Exemption from Registration Claimed.
Not applicable.
Item 8.    Exhibits.
EXHIBIT
NUMBER
EXHIBIT
4.1
Amended 2004 Stock
  Incentive Plan
4.2
Restated 1995 Stock
  Incentive Plan (incorporated by reference to Exhibit 10.12 of the
  Company's Form 10-QSB for the quarterly period ended July 3, 1999).
5.1
Opinion of Dunn Carney
  Allen Higgin & Tongue LLP.
23.1
Consent of Dunn Carney
  Allen Higgin & Tongue LLP (contained in Exhibit 5.1).
23.2
Consent of Russell
  Bedford Stefanou Mirchandani LLP.
23.3
Consent of PricewaterhouseCoopers LLP
Item 9.    Undertakings.
(a)
The undersigned registrant hereby undertakes:
(1) To file, during
any period in which offers or sales are being made, a post-effective amendment
to this registration statement:
(i) To include any
prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in
the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in
volume and price represent no more than 20 percent change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement;
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(iii) To include any
material information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such
information in the registration statement;
Provided, however
, that paragraphs (1)(i),
and (1)(ii) do not apply if the Registration Statement is on Form S-8 and if
the information required to be included in a post-effective amendment by those
paragraphs is contained in reports filed with or furnished to the Commission by
the Registrant pursuant to section 13 or section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the
registration statement.
(2) That,
for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment 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.
(3) To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.
(4) That,
for purposes of determining any liability under the Securities Act of 1933,
each filing of the registrant's annual report pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (and, where applicable, each
filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement 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.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 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 Securities and Exchange Commission 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 Act and will be governed by the final adjudication of such
issue.
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SIGNATURES
In accordance with
the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Form S-8 to
be signed on its behalf by the undersigned, thereunto duly authorized, in the
City of Portland, State of Oregon, on December 26, 2006.
MICROFIELD GROUP, INC.
By:
/s/ Rodney M. Boucher
Rodney M. Boucher,
Chief Executive
  Officer (Principal Executive Officer)
By:
/s/ Randall R. Reed
Randall R. Reed,
Chief Financial
  Officer (Principal Financial and Accounting Officer)
In accordance with
the requirements of the Securities Act of 1933, as amended, this Form S-8 has
been signed below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.
Signature
Title
Date
/s/ Rodney M. Boucher
Chief Executive Officer
  and Director (Principal
December 26, 2006
Rodney M. Boucher
Executive Officer)
/s/ A. Mark Walter
President and Director
December 26, 2006
A. Mark Walter
/s/ Randall R. Reed
Chief Financial Officer
(
Principal Financial
December 26, 2006
Randall R. Reed
and
  Accounting Officer)
/s/ Gary D. Conley
Director
December 26, 2006
Gary D. Conley
/s/ Gene Ameduri
Director
December 26, 2006
Gene Ameduri
/s/ William C. McCormick
Director
December 26, 2006
William C. McCormick
/s/ Michael W. Stansell
Director
December 26, 2006
Michael W. Stansell
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