<table>
<tbody><tr style="font-size:1px">
<td width="5%" valign="TOP">
<p>&nbsp;</p>
</td>
<td width="5%" valign="TOP">
<p>&nbsp;</p>
</td>
<td width="5%" valign="TOP">
<p>&nbsp;</p>
</td>
<td width="85%" valign="TOP">
<p>&nbsp;</p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="2">(10)</font></p>
</td>
<td colspan="3" valign="TOP">
<p><font size="2"><u>Related Party Transactions
  (Continued)</u></font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="2" face="symbol">·</font></p>
</td>
<td valign="TOP">
<p align="justify"><font size="2">Up to an additional 50,000
  shares of restricted Common Stock per year based on the achievement of annual
  targets approved by the Company’s Board of Directors.  </font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td colspan="2" valign="TOP">
<p align="justify"><font size="2">In addition, pursuant to
  the employment agreement, in the event that Mr. Tarzian’s employment is
  terminated by the Company without “Cause” or by Mr. Tarzian for “Good
  Reason”, Mr. Tarzian will be entitled to six months severance pay. In
  connection with Mr. Tarzian’s appointment as President and Chief Executive
  Officer, the Company’s Board of Directors approved compensation for Mr.
  Particelli, as the Company’s non-executive Chairman of the Board following
  such appointment, in the amount of $100,000 per annum.</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="2">(11)</font></p>
</td>
<td colspan="3" valign="TOP">
<p><font size="2"><u>Leases</u></font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td colspan="3" valign="TOP">
<p align="justify"><font size="2">The
  Company has several non-cancelable operating leases, primarily for property,
  that expire through 2015.  One of the
  Company’s facilities is leased from the former owner of Optimum, who is also
  a former director of the Company.
  This lease expires in December 2010.
  The Company incurred rent expense under this related party lease in
  Fiscal 2008 and 2007 in the amounts of approximately $178,000 and $173,000,
  respectively.  Rent expense for the
  years ended March 31, 2008 and 2007 amounted to approximately $1,314,000 and
  $1,456,000, respectively.  Future
  non-cancelable minimum lease payments under all of the leases as of March 31,
  2008 are as follows:</font></p>
</td>
</tr>
</tbody></table>
<table>
<tbody><tr>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p><font>(10)</font></p>
</td>
<td>
<p><font><u>Related Party Transactions
  (Continued)</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>·</font></p>
</td>
<td>
<p><font>Up to an additional 50,000
  shares of restricted Common Stock per year based on the achievement of annual
  targets approved by the Company’s Board of Directors.  </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In addition, pursuant to
  the employment agreement, in the event that Mr. Tarzian’s employment is
  terminated by the Company without “Cause” or by Mr. Tarzian for “Good
  Reason”, Mr. Tarzian will be entitled to six months severance pay. In
  connection with Mr. Tarzian’s appointment as President and Chief Executive
  Officer, the Company’s Board of Directors approved compensation for Mr.
  Particelli, as the Company’s non-executive Chairman of the Board following
  such appointment, in the amount of $100,000 per annum.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font>(11)</font></p>
</td>
<td>
<p><font><u>Leases</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The
  Company has several non-cancelable operating leases, primarily for property,
  that expire through 2015.  One of the
  Company’s facilities is leased from the former owner of Optimum, who is also
  a former director of the Company.
  This lease expires in December 2010.
  The Company incurred rent expense under this related party lease in
  Fiscal 2008 and 2007 in the amounts of approximately $178,000 and $173,000,
  respectively.  Rent expense for the
  years ended March 31, 2008 and 2007 amounted to approximately $1,314,000 and
  $1,456,000, respectively.  Future
  non-cancelable minimum lease payments under all of the leases as of March 31,
  2008 are as follows:</font></p>
</td>
</tr>
</tbody></table>