| Delaware                                                      |   | 16-1434688                              |
|---------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdictionof incorporation or organization) |   | (I.R.S. Employer Identification Number) |
|  PAR Technology Park                                     |   |                                    |
| 8383 Seneca Turnpike                                          |   |                                    |
| New Hartford, New York                                        |   | 13413-4991                              |
| (Address of principal executive offices)                      |   | (Zip Code)                              |

| Large Accelerated Filer o | Accelerated Filer x | Non Accelerated Filer o | Smaller Reporting Company x |
|---------------------------|---------------------|-------------------------|-----------------------------|

----

| Item Number   |   |                                                                                  |   | Page   |
|---------------|--------|---------------------------------------------------------------------------------------|--------|--------|
|          |   |                                                                                  |   |   |
| Item 1.       |   | Financial Statements (unaudited)                                                      |   |   |
|          |   |                                                                                  |   |   |
|          |   | Consolidated Statements of Operations for                                             |   | 1      |
|          |   | the three and nine months ended September 30, 2010 and 2009                           |   |   |
|          |   |                                                                                  |   |   |
|          |   | Consolidated Statements of Comprehensive Income (loss)                                |   | 2      |
|          |   | for the three and nine months ended September 30, 2010and 2009                        |   |   |
|          |   |                                                                                  |   |   |
|          |   | Consolidated Balance Sheets at                                                        |   | 3      |
|          |   | September 30, 2010 and December 31, 2009                                              |   |   |
|          |   |                                                                                  |   |   |
|          |   | Consolidated Statements of Cash Flows                                                 |   | 4      |
|          |   | for the nine months ended September 30, 2010 and 2009                                 |   |   |
|          |   |                                                                                  |   |   |
|          |   | Notes to Unaudited Interim Consolidated Financial Statements                          |   | 5      |
|          |   |                                                                                  |   |   |
| Item 2.       |   | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 11     |
|          |   |                                                                                  |   |   |
| Item 3.       |   | Quantitative and Qualitative Disclosures About Market Risk                            |   | 21     |
|          |   |                                                                                  |   |   |
| Item 4.       |   | Controls and Procedures                                                               |   | 21     |
|          |   |                                                                                  |   |   |
|          |   | PART II                                                                               |   |   |
|          |   | OTHER INFORMATION                                                                     |   |   |
|          |   |                                                                                  |   |   |
|          |   |                                                                                  |   |   |
|          |   |                                                                                  |   |   |
| Item 1A.      |   | Risk Factors                                                                          |   | 22     |
|          |   |                                                                                  |   |   |
| Item 4.       |   | RESERVED                                                                              |   | 22     |
|          |   |                                                                                  |   |   |
| Item 5.       |   | Other Information                                                                     |   | 22     |
|          |   |                                                                                  |   |   |
| Item 6.       |   | Exhibits                                                                              |   | 23     |
|          |   |                                                                                  |   |   |
| Signatures    |   |                                                                                  |   | 24     |
|          |   |                                                                                  |   |   |
| Exhibit Index |   |                                                                                  |   | 25     |

----

|                                            |   | For the three monthsended September 30, |   |   | For the nine monthsended September 30, |   |
|-------------------------------------------------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|
| Net revenues:                                   |   | 2010                                    |   | 2009   |                                   |   | 2010 |   |   | 2009 |   |
| Product                                         |   | $                                       | 27,850 |   |                                   | $      | 15,222 |   |   | $ | 72,185 |   |   | $ | 52,637 |   |
| Service                                         |   |                                    | 17,268 |   |                                   |   | 17,011 |   |   |   | 53,369 |   |   |   | 56,057 |   |
| Contract                                        |   |                                    | 16,053 |   |                                   |   | 17,681 |   |   |   | 49,950 |   |   |   | 56,147 |   |
|                                            |   |                                    | 61,171 |   |                                   |   | 49,914 |   |   |   | 175,504 |   |   |   | 164,841 |   |
| Costs of sales:                                 |   |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Product                                         |   |                                    | 17,865 |   |                                   |   | 10,025 |   |   |   | 47,256 |   |   |   | 34,578 |   |
| Service                                         |   |                                    | 12,192 |   |                                   |   | 11,886 |   |   |   | 36,141 |   |   |   | 39,747 |   |
| Contract                                        |   |                                    | 15,041 |   |                                   |   | 16,598 |   |   |   | 46,854 |   |   |   | 53,062 |   |
|                                            |   |                                    | 45,098 |   |                                   |   | 38,509 |   |   |   | 130,251 |   |   |   | 127,387 |   |
| Gross margin                                    |   |                                    | 16,073 |   |                                   |   | 11,405 |   |   |   | 45,253 |   |   |   | 37,454 |   |
| Operating expenses:                             |   |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative             |   |                                    | 9,995  |   |                                   |   | 8,579 |   |   |   | 29,316 |   |   |   | 26,821 |   |
| Research and development                        |   |                                    | 4,826  |   |                                   |   | 3,771 |   |   |   | 12,592 |   |   |   | 10,127 |   |
| Amortization of identifiable intangible assets  |   |                                    | 234    |   |                                   |   | 371 |   |   |   | 703 |   |   |   | 1,104 |   |
|                                            |   |                                    | 15,055 |   |                                   |   | 12,721 |   |   |   | 42,611 |   |   |   | 38,052 |   |
| Operating income (loss)                         |   |                                    | 1,018  |   |                                   |   | (1,316 | ) |   |   | 2,642 |   |   |   | (598 | ) |
| Other income, net                               |   |                                    | 97     |   |                                   |   | 12 |   |   |   | 516 |   |   |   | 274 |   |
| Interest expense                                |   |                                    | (157   | )      |                                   |   | (106 | ) |   |   | (299 | ) |   |   | (328 | ) |
| Income (loss) before provision for income taxes |   |                                    | 958    |   |                                   |   | (1,410 | ) |   |   | 2,859 |   |   |   | (652 | ) |
| (Provision) benefit for income taxes            |   |                                    | (420   | )      |                                   |   | 632 |   |   |   | (890 | ) |   |   | 359 |   |
| Net income (loss)                               |   | $                                       | 538    |   |                                   | $      | (778 | ) |   | $ | 1,969 |   |   | $ | (293 | ) |
| Earnings (loss) per share                       |   |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   | $                                       | .04    |   |                                   | $      | (.05 | ) |   | $ | .13 |   |   | $ | (.02 | ) |
| Diluted                                         |   | $                                       | .04    |   |                                   | $      | (.05 | ) |   | $ | .13 |   |   | $ | (.02 | ) |
| Weighted average shares outstanding             |   |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   |                                    | 14,879 |   |                                   |   | 14,544 |   |   |   | 14,794 |   |   |   | 14,506 |   |
| Diluted                                         |   |                                    | 15,048 |   |                                   |   | 14,544 |   |   |   | 15,009 |   |   |   | 14,506 |   |

----

|                                           |   | For the three monthsended September 30, |   |   | For the nine monthsended September 30, |   |
|------------------------------------------------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|
|                                           |   | 2010                                    |   |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
| Net income (loss)                              |   | $                                       | 538    |   |                                   | $      | (778 | ) |   | $ | 1,969 |   |   | $ | (293 | ) |
| Other comprehensive income (loss), net of tax: |   |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments       |   |                                    | (5     | )      |                                   |   | 677 |   |   |   | (219 | ) |   |   | 867 |   |
| Comprehensive income (loss)                    |   | $                                       | 533    |   |                                   | $      | (101 | ) |   | $ | 1,750 |   |   | $ | 574 |   |

----

|                                                                                        |   | September 30, |    |   | December 31, |   |
|---------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                                                        |   | 2010          |    |   | 2009         |   |
| AssetsCurrent assets:                                                                       |   |          |    |   |         |   |
| Cash and cash equivalents                                                                   |   | $             | 4,088   |   |         | $      | 3,907 |   |
| Accounts receivable-net                                                                     |   |          | 42,951  |   |         |   | 46,107 |   |
| Inventories-net                                                                             |   |          | 41,052  |   |         |   | 32,867 |   |
| Income tax refunds                                                                          |   |          | 1,253   |   |         |   | 438 |   |
| Deferred income taxes                                                                       |   |          | 5,242   |   |         |   | 6,362 |   |
| Other current assets                                                                        |   |          | 3,664   |   |         |   | 3,235 |   |
| Total current assets                                                                        |   |          | 98,250  |   |         |   | 92,916 |   |
| Property, plant and equipment - net                                                         |   |          | 5,936   |   |         |   | 6,332 |   |
| Deferred income taxes                                                                       |   |          | 1,030   |   |         |   | 1,202 |   |
| Goodwill                                                                                    |   |          | 26,762  |   |         |   | 26,635 |   |
| Intangible assets - net                                                                     |   |          | 9,347   |   |         |   | 7,243 |   |
| Other assets                                                                                |   |          | 2,010   |   |         |   | 1,775 |   |
| Total Assets                                                                                |   | $             | 143,335 |   |         | $      | 136,103 |   |
| Liabilities and Shareholders’ Equity                                                  |   |          |    |   |         |   |   |   |
| Current liabilities:                                                                        |   |          |    |   |         |   |   |   |
| Current portion of long-term debt                                                           |   | $             | 1,635   |   |         | $      | 1,404 |   |
| Borrowings under lines of credit                                                            |   |          | 500     |   |         |   | 2,000 |   |
| Accounts payable                                                                            |   |          | 23,652  |   |         |   | 12,942 |   |
| Accrued salaries and benefits                                                               |   |          | 8,609   |   |         |   | 7,607 |   |
| Accrued expenses                                                                            |   |          | 3,133   |   |         |   | 3,868 |   |
| Customer deposits                                                                           |   |          | 906     |   |         |   | 1,782 |   |
| Deferred service revenue                                                                    |   |          | 13,701  |   |         |   | 16,598 |   |
| Total current liabilities                                                                   |   |          | 52,136  |   |         |   | 46,201 |   |
| Long-term debt                                                                              |   |          | 3,228   |   |         |   | 4,455 |   |
| Other long-term liabilities                                                                 |   |          | 2,551   |   |         |   | 2,212 |   |
| Shareholders’ Equity:                                                                 |   |          |    |   |         |   |   |   |
| Preferred stock, $.02 par value,                                                            |   |          |    |   |         |   |   |   |
| 1,000,000 shares authorized                                                                 |   | ─       |    |   | ─      |   |
| Common stock, $.02 par value,                                                               |   |          |    |   |         |   |   |   |
| 29,000,000 shares authorized;                                                               |   |          |    |   |         |   |   |   |
| 16,741,368 and 16,449,695 shares issued;                                                    |   |          |    |   |         |   |   |   |
|          15,034,084 and 14,796,940 outstanding |   |          | 335     |   |         |   | 329 |   |
| Capital in excess of par value                                                              |   |          | 42,134  |   |         |   | 41,382 |   |
| Retained earnings                                                                           |   |          | 49,451  |   |         |   | 47,482 |   |
| Accumulated other comprehensive loss                                                        |   |          | (668    | )      |         |   | (449 | ) |
| Treasury stock, at cost, 1,707,284 and 1,652,755 shares                                     |   |          | (5,832  | )      |         |   | (5,509 | ) |
| Total shareholders’ equity                                                            |   |          | 85,420  |   |         |   | 83,235 |   |
| Total Liabilities and Shareholders’ Equity                                            |   | $             | 143,335 |   |         | $      | 136,103 |   |

----

|                                                                             |   | For the nine months ended September 30, |   |
|----------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                             |   | 2010                                    |   |   | 2009 |   |
| Cash flows from operating activities:                                            |   |                                    |   |   |   |   |
| Net income                                                                       |   | $                                       | 1,969  |   |   | $ | (293 | ) |
| Adjustments to reconcile net income to net cashprovided by operating activities: |   |                                    |   |   |   |   |   |   |
| Depreciation and amortization                                                    |   |                                    | 2,496  |   |   |   | 2,946 |   |
| Provision for bad debts                                                          |   |                                    | 966    |   |   |   | 1,237 |   |
| Provision for obsolete inventory                                                 |   |                                    | 1,057  |   |   |   | 1,584 |   |
| Equity based compensation                                                        |   |                                    | 212    |   |   |   | 505 |   |
| Deferred income tax                                                              |   |                                    | 1,140  |   |   |   | (166 | ) |
| Changes in operating assets and liabilities:                                     |   |                                    |   |   |   |   |   |   |
| Accounts receivable                                                              |   |                                    | 2,165  |   |   |   | 15,478 |   |
| Inventories                                                                      |   |                                    | (9,202 | ) |   |   | (430 | ) |
| Income tax refunds                                                               |   |                                    | (815   | ) |   |   | (368 | ) |
| Other current assets                                                             |   |                                    | (393   | ) |   |   | 343 |   |
| Other assets                                                                     |   |                                    | (220   | ) |   |   | (110 | ) |
| Accounts payable                                                                 |   |                                    | 10,719 |   |   |   | (6,495 | ) |
| Accrued salaries and benefits                                                    |   |                                    | 978    |   |   |   | (587 | ) |
| Accrued expenses                                                                 |   |                                    | (691   | ) |   |   | (752 | ) |
| Customer deposits                                                                |   |                                    | (876   | ) |   |   | (4,060 | ) |
| Deferred service revenue                                                         |   |                                    | (2,915 | ) |   |   | (2,810 | ) |
| Other long-term liabilities                                                      |   |                                    | 339    |   |   |   | 182 |   |
| Net cash provided by operating activities                                        |   |                                    | 6,929  |   |   |   | 6,204 |   |
| Cash flows from investing activities:                                            |   |                                    |   |   |   |   |   |   |
| Capital expenditures                                                             |   |                                    | (3,519 | ) |   |   | (1,045 | ) |
| Capitalization of software costs                                                 |   |                                    | (669   | ) |   |   | (553 | ) |
| Contingent purchase price paid on prior year acquisitions                        |   |                                    | (33    | ) |   |   | (54 | ) |
| Net cash used in investing activities                                            |   |                                    | (4,221 | ) |   |   | (1,652 | ) |
| Cash flows from financing activities:                                            |   |                                    |   |   |   |   |   |   |
| Net repayments under line-of-credit agreements                                   |   |                                    | (1,500 | ) |   |   | (5,800 | ) |
| Payments of long-term debt                                                       |   |                                    | (996   | ) |   |   | (666 | ) |
| Proceeds from the exercise of stock options                                      |   |                                    | 546    |   |   |   | 300 |   |
| Purchase of treasury stock                                                       |   |                                    | (323   | ) |   | ─ |   |
| Net cash used in financing activities                                            |   |                                    | (2,273 | ) |   |   | (6,166 | ) |
| Effect of exchange rate changes on cash and cash equivalents                     |   |                                    | (254   | ) |   |   | 246 |   |
| Net increase in cash and cash equivalents                                        |   |                                    | 181    |   |   |   | (1,368 | ) |
| Cash and cash equivalents at beginning of period                                 |   |                                    | 3,907  |   |   |   | 6,227 |   |
| Cash and cash equivalents at end of period                                       |   | $                                       | 4,088  |   |   | $ | 4,859 |   |
| Supplemental disclosures of cash flow information:                               |   |                                    |   |   |   |   |   |   |
| Cash paid during the period for:                                                 |   |                                    |   |   |   |   |   |   |
| Interest                                                                         |   | $                                       | 387    |   |   | $ | 443 |   |
| Income taxes, net of refunds                                                     |   |                                    | 714    |   |   |   | 449 |   |
|  See notes to unaudited interim consolidated financial statements           |   |                                    |   |   |   |   |   |   |

----

|   | 1. | The accompanying unaudited interim consolidated financial statements have been prepared by PAR Technology Corporation (the “Company” or “PAR”) in accordance with U.S. generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q and Regulation S-X pertaining to interim financial statements.  Accordingly, these interim financial statements do not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of the Company, such unaudited statements include all adjustments (which comprise only normal recurring accruals) necessary for a fair presentation of the results for such periods.  The results of operations for the three and nine months ended September 30, 2010 are not necessarily indicative of the results of operations to be expected for any future period.  The consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2009 included in the Company’s December 31, 2009 Annual Report to the Securities and Exchange Commission on Form 10-K. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                      |   | (in thousands) |   |
|---------------------------|--------|----------------|--------|
|                      |   | September 30,  |   |   | December 31, |   |
|                      |   | 2010           |   |   | 2009 |   |
| Government segment:       |   |           |   |   |   |   |
| Billed                    |   | $              | 10,380 |   |   | $ | 13,898 |   |
| Advanced billings         |   |           | (1,682 | ) |   |   | (572 | ) |
|                      |   |           | 8,698  |   |   |   | 13,326 |   |
| Hospitality segment:      |   |           |   |   |   |   |   |   |
| Accounts receivable - net |   |           | 32,517 |   |   |   | 31,730 |   |
| Other                     |   |           | 1,736  |   |   |   | 1,051 |   |
|                      |   | $              | 42,951 |   |   | $ | 46,107 |   |

|   | 3. | Inventories are primarily used in the manufacture and service of Hospitality products.  The components of inventory, net of related reserves, consist of the following: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      | (in thousands) |   |
|-----------------------------------------------------------|----------------|--------|
|                                                      | September 30,  |   | December 31, |   |
|                                                      | 2010           |   | 2009 |   |
|        Finished Goods  |           | $      | 9,669 |   |   | $ | 8,314 |   |
|        Work in process |           |   | 1,482 |   |   |   | 1,462 |   |
|        Component parts |           |   | 13,698 |   |   |   | 7,029 |   |
|        Service parts   |           |   | 16,203 |   |   |   | 16,062 |   |
|                                                      |           | $      | 41,052 |   |   | $ | 32,867 |   |

|   | 4. | The Company applies the fair value recognition provisions of ASC Topic 718 Stock-Based Compensation.  Total stock-based compensation expense included within operating expenses for the three and nine months ended September 30, 2010 was $199,000 and $212,000, respectively.  These amounts were recorded net of benefits of $211,000 for the nine months ended September 30, 2010, as the result of forfeitures of unvested stock options prior to the completion of the requisite service period.  Total stock-based compensation expense included in operating expenses for the three and nine months ended September 30, 2009 was $135,000 and $505,000, respectively.  At September 30, 2010, the unrecognized compensation expense related to non-vested equity awards was $654,000 (net of estimated forfeitures) which is expected to be recognized as compensation expense in fiscal years 2010 through 2015. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Earnings per share is calculated in accordance with ASC Topic 260, which specifies the computation, presentation and disclosure requirements for earnings per share (EPS).  It requires the presentation of basic and diluted EPS.  Basic EPS excludes all dilution and is based upon the weighted average number of common shares outstanding during the period.  Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.  At September 30, 2010, there were 392,000 anti-dilutive stock options outstanding. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                         |   | For the three monthsended September 30, |   |
|--------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                         |   | 2010                                    |   |   | 2009 |   |
| Net income (loss)                                            |   | $                                       | 538    |   |   | $ | (778 | ) |
|                                                         |   |                                    |   |   |   |   |   |   |
| Basic:                                                       |   |                                    |   |   |   |   |   |   |
| Shares outstanding at beginning of period                    |   |                                    | 14,838 |   |   |   | 14,535 |   |
| Weighted average shares issued during the period, net        |   |                                    | 41     |   |   |   | 9 |   |
| Weighted average common shares, basic                        |   |                                    | 14,879 |   |   |   | 14,544 |   |
| Earnings (loss) per common share, basic                      |   | $                                       | .04    |   |   | $ | (.05 | ) |
|                                                         |   |                                    |   |   |   |   |   |   |
| Diluted:                                                     |   |                                    |   |   |   |   |   |   |
| Weighted average common shares, basic                        |   |                                    | 14,879 |   |   |   | 14,544 |   |
| Weighted average shares issued during the period, net        |   |                                    | 65     |   |   | ─ |   |
| Dilutive impact of stock options and restricted stock awards |   |                                    | 104    |   |   | ─ |   |
| Weighted average common shares, diluted                      |   |                                    | 15,048 |   |   |   | 14,544 |   |
| Earnings (loss) per common share, diluted                    |   | $                                       | .04    |   |   | $ | (.05 | ) |

|                                                         |   | For the nine monthsended September 30, |   |
|--------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                         |   | 2010                                   |   |   | 2009 |   |
| Net income (loss)                                            |   | $                                      | 1,969  |   |   | $ | (293 | ) |
|                                                         |   |                                   |   |   |   |   |   |   |
| Basic:                                                       |   |                                   |   |   |   |   |   |   |
| Shares outstanding at beginning of period                    |   |                                   | 14,677 |   |   |   | 14,471 |   |
| Weighted average shares issued during the period, net        |   |                                   | 117    |   |   |   | 35 |   |
| Weighted average common shares, basic                        |   |                                   | 14,794 |   |   |   | 14,506 |   |
| Earnings (loss) per common share, basic                      |   | $                                      | .13    |   |   | $ | (.02 | ) |
|                                                         |   |                                   |   |   |   |   |   |   |
| Diluted:                                                     |   |                                   |   |   |   |   |   |   |
| Weighted average common shares, basic                        |   |                                   | 14,794 |   |   |   | 14,506 |   |
| Weighted average shares issued during the period, net        |   |                                   | 120    |   |   | ─ |   |
| Dilutive impact of stock options and restricted stock awards |   |                                   | 95     |   |   | ─ |   |
| Weighted average common shares, diluted                      |   |                                   | 15,009 |   |   |   | 14,506 |   |
| Earnings (loss) per common share, diluted                    |   | $                                      | .13    |   |   | $ | (.02 | ) |

----

|   | 6. | The Company utilizes the fair value provisions of ASC Topic 820 Fair Value Measurements and Disclosures.  ASC Topic 820 describes a fair value hierarchy based upon three levels of input, which are: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | The Company’s reportable segments are strategic business units that have separate management teams and infrastructures that offer different products and services. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | For the three months |   |   | For the nine months |   |
|--------------------------------|--------|----------------------|--------|--------|---------------------|--------|
|                           |   | Ended September 30,  |   |   | Ended September 30, |   |
|                           |   | 2010                 |   |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Net revenues:                  |   |                 |   |   |                |   |   |   |   |   |   |   |
| Hospitality                    |   | $                    | 44,174 |   |                | $      | 31,305 |   |   | $ | 122,115 |   |   | $ | 103,695 |   |
| Government                     |   |                 | 16,053 |   |                |   | 17,340 |   |   |   | 49,950 |   |   |   | 55,376 |   |
| Other                          |   |                 | 944    |   |                |   | 1,269 |   |   |   | 3,439 |   |   |   | 5,770 |   |
| Total                          |   | $                    | 61,171 |   |                | $      | 49,914 |   |   | $ | 175,504 |   |   | $ | 164,841 |   |
|                           |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):       |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Hospitality                    |   | $                    | 1,335  |   |                | $      | (2,004 | ) |   | $ | 2,223 |   |   | $ | (2,980 | ) |
| Government                     |   |                 | 894    |   |                |   | 972 |   |   |   | 2,716 |   |   |   | 2,848 |   |
| Other                          |   |                 | (1,211 | )      |                |   | (284 | ) |   |   | (2,297 | ) |   |   | (466 | ) |
|                           |   |                 | 1,018  |   |                |   | (1,316 | ) |   |   | 2,642 |   |   |   | (598 | ) |
| Other income, net              |   |                 | 97     |   |                |   | 12 |   |   |   | 516 |   |   |   | 274 |   |
| Interest expense               |   |                 | (157   | )      |                |   | (106 | ) |   |   | (299 | ) |   |   | (328 | ) |
| Income (loss) before provision |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| for income taxes               |   | $                    | 958    |   |                | $      | (1,410 | ) |   | $ | 2,859 |   |   | $ | (652 | ) |
|                           |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization: |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Hospitality                    |   | $                    | 652    |   |                | $      | 753 |   |   | $ | 2,108 |   |   | $ | 2,592 |   |
| Government                     |   |                 | 20     |   |                |   | 17 |   |   |   | 61 |   |   |   | 58 |   |
| Other                          |   |                 | 128    |   |                |   | 103 |   |   |   | 327 |   |   |   | 296 |   |
| Total                          |   | $                    | 800    |   |                | $      | 873 |   |   | $ | 2,496 |   |   | $ | 2,946 |   |
|                           |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures:          |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Hospitality                    |   | $                    | 1,146  |   |                | $      | 256 |   |   | $ | 3,330 |   |   | $ | 765 |   |
| Government                     |   | ─              |   |   | ─             |   |   |   | 44 |   |   |   | 31 |   |
| Other                          |   |                 | 38     |   |                |   | 20 |   |   |   | 145 |   |   |   | 249 |   |
| Total                          |   | $                    | 1,184  |   |                | $      | 276 |   |   | $ | 3,519 |   |   | $ | 1,045 |   |
|                           |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Revenues by geographic area:   |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| United States                  |   | $                    | 54,403 |   |                | $      | 44,690 |   |   | $ | 157,380 |   |   | $ | 148,302 |   |
| Other Countries                |   |                 | 6,768  |   |                |   | 5,224 |   |   |   | 18,124 |   |   |   | 16,539 |   |
| Total                          |   | $                    | 61,171 |   |                | $      | 49,914 |   |   |   | 175,504 |   |   |   | 164,841 |   |

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|                 | (in thousands) |   |
|----------------------|----------------|--------|
|                 | September 30,  |   | December 31, |   |
|                 | 2010           |   | 2009 |   |
| Identifiable assets: |           |   |   |   |   |   |
| Hospitality          |           | $      | 119,117 |   |   | $ | 109,085 |   |
| Government           |           |   | 10,548 |   |   |   | 15,097 |   |
| Other                |           |   | 13,670 |   |   |   | 11,921 |   |
| Total                |           | $      | 143,335 |   |   | $ | 136,103 |   |

|            | (in thousands) |   |
|-----------------|----------------|--------|
|            | September 30,  |   | December 31, |   |
|            | 2010           |   | 2009 |   |
| United States   |           | $      | 135,370 |   |   | $ | 128,665 |   |
| Other Countries |           |   | 7,965 |   |   |   | 7,438 |   |
| Total           |           | $      | 143,335 |   |   | $ | 136,103 |   |

|        | (in thousands) |   |
|-------------|----------------|--------|
|        | September 30,  |   | December 31, |   |
|        | 2010           |   | 2009 |   |
| Hospitality |           | $      | 26,026 |   |   | $ | 25,899 |   |
| Government  |           |   | 736 |   |   |   | 736 |   |
| Total       |           | $      | 26,762 |   |   | $ | 26,635 |   |

|                         |   | For the three monthsended September 30, |   |   | For the nine months ended September 30, |   |
|------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|
|                         |   | 2010                                    |   |   | 2009                                    |   |   | 2010 |   |   | 2009 |   |
| Hospitality segment:         |   |                                    |   |   |                                    |   |   |   |   |   |   |   |
| McDonald’s Corporation |   |                                    | 38     | %      |                                    |   | 22 | % |   |   | 34 | % |   |   | 25 | % |
| Yum! Brands, Inc.            |   |                                    | 10     | %      |                                    |   | 14 | % |   |   | 10 | % |   |   | 12 | % |
| Government segment:          |   |                                    |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Department of Defense   |   |                                    | 26     | %      |                                    |   | 36 | % |   |   | 28 | % |   |   | 34 | % |
| All Others                   |   |                                    | 26     | %      |                                    |   | 28 | % |   |   | 28 | % |   |   | 29 | % |
|                         |   |                                    | 100    | %      |                                    |   | 100 | % |   |   | 100 | % |   |   | 100 | % |

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|   | (a) | Evaluation of Disclosure Controls and Procedures. |
|--------|-----|---------------------------------------------------|

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|   |  (b) | Changes in Internal Control over Financial Reporting. |
|--------|-----------|-------------------------------------------------------|

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| Exhibit No.                | Description of Instrument                                                                                                                                                                                                                                                |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  10(iii)(A) 31.1 |  Employment Agreement Between PAR Technology Corporation and Gregory T. Cortese Certification of Chairman of the Board and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                       |
|  31.2                 |  Certification of Vice President, Chief Financial Officer, Treasurer, and Chief Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                            |
|  32.1                 |  Certification of Chairman of the Board and Chief Executive Officer and Vice President, Chief Financial Officer, Treasurer, and Chief Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |

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|                               |   | PAR TECHNOLOGY CORPORATION                                                       |
|------------------------------------|--------|----------------------------------------------------------------------------------|
|                               |   | (Registrant)                                                                     |
|                               |   |                                                                             |
|                               |   |                                                                             |
| Date:  November 10, 2010 |   |                                                                             |
|                               |   |                                                                             |
|                               |   |                                                                             |
|                               |   |                                                                             |
|                               |   |                                                                             |
|                               |   |                                                                             |
|                               |   | /s/RONALD J. CASCIANO                                                            |
|                               |   | Ronald J. Casciano                                                               |
|                               |   | Vice President, Chief Financial Officer, Treasurer, and Chief Accounting Officer |

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|   Exhibit                    |                                                                                                                                                                                                                                                                          |  Sequential Page Number   |
|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|   10(iii)(A)  31.1 |   Employment Agreement Between PAR Technology Corporation and Gregory T. Cortese Certification of Chairman of the Board and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                 |   E-1  E-2 |
|  31.2                             |  Certification of Vice President, Chief Financial Officer, Treasurer, and Chief Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                            |   E-3                |
|  32.1                             |  Certification of Chairman of the Board and Chief Executive Officer and Vice President, Chief Financial Officer, Treasurer, and Chief Accounting Officer Pursuant to 18 U.S.C. Section 1350, as  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |  E-4                      |

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