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| Delaware                                                       |                                                        | 75-2440201                           |
|----------------------------------------------------------------|-------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |                                                        | (I.R.S. Employer Identification No.) |
|                                                           |                                                        |                                 |
| 6500 Greenville Avenue Suite 330 Dallas,  TX         |                                                        | 75206                                |
| (Address of Principal Executive Offices)                       |                                                        | (Zip Code)                           |
|                                                           | (214) 265-9580                                              |                                 |
|                                                           | (Registrant’s Telephone Number, including area code.) |                                 |

| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer o(Do not check if a smaller reporting company) |   | Smaller reporting company ý |
|------------------------------------------|--------|-------------------------------|--------|--------------------------------------------------------------------------------|--------|-------------------------------------------------|

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Table of Contents 

TABLE OF CONTENTS

| Part I.    | Financial Information                                                                                                     |    |
|------------|---------------------------------------------------------------------------------------------------------------------------|---------|
|       |                                                                                                                      |    |
| Item 1.    | Financial Statements                                                                                                      | 2       |
|       |                                                                                                                      |    |
|       | Balance Sheets-December 31, 2010 and March 31, 2010.                                                                      | 2  |
|       |                                                                                                                      |    |
|       | Statements of Operations- Three Months Ended December 31, 2010 and 2009 and Nine Months Ended December 31, 2010 and 2009. | 4  |
|       |                                                                                                                      |    |
|       | Statements of Cash Flows-Nine Months Ended December 31, 2010 and 2009.                                                    | 5  |
|       |                                                                                                                      |    |
|       | Notes to Financial Statements - December 31, 2010.                                                                        | 6  |
|       |                                                                                                                      |    |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations                               | 13      |
|       |                                                                                                                      |    |
| Item 3.    | Quantitative and Qualitative Disclosures About Market Risk                                                                | 17      |
|       |                                                                                                                      |    |
| Item 4T.   | Controls and Procedures                                                                                                   | 17      |
|       |                                                                                                                      |    |
| Part II.   | Other Information                                                                                                         |    |
|       |                                                                                                                      |    |
| Item 1.    | Legal Proceedings                                                                                                         | 18      |
|       |                                                                                                                      |    |
| Item 1A.   | Risk Factors                                                                                                              | 18      |
|       |                                                                                                                      |    |
| Item 2.    | Unregistered Sales of Securities and Use of Proceeds                                                                      | 18      |
|       |                                                                                                                      |    |
| Item 3.    | Defaults upon Senior Securities                                                                                           | 18      |
|       |                                                                                                                      |    |
| Item 4.    | Removed and Reserved                                                                                                      | 18      |
|       |                                                                                                                      |    |
| Item 5.    | Other Information                                                                                                         | 18      |
|       |                                                                                                                      |    |
| Item 6.    | Exhibits and Reports on Form 8-K                                                                                          | 18      |
|       |                                                                                                                      |    |
| Signatures |                                                                                                                      | 19      |

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Table of Contents 

Item1. Financial 

CONDEN

|                                                       |   | December 31, |    |   | March 31, |   |
|------------------------------------------------------------|--------|--------------|---------|--------|-----------|--------|
|                                                       |   | 2010         |    |   | 2010      |   |
|                                                       |   | (unaudited)  |    |   | (audited) |   |
| Assets                                                     |   |         |    |   |      |   |
|                                                       |   |         |    |   |      |   |
| Current assets:                                            |   |         |    |   |      |   |
| Cash and cash equivalents                                  |   | $            | 625,669 |   |      | $      | 600,647 |   |
| Accounts receivable, net of allowance for doubtful         |   |         |    |   |      |   |   |   |
| accounts                                                   |   |         | 7,720   |   |      |   | 4,986 |   |
| Inventory                                                  |   |         | 2,616   |   |      |   | 12,393 |   |
| Net current assets of discontinued operations              |   |         | -       |   |      |   | 596,286 |   |
|                                                       |   |         |    |   |      |   |   |   |
| Total current assets                                       |   | $            | 636,005 |   |      | $      | 1,214,312 |   |
|                                                       |   |         |    |   |      |   |   |   |
| Property and equipment:                                    |   |         |    |   |      |   |   |   |
| Computer equipment                                         |   | $            | 72,715  |   |      | $      | 74,664 |   |
| Furniture and fixtures                                     |   |         | 22,317  |   |      |   | 22,317 |   |
| Office equipment                                           |   |         | 8,567   |   |      |   | 17,506 |   |
|                                                       |   |         |    |   |      |   |   |   |
|                                                       |   | $            | 103,599 |   |      | $      | 114,487 |   |
| Less accumulated depreciation                              |   |         | 83,577  |   |      |   | 87,008 |   |
|                                                       |   |         |    |   |      |   |   |   |
| Net property and equipment                                 |   | $            | 20,022  |   |      | $      | 27,479 |   |
|                                                       |   |         |    |   |      |   |   |   |
| Other assets:                                              |   |         |    |   |      |   |   |   |
| Capitalized software development costs, net of accumulated |   |         |    |   |      |   |   |   |
| amortization                                               |   | $            | 125     |   |      | $      | 688 |   |
| Deposits                                                   |   |         | 4,485   |   |      |   | 4,485 |   |
| Trademarks and patents, net of accumulated                 |   |         |    |   |      |   |   |   |
| amortization                                               |   |         | 21,260  |   |      |   | 25,574 |   |
| Net noncurrent assets of discontinued operations           |   |         | -       |   |      |   | 138,613 |   |
|                                                       |   |         |    |   |      |   |   |   |
| Total other assets                                         |   | $            | 25,870  |   |      | $      | 169,360 |   |
|                                                       |   |         |    |   |      |   |   |   |
| Total assets                                               |   | $            | 681,897 |   |      | $      | 1,411,151 |   |

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Table of Contents 

|                                                 |   | December 31, |        |   | March 31, |   |
|------------------------------------------------------|--------|--------------|-------------|--------|-----------|--------|
|                                                 |   | 2010         |        |   | 2010      |   |
|                                                 |   | (unaudited)  |        |   | (audited) |   |
| Liabilities and stockholders' equity (deficit)       |   |         |        |   |      |   |
|                                                 |   |         |        |   |      |   |
| Current liabilities:                                 |   |         |        |   |      |   |
| Accounts payable                                     |   | $            | 12,472      |   |      | $      | - |   |
| Net current portion of discontinued operations       |   |         | -           |   |      |   | 1,564,172 |   |
|                                                 |   |         |        |   |      |   |   |   |
| Total current liabilities                            |   | $            | 12,472      |   |      | $      | 1,564,172 |   |
|                                                 |   |         |        |   |      |   |   |   |
|                                                 |   |         |        |   |      |   |   |   |
| Commitments and contingencies (Note F)               |   |         |        |   |      |   |   |   |
|                                                 |   |         |        |   |      |   |   |   |
|                                                 |   |         |        |   |      |   |   |   |
| Stockholders' equity (deficit):                      |   |         |        |   |      |   |   |   |
| Common stock, $.001 par value;                       |   |         |        |   |      |   |   |   |
| 100,000,000 shares authorized; 6,130,184             |   |         |        |   |      |   |   |   |
| and 6,130,184 shares issued, respectively            |   | $            | 6,130       |   |      | $      | 6,130 |   |
| Additional paid-in capital                           |   |         | 20,481,148  |   |      |   | 20,481,148 |   |
| Accumulated deficit                                  |   |         | (19,816,347 | )      |      |   | (20,638,793 | ) |
| Treasury stock - 4,500 shares at cost                |   |         | (1,506      | )      |      |   | (1,506 | ) |
|                                                 |   |         |        |   |      |   |   |   |
| Total stockholders' equity (deficit)                 |   | $            | 669,425     |   |      | $      | (153,021 | ) |
|                                                 |   |         |        |   |      |   |   |   |
| Total liabilities and stockholders' equity (deficit) |   | $            | 681,897     |   |      | $      | 1,411,151 |   |

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Table of Contents 

COND

|                                           |   | Three months |    |   | Nine months  |   |     | Three months |   |   | Nine months  |   |
|------------------------------------------------|--------|--------------|---------|--------|--------------|--------|----------|--------------|--------|--------|--------------|--------|
|                                           |   | ended        |    |   | ended        |   |     | ended        |   |   | ended        |   |
|                                           |   | December 31, |    |   | December 31, |   |     | December 31, |   |   | December 31, |   |
|                                           |   | 2010         |    |   | 2010         |   |     | 2009         |   |   | 2009         |   |
|                                           |   | (unaudited)  |    |   | (unaudited)  |   |     | (unaudited)  |   |   | (unaudited)  |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |
| Net sales                                      |   | $            | 6,167   |   |         | $      | 22,503   |         |   | $      | 15,097       |   |   | $ | 46,045 |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Cost of sales                                  |   |         | 1,123   |   |         |   | 4,534    |         |   |   | 2,647        |   |   |   | 7,914 |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Gross profit                                   |   | $            | 5,044   |   |         | $      | 17,969   |         |   | $      | 12,450       |   |   | $ | 38,131 |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| General and administrative expenses            |   | $            | 60,533  |   |         | $      | 198,659  |         |   | $      | 66,789       |   |   | $ | 234,880 |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Loss from operations                           |   | $            | (55,489 | )      |         | $      | (180,690 | )            |   | $      | (54,339      | )      |   | $ | (196,749 | ) |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Other income (expense):                        |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Gain on sale of assets                         |   | $            | 235     |   |         | $      | 395      |         |   | $      | -            |   |   | $ | - |   |
| Impairment expense                             |   |         | -       |   |         |   | (7,848   | )            |   |   | -            |   |   |   | - |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Total other expense                            |   | $            | 235     |   |         | $      | (7,453   | )            |   | $      | -            |   |   | $ | - |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Loss from continuing operations                |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
|    before income taxes          |   | $            | (55,254 | )      |         | $      | (188,143 | )            |   | $      | (54,339      | )      |   | $ | (196,749 | ) |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Provision for income taxes                     |   |         | -       |   |         |   | -        |         |   |   | -            |   |   |   | - |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Loss from continuing operations                |   | $            | (55,254 | )      |         | $      | (188,143 | )            |   | $      | (54,339      | )      |   | $ | (196,749 | ) |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Income from discontinued operations            |   | $            | -       |   |         | $      | 913,260  |         |   | $      | 235,210      |   |   | $ | 652,003 |   |
| Gain on sale of discontinued operations        |   |         | -       |   |         |   | 97,329   |         |   |   | -            |   |   |   | - |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Net income                                     |   | $            | (55,254 | )      |         | $      | 822,446  |         |   | $      | 180,871      |   |   | $ | 455,254 |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Per share amounts:                             |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Net loss from continuing operations            |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
|      per common share |   | $            | (0.009  | )      |         | $      | (0.031   | )            |   | $      | (0.009       | )      |   | $ | (0.032 | ) |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
| Net income from discontinued operations        |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
|      per common share |   | $            | -       |   |         | $      | 0.165    |         |   | $      | 0.038        |   |   | $ | 0.106 |   |
|                                           |   |         |    |   |         |   |     |         |   |   |         |   |   |   |   |   |
|   Net income per common share        |   | $            | (0.009  | )      |         | $      | 0.134    |         |   | $      | 0.030        |   |   | $ | 0.074 |   |

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Table of Contents 

CONDENSE

|                                                        |   | 2010        |       |   | 2009        |   |
|-------------------------------------------------------------|--------|-------------|------------|--------|-------------|--------|
|                                                        |   | (unaudited) |       |   | (unaudited) |   |
|                                                        |   |        |       |   |        |   |
| Cash flows from operating activities:                       |   |        |       |   |        |   |
| Net income                                                  |   | $           | 822,446    |   |        | $      | 455,254 |   |
| Adjustments to reconcile net loss to net cash provided      |   |        |       |   |        |   |   |   |
|     (used) by operating activities:     |   |        |       |   |        |   |   |   |
| Income from discontinued operations, net of income taxes    |   | $           | (1,010,589 | )      |        | $      | (652,003 | ) |
| Depreciation and amortization                               |   |        | 12,334     |   |        |   | 13,827 |   |
| Gain on sale of assets                                      |   |        | (395       | )      |        |   | - |   |
| Changes in operating assets and liabilities:                |   |        |       |   |        |   |   |   |
| (Increase) decrease in accounts receivable                  |   |        | (2,734     | )      |        |   | 13,103 |   |
| (Increase) decrease in inventory                            |   |        | 9,777      |   |        |   | - |   |
| (Increase) decrease in deposits                             |   |        | -          |   |        |   | 25,000 |   |
| Increase (decrease) in accounts payable                     |   |        | 12,472     |   |        |   | - |   |
|        Total adjustments |   | $           | (979,135   | )      |        | $      | (600,073 | ) |
|                                                        |   |        |       |   |        |   |   |   |
| Net cash used by continuing operating activities            |   | $           | (156,689   | )      |        | $      | (144,819 | ) |
| Net cash provided by discontinued operating activities      |   |        | 1,067,816  |   |        |   | 973,692 |   |
| Net cash provided by operating activities                   |   | $           | 911,127    |   |        | $      | 828,873 |   |
|                                                        |   |        |       |   |        |   |   |   |
| Cash flows from investing activities:                       |   |        |       |   |        |   |   |   |
| Net cash provided by continuing investing activities        |   |        |       |   |        |   |   |   |
| Proceeds from sale of assets                                |   | $           | 395        |   |        | $      | - |   |
| Net cash provided by discontinued investing activities      |   |        |       |   |        |   |   |   |
| Proceeds from sale of assets                                |   |        | 225,000    |   |        |   | 908 |   |
| Capital Expenditures                                        |   |        | -          |   |        |   | (13,432 | ) |
| Net cash provided by investing activities                   |   | $           | 225,395    |   |        | $      | (12,524 | ) |
|                                                        |   |        |       |   |        |   |   |   |
| Cash flows from financing activities:                       |   |        |       |   |        |   |   |   |
| Net cash used by continuing financing activities            |   | $           | -          |   |        | $      | - |   |
| Net cash used by discontinued financing activities          |   |        |       |   |        |   |   |   |
| Repayment of note payable                                   |   |        | (1,111,500 | )      |        |   | (771,250 | ) |
|                                                        |   |        |       |   |        |   |   |   |
| Net cash used by financing activities                       |   | $           | (1,111,500 | )      |        | $      | (771,250 | ) |
|                                                        |   |        |       |   |        |   |   |   |
| Net increase (decrease) in cash and cash equivalents        |   | $           | 25,022     |   |        | $      | 45,099 |   |
|                                                        |   |        |       |   |        |   |   |   |
| Cash and cash equivalents:                                  |   |        |       |   |        |   |   |   |
| Beginning of period                                         |   |        | 600,647    |   |        |   | 466,187 |   |
|                                                        |   |        |       |   |        |   |   |   |
| End of period                                               |   | $           | 625,669    |   |        | $      | 511,286 |   |
|                                                        |   |        |       |   |        |   |   |   |
| Supplemental cash flow information:                         |   |        |       |   |        |   |   |   |
| Cash paid for interest                                      |   | $           | 58,500     |   |        | $      | 93,079 |   |

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NOTES TO CONDENSED 

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Table of Contents 

| Computer equipment   | 5 years |
|--------------------------------|---------|
| Furniture and fixtures         | 5 years |
| Office equipment     | 5 years |

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|                                                                    |   | December 31, |   |   | March 31, |   |
|-------------------------------------------------------------------------|--------|--------------|--------|--------|-----------|--------|
|                                                                    |   | 2010         |   |   | 2010      |   |
|                                                                    |   |         |   |   |      |   |
| Current assets of dscontinued operations:                               |   |         |   |   |      |   |
|   Accounts receivable, net                                    |   | $            | -      |   |      | $      | 596,286 |   |
|            Total |   | $            | -      |   |      | $      | 596,286 |   |
|                                                                    |   |         |   |   |      |   |   |   |
| Other assets of discontinued operations:                                |   |         |   |   |      |   |   |   |
|   Property, plant and equipment, net                          |   | $            | -      |   |      | $      | 87,333 |   |
|   Other assets                                                |   |         | -      |   |      |   | 51,280 |   |
|            Total |   | $            | -      |   |      | $      | 138,613 |   |
|                                                                    |   |         |   |   |      |   |   |   |
| Current liabilities of discontinued operations:                         |   |         |   |   |      |   |   |   |
|   Accounts payable                                            |   | $            | -      |   |      | $      | 344,613 |   |
|   Deferred revenue                                            |   |         | -      |   |      |   | 56,917 |   |
|   Accrued expenses                                            |   |         | -      |   |      |   | 51,142 |   |
|   Notes payable                                               |   |         | -      |   |      |   | 1,111,500 |   |
|                                                                    |   | $            | -      |   |      | $      | 1,564,172 |   |

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Table of Contents 

|                                |   | Three months |   |   | Nine months  |   |      | Three months |   |   | Nine months  |   |
|-------------------------------------|--------|--------------|--------|--------|--------------|--------|-----------|--------------|--------|--------|--------------|--------|
|                                |   | ended        |   |   | ended        |   |      | ended        |   |   | ended        |   |
|                                |   | December 31, |   |   | December 31, |   |      | December 31, |   |   | December 31, |   |
|                                |   | 2010         |   |   | 2010         |   |      | 2009         |   |   | 2009         |   |
|                                |   | (unaudited)  |   |   | (unaudited)  |   |      | (unaudited)  |   |   | (unaudited)  |   |
|                                |   |         |   |   |         |   |      |         |   |   |         |   |
| Net sales                           |   | $            | -      |   |         | $      | 2,428,255 |         |   | $      | 1,196,104    |   |   | $ | 3,321,953 |   |
| Cost of sales                       |   |         | -      |   |         |   | 1,111,539 |         |   |   | 677,667      |   |   |   | 1,776,821 |   |
|                                |   |         |   |   |         |   |      |         |   |   |         |   |   |   |   |   |
| Gross profit                        |   | $            | -      |   |         | $      | 1,316,716 |         |   | $      | 518,437      |   |   | $ | 1,545,132 |   |
|                                |   |         |   |   |         |   |      |         |   |   |         |   |   |   |   |   |
| General and administrative expenses |   | $            | -      |   |         | $      | 379,764   |         |   | $      | 261,641      |   |   | $ | 770,603 |   |
| Interest expense                    |   |         | -      |   |         |   | 23,692    |         |   |   | 21,586       |   |   |   | 122,526 |   |
| Income from discontinued operations |   | $            | -      |   |         | $      | 913,260   |         |   | $      | 235,210      |   |   | $ | 652,003 |   |

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| Exercise of stock warrants and debt conversion             |   |   | 3,880,072 |   |
|------------------------------------------------------------|--------|--------|-----------|--------|
| Exercise of future grants of stock options and stock       |   |   |      |   |
|  appreciation rights under the 2000 stock option plan |   |   | 179,133   |   |
|                                                       |   |   | 4,059,205 |   |

| Year ending |   |   |   |
|-------------|--------|--------|--------|
| March 31,   |   | Amount |   |
|        |   |   |   |
| 2011        |   | $      | 6,382  |   |
| 2012        |   |   | 25,856 |   |
| 2013        |   |   | 20,160 |   |
|        |   | $      | 52,398 |   |

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Item 2. Management’s 

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| Gross sales price                                  |   | $      | 225,000 |   |
|----------------------------------------------------|--------|--------|---------|--------|
| Less: legal fees                                   |   |   | 6,240   |   |
| Proceeds, net of expenses                          |   |   | 218,760 |   |
| Book value of assets sold                          |   |   | 121,431 |   |
| Gain on sale of assets, prior to income tax effect |   |   | 97,329  |   |
| Income tax expense                                 |   |   | -0-     |   |
| Gain on sale of assets net of income tax effect    |   | $      | 97,329  |   |

|                                |   | Three months |   |   | Nine months  |   |      | Three months |   |   | Nine months  |   |
|-------------------------------------|--------|--------------|--------|--------|--------------|--------|-----------|--------------|--------|--------|--------------|--------|
|                                |   | ended        |   |   | ended        |   |      | ended        |   |   | ended        |   |
|                                |   | December 31, |   |   | December 31, |   |      | December 31, |   |   | December 31, |   |
|                                |   | 2010         |   |   | 2010         |   |      | 2009         |   |   | 2009         |   |
|                                |   | (unaudited)  |   |   | (unaudited)  |   |      | (unaudited)  |   |   | (unaudited)  |   |
|                                |   |         |   |   |         |   |      |         |   |   |         |   |
| Net sales                           |   | $            | -      |   |         | $      | 2,428,255 |         |   | $      | 1,196,104    |   |   | $ | 3,321,953 |   |
| Cost of sales                       |   |         | -      |   |         |   | 1,111,539 |         |   |   | 677,667      |   |   |   | 1,776,821 |   |
|                                |   |         |   |   |         |   |      |         |   |   |         |   |   |   |   |   |
| Gross profit                        |   | $            | -      |   |         | $      | 1,316,716 |         |   | $      | 518,437      |   |   | $ | 1,545,132 |   |
|                                |   |         |   |   |         |   |      |         |   |   |         |   |   |   |   |   |
| General and administrative expenses |   | $            | -      |   |         | $      | 379,764   |         |   | $      | 261,641      |   |   | $ | 770,603 |   |
| Interest expense                    |   |         | -      |   |         |   | 23,692    |         |   |   | 21,586       |   |   |   | 122,526 |   |
| Income from discontinued operations |   | $            | -      |   |         | $      | 913,260   |         |   | $      | 235,210      |   |   | $ | 652,003 |   |

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Item 3. 

Quantitative 

Item 4T. Controls 

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Item 1.         

Item 1A. Risk Factors

Item 2.       

Item 3.               

Item 4.             

Item 5.                    

Item 6.                  

| 31.1  | Certification of Chief Executive Officer and Chief Financial Officer                                                   |
|------------|------------------------------------------------------------------------------------------------------------------------|
| 32.1  | Certification 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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SIGN

| February 11, 2011                    | /s/ Mary G. Merritt                       |
|-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date                                                                                                                      | Mary G. Merritt                                                                                                                                         |
|                                                                                                                                | Chairman and Chief Executive Officer                                                                                                                    |
|                                                                                                                                | (Principal Executive Officer)                                                                                                                           |

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