On March 5, 2008, the Registrant received a fully executed agreement between it and The Private Bank of The Peninsula ("Bank") to amend the Loan and Security Agreement dated February 6, 2008 by and between the Registrant and the Bank (the "Amendment"). The effective date of the Amendment is February 24, 2009. Pursuant to the Amendment, the Bank renewed the Registrant's asset based line of credit (the "Line") and modified the terms of the Line to include an interest rate that is floating and is calculated at Wall Street Journal prime plus five percent (5%) on the cash borrowed provided that the minimum rate will be eight and one half percent (8.5%) and minimum interest will be $7,000 per three month period. Interest on outstanding borrowings is payable monthly. In addition, the Registrant is required to pay an amendment fee of $10,000 and, upon each advance, a fee equal to one quarter of one percent (0.25%) of the advance and will be subject to covenants as to minimum income and cash as set forth more fully in the Amendment.

Outstanding advances under the Line are secured by a first lien position on all of Registrant's accounts receivable, contract rights, chattel paper, documents, and payment and by a second lien on its inventory, intellectual property, and equipment.

(c) Exhibits

Exhibit number      Description
------------------- ---------------------------------------------------------------
10.1                First Amendment to Loan and Security Agreement dated as of
                    February 24, 2009 by and between The Private Bank of the
                    Peninsula and the Registrant