Bitstream Inc. AUDIT COMMITTEE CHARTER GENERAL This charter governs the operations of the Audit Committee (the ‘Committee”). The Committee shall review and reassess the charter at least annually and submit any proposed amendments, thereto to the Board of Directors for approval. The purpose of the Audit Committee is to assist the Board of Directors in fulfilling their oversight responsibility to the shareholders, potential shareholders, the investment community, and others relating to the Company’s financial statements and the financial reporting process. The Committee reviews the Company's accounting practices, internal accounting controls and financial results and oversees the engagement of the Company's independent auditors. The Committee also oversees management’s performance of its responsibility for the integrity of the Company’s accounting and financial reporting and its systems of internal controls, the performance and qualifications of the independent auditor (including the independent auditor’s independence), and the Company’s compliance with legal and regulatory requirements. The Audit Committee shall be appointed by the Board of Directors, upon the recommendation of the Nominating and Corporate Governance Committee, unless otherwise determined by the Board of Directors and disclosed in the Company’s annual proxy statement. The Committee shall comprise at least three directors, each of who are “independent” within the meaning ...