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Friday, August 15, 2014 5:51:20 PM
Subsequent to the close of the December 31, 2013 quarter, on February 22, 2014, the Board of Directors of the Company notified the former Chief Executive Officer, Fred Zolla, that he was in violation of various provisions of his Separation Agreement and that the Company would no longer make payments under the terms of the Settlement Agreement. The former Chief Executive Officer disputes this claim and has filed an arbitration action with the American Arbitration Association (AAA), as required by the Separation Agreement that was in place at the time of Mr. Zolla’s separation from the company. The Company believes that it has acted in a manner in accordance with the terms of the Agreement and will rigorously make assertions to that effect during the AAA process. We do not believe that any costs or losses associated with this action will be material to the company. A hearing is expected to proceed in December 2014.
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