LAWE: Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
The disclosure by Law Enforcement Associates Corporation (the "Company") contained in Item 8.01 of its Form 8-K filed with the Commission on August 3, 2009, is hereby incorporated herein by reference. Further, the disclosure contained in Item 8.01 of this Form 8-K is hereby incorporated herein by reference.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Martin L. Perry, Vice President of Sales, voluntarily quit as an employee of the Company on September 23, 2009. On September 24, 2009, the Board removed Mr. Perry as an officer of the Company because he was no longer an employee. He remains a director.
Mr. Perry's sales management duties have been assumed by Jay W. Becker, who is Director of Sales. Mr. Becker, a graduate of Ohio State University with over 20 years of sales experience, previously served in sales for the Company, and rejoined the Company in early September, 2009.
Item 8.01. Other Events
(a) Company's Annual Meeting.
The Company will hold its Annual Meeting of stockholders on Thursday, December 3, 2009, at 10:00 a.m. Eastern Time at its headquarters located at 2609 Discovery Drive, Suite 125, Raleigh, North Carolina. The record date to determine stockholders of record for this Annual Meeting is October 29, 2009.
(b) Legal Proceedings.
On September 23, 2009 a complaint was filed against the Company in Wake County, North Carolina Superior Court on behalf of Barbara Wortley. The suit alleges a breach of an Asset Purchase Agreement dated September 28, 2007 by and among Advanced Vehicle Systems, LLC, a Florida limited liability company, Ms. Wortley, and the Company. The suit seeks to enforce a Demand Option under the Purchase Agreement for the Company to repurchase from Ms. Wortley up to 1,200,000 shares of the Company's stock at a price of $1.25 per share. In her complaint, Ms. Wortley seeks $1,500,000, interest at 8% from August 1, 2009 and attorneys' fees of not less than $227,663.02. The Company received service of the complaint on September 24, 2009.
As previously disclosed, on June 26, 2009 Ms. Wortley gave notice to the Company of her demand under the Demand Option, prior to the exercise date of August 1, 2009. Since such Notice, the Company has been negotiating in good faith with Ms. Wortley, and put forward settlement proposals which were rejected. The Company is investigating the complaint, and expects to vigorously defend the law suit.