Subsequent events

12 Months Ended

Dec. 31, 2013

Subsequent events

Subsequent events

18. Subsequent events

Appointment of Carl Williams as Chief Executive Officer

        In February 2014, Carl Williams, a member of the Board of Directors and the Company President since November of 2013, has been appointed by the Board to also serve as Chief Executive Officer. Carl Williams succeeds Philip Beck, who will continue as Chairman of the Board.

Philip Beck separation agreement

        In February 2014, the Company entered into a separation agreement with Philip Beck. The key financial terms of the agreement are as follows:

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  The Company will pay the aggregate gross amount of $370,000, which equals twelve months base salary;

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  The Company will be returned $120,000 in advanced payments of a 2013 bonus for which the achievement of specified corporate objectives were not attained; and

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  The 915,000 restricted shares of common stock granted pursuant to that certain Long-Term Incentive Restricted Stock Agreement dated July 26, 2011 shall remain in full force and effect without modification or amendment. In accordance with the incentive agreement the Company exercised its repurchase option of 35% or 320,250 of the restricted shares at the price of $1.00 in the aggregate.

Restricted stock cancellation

        Effective upon the filing of Form 10-K, 416,239 shares of restricted stock were cancelled due to the applicable performance targets not being fulfilled.