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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&lt;b&gt;Note

      7 - Commitments and Contingencies&lt;/b&gt;&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;In

      July 2007, the Company entered into a lease (the &amp;#8220;New

      York Lease&amp;#8221;) for corporate office space located at 114

      West 41st Street, New York, NY 10036 (the &amp;#8220;New York

      Office&amp;#8221;). As part of the New York Lease, the landlord

      agreed to commence and substantially complete major capital

      improvements to the common areas of the New York Office by

      June 2008. After June 2008, if such capital improvements have

      not been substantially completed, the New York Lease

      provides, among other things, for a reduction in rent by one

      half for each day beyond June 30, 2008 that the capital

      improvements remain incomplete and are not being diligently

      prosecuted toward completion.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; MARGIN: 0pt" id="PARA1109"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;On

      February 16, 2011, the Company filed a complaint in the

      Supreme Court, New York County, with respect to the New York

      Lease. The Company asserted claims against the Landlord of

      the New York Office and the receiver of such property

      appointed in connection with a foreclosure action commenced

      against Landlord by its lender. The complaint sought (i) a

      judgment declaring (a) that the Company is not in default

      under the New York Lease and (b) that the rent previously

      paid by the Company represents the full amount of rent; and

      (ii) for rescission of the New York Lease as of June 30, 2008

      by reason of default by the Landlord with respect to a

      material provision under the New York Lease requiring prompt

      completion of major capital improvements of the New York

      Office&amp;#8217;s common areas. The Supreme Court action was

      dismissed on December 16, 2011 without prejudice to renew the

      action if complete relief is not afforded in the Civil Court

      of the City of New York (&amp;#8220;Court&amp;#8221;) action

      described below.&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;On

      February 23, 2011, the Supreme Court appointed Receiver of

      the subject property commenced a non-payment proceeding in

      the Court against the Company. The Receiver sought payment of

      allegedly past due and unpaid rent and additional rent under

      the New York Lease, totaling $7.1 million. On July 30, 2012,

      the Court commenced a trial on the matter. The trial was

      concluded on December 19, 2012 and the respective parties

      filed post trial briefs and reply briefs with the Court on

      January 23 and February 5, 2013, respectively. On June 10,

      2013, the Court ruled that the Company was entitled to rent

      abatement for all but approximately $0.2 million of the

      plaintiff&amp;#8217;s claim. Additionally, the Court awarded the

      Company legal fees and expenses for their defense in this

      litigation. The Receiver has filed a Notice of Appeal of the

      Decision, Order and Judgment of the trial court but has not

      yet perfected that appeal (i.e. filed the record on appeal

      and appellate brief).&amp;#160; The Notice of Appeal

      automatically stays any hearing on the amount of legal fees

      and expenses due and owing to the Company until the appeal

      either has been decided in the Company&amp;#8217;s favor on that

      issue or the appeal has been dismissed for failure to perfect

      within the nine month jurisdictional time limit.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; MARGIN: 0pt" id="PARA1113"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      Company previously had accrued approximately $6.3 million for

      disputed unpaid rent. The Company believes that the rent

      abatement judgment will be upheld on appeal and reversed

      approximately $6.1 million of the accrual in the quarter

      ended June 29, 2013. The related legal expenses were not

      reversed due to the uncertainty of the separate

      hearing.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; MARGIN: 0pt"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      Company is from time to time involved in other litigation

      incidental to the conduct of its business, none of which is

      expected to be material to its business, financial condition

      or operations.&amp;#160;&lt;/font&gt;

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