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Related Party Transactions
6 Months Ended
Jun. 30, 2011
Related Party Transactions [Abstract]  
Related Party Transactions
17. Related Party Transactions
RFL has an investment of $15,000 in RFL Communications PLC, (“RFL Communications”), representing 4.5% of the outstanding equity thereof. RFL Communications is a distributor of teleprotection and communication equipment located in the United Kingdom. It is authorized to sell RFL products in accordance with an international sales agreement. Sales to RFL Communications for each of the three month periods ended June 30, 2011 and June 30, 2010 were $109,000 and $147,000, respectively. Sales to RFL Communications for each of the six month periods ended June 30, 2011 and June 30, 2010 were $393,000 and $329,000, respectively. Accounts receivable due from RFL Communications at June 30, 2011 and December 31, 2010 were $65,000 and $100,000, respectively.
The Company was a party to a Management Agreement (the “Agreement”) dated April 1, 2002 with Steel Partners Ltd. (“Steel Partners”). Steel Partners is a management company controlled by Warren G. Lichtenstein. Glen M. Kassan and John H. McNamara are employed by Steel Partners. Messrs. Lichtenstein and Kassan are directors of the Company. Mr. McNamara was a director of the Company from May 14, 2008 until June 8, 2011. As previously reported, Mr. Lichtenstein was elected to the Board on March 30, 2010 to fill the vacancy created by the resignation of James R. Henderson. On May 18, 2010, the parties terminated the Agreement. Under the Agreement, Steel Partners provided certain management services to the Company in consideration for an annual fee of $475,000, paid monthly. The Agreement was terminated, effective January 31, 2010, for a one-time payment of $150,000. Fees of approximately $150,000 and $190,000 were expensed for the three and six month periods ended June 30, 2010.