On July 21, 2011, we entered into a new employment agreement (the “Employment Agreement”) with David J. Frear to continue to serve as our Executive Vice President and Chief Financial Officer through July 20, 2015. The Employment Agreement provides for an annual base salary of $850,000. If Mr. Frear’s employment is terminated without cause or he terminates his employment for good reason, we are obligated to pay him a lump sum payment equal to his then annual salary and the cash value of the bonus last paid or payable to him in respect of the preceding fiscal year and to continue his health and life insurance benefits for one year. Our obligations to pay the foregoing amounts are subject to Mr. Frear’s execution of a valid release of claims against us and his compliance with certain restrictive covenants. We have also agreed to indemnify Mr. Frear for any excise taxes that may be imposed on him under Section 280G of the Internal Revenue Code.

          In connection with the execution of the Employment Agreement, we granted Mr. Frear an option to purchase 16,000,000 shares of our common stock at an exercise price of $2.18 per share (the last sale price of our common stock on the Nasdaq Global Select Market prior to the execution of the Employment Agreement) (the “Option”). The Option will generally vest in four equal installments on each of July 21, 2012, July 21, 2013, July 21, 2014 and July 21, 2015, subject to earlier acceleration or termination under certain circumstances.

          The foregoing description is qualified in its entirety by the Employment Agreement attached as Exhibit 10.1 to this Current Report on Form 8-K.