ADDENDUM TO RON FOLK'S TESTIMONY IN BABISH DEFENSE
OOPS! I just realized I forgot to scan in the last page of Ron Folk's testimony. Here is the rest of it.
5. In one of my conversations with Mr. Rhodes, while we were discussing Dr. Babish's stock sales, Mr. Rhodes said that Dr. Babish was using a "scorched earth" policy to get the Board's attention. During one of my conversations, Mr. Rhodes also told me that he had appointed a compensation committee consisting of two Board members, and that they would handle the contract discussions with Dr. Babish and he would not be directly involved. I do not recall during which conversations these comments occured.
6. In sum, I knew as early as approximately February 11, 1997, that Dr. Babish was selling stock in the company and that from the company's perspective, at least one of the reasons that Dr. Babish was selling stock was because of the ongoing contract dispute. From
my telephone conversations and letter to the company, the company knew that from my perspective it was important for the company to negotiate in good faith so as to retain Dr. Babish as an employee. From my conversations with Mr. Rhodes, I understood that the company knew if it was unable to successfully come to terms on a renewed employment
contract, that Dr. Babish would leave the company. At least as early as my first conversation with Mr. Rhodes on or about February 11, 1997, Mr. Rhodes, and therefore the company, knew of the possibility that Dr. Babish might resign.
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RONALD J. FOLK
Sworn to before me this
9th day of May, 1997.
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Notary Public
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