The Management Agreement provides annual incentive compensation during its term equal to 10% of any increases in year-over-year pre-tax income. Also in connection with the Management Agreement, ISA has granted an option for a total of 1,500,000 shares of its common stock to Algar at an exercise price per share of $5.00. The issuance of such options is subject to shareholder approval and exercisability provisions based upon the Company’s performance. The December 2, 2013 closing price per share of the Company’s common stock on the NASDAQ Capital Market was $2.54. The Company will reimburse Algar for expenses incurred in performing its services under the Management Agreement, including salaries of executives and other employees.