On July 22, 2013, Blue Equity terminated the Management Services Agreement (“MSA”) between the Company and Blue Equity following the Company’s annual meeting of shareholders in July at which the shareholders failed to ratify the Company’s issuance of options to purchase 1,500,000 shares to Blue Equity. In connection with its termination of the Management Services Agreement, Blue Equity stated it was exercising its right to require the Company to repurchase the 125,000 shares that Blue Equity’s affiliate had previously purchased from the Company at a price of $4.00 per share in connection with the MSA.