Einstein Bros 2002 Annual Report Download - page 11

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http://www.sec.gov/Archives/edgar/data/949373/000104746903027186/a2116520z10-ka.htm[9/11/2014 10:14:22 AM]
Total 460 287 747
Information with respect to our headquarters, training and production facilities is presented below:
Location
Facility
Size
Hamilton, NJ (1) Headquarters, Support Center, Test Kitchen 13,300 sq. ft.
Golden, CO(2) Headquarters, Support Center, Test Bakery 46,400 sq. ft.
Whittier, CA(3) Production Facility 56,640 sq. ft.
Los Angeles, CA(4) Production and Distribution Facility 24,000 sq. ft.
Greenville, SC(5) Production Facility 12,500 sq. ft.
Eatontown, NJ(6) Office Space, Production Facility 101,000 sq. ft.
Branford, CT(7) Office, Training Center, Roasting Facility, Storage 7,400 sq. ft.
Walnut Creek, CA(8) Administration Office—Noah's 3,290 sq. ft.
(1) This facility is leased through October 31, 2005.
(2) This facility is leased through May 31, 2007.
11
(3) This facility is leased with an initial lease term through November 30, 2005 with two five-year extension options.
(4) This facility is leased with an initial lease term through April 30, 2007 and two five-year extension options. Effective March 2003, this
facility is no longer in operation.
(5) This facility is located on a 1.45 acre parcel of land owned by us. This facility is not currently in operation. Effective May 7, 2003,
Manhattan Bagel Company sold this facility.
(6) This facility is leased. Lease term ends January 31, 2005 and is subject to two five-year extension options. This facility is not currently in
operation.
(7) This facility is leased through December 31, 2003.
(8) This facility is leased through February 28, 2005.
ITEM 3. LEGAL PROCEEDINGS
We are subject to claims and legal actions in the ordinary course of our business, including claims by our franchisees. We do not believe that
an adverse outcome in any currently pending or threatened matter, other than described below, would have a material adverse effect on our
business, results of operations or financial condition.
On April 3, 2002, we were notified by the Securities and Exchange Commission that the Commission is conducting an investigation into the
resignation of our former Chairman, R. Ramin Kamfar, the termination for cause of our former Chief Financial Officer, Jerold Novack, and the
delay in filing our Form 10-K for 2001. We are cooperating fully with the investigation. We are also cooperating fully with a recent Department of
Justice inquiry relating to these issues. Further, several of our former and present officers and directors have requested that we advance reasonable
legal expenses on their respective behalves to the extent any of them is or has been requested to provide information to the Commission in
connection with its investigation. We are fulfilling our obligations as required by applicable law and our By-Laws.
On July 31, 2002, Tristan Goldstein, a former store manager, and Valerie Bankhordar, a current store manager, filed a purported class action
complaint against Einstein in the Superior Court for the State of California, County of San Francisco. The plaintiffs allege that Noah's failed to pay
overtime wages to managers and assistant managers of its California stores, whom it is alleged were improperly designated as exempt employees
in violation of California and Business Profession Code Section 17200. As a result of subsequent communications regarding the circumstances
under which we purchased Einstein out of bankruptcy, the plaintiffs filed a first amended complaint disclaiming back wages for the period prior to
June 19, 2001. However, the first amended complaint added as defendants certain former directors and officers of Einstein. The first amended
complaint also added a second cause of action seeking to invalidate releases obtained from Noah's assistant managers pursuant to the settlement of
a Department of Labor investigation. We filed a demurrer to the first amended complaint, which the plaintiffs opposed. Subsequent to the filing of