Einstein Bros 2005 Annual Report Download - page 14

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
Information with respect to our headquarters, training, production and commissary facilities is presented below:
Location Facility Size
Golden, CO(1) Headquarters, Support Center, Test Kitchen 46,802 sq. ft.
Hamilton, NJ (2)
Franchise Support Center, Training Facility 6,637 sq. ft.
Whittier, CA(3)
Production Facility 54,640 sq. ft.
Walnut Creek, CA(4)
Administration Office—Noah’ s 2,190 sq. ft.
Carrolton, TX(5)
USDA Approved Commissary 5,000 sq. ft.
Orlando, FL(6)
USDA Approved Commissary 7,422 sq. ft.
Denver, CO(7)
USDA Approved Commissary 9,200 sq. ft.
(1) This facility is leased through May 31, 2007.
(2) This facility is leased through October 31, 2008.
(3) This facility is leased with an initial lease term through November 30, 2006 with two five-year extension options.
(4) This facility is leased through February 29, 2008.
(5) This facility is currently under a month-to-month lease.
(6) This facility is leased through October 31, 2010.
(7) This facility is leased through October 13, 2008.
ITEM 3. LEGAL PROCEEDINGS
We are subject to claims and legal actions in the ordinary course of our business, including claims by or against our franchisees, licensees and
employees or former employees and/or contract disputes. We do not believe that an adverse outcome in any currently pending or threatened matter
would have a material adverse effect on our business, results of operations or financial condition.
On July 31, 2002, Tristan Goldstein and Valerie Bankhordar, former restaurant managers, filed a putative class action against Einstein and
Noah Corp. (“ENC”) in the Superior Court for the State of California, County of San Francisco for failure to pay overtime wages to managers and
assistant managers of the California Noah’ s restaurants. In April 2004, we agreed to settle the litigation, which agreement was subsequently
approved by the court in January 2006. Amounts representing our estimate to settle this litigation were previously recorded in general and
administrative expenses during fiscal 2003, were paid subsequent to fiscal year-end 2005 and did not have a material adverse effect on our
consolidated financial condition or results of operations.
On September 14, 2004, Atlantic Mutual Insurance Company brought an action in the Superior Court of New Jersey Law Division: Morris
County, against the Company, certain of its former officers and directors and insurers seeking declaratory judgment on insurance coverage issues in
previously resolved litigation against Jerold Novack and Ramin Kamfar, former officers. Mr. Kamfar cross-claimed against us, claiming a right to
be indemnified for expenses. The Company, Mr. Kamfar, Atlantic Mutual Insurance Company and Lexington Insurance Company settled the
lawsuit in February 2006. The resolution of this lawsuit did not have a material effect on our consolidated financial condition or results of
operations. Because the Company asserts that the advancement and indemnity claims are an insured loss under the Company’ s policy with National
Union, the Company has filed an arbitration proceeding against National Union, the Company’ s officers and directors liability insurer for the
applicable time period.
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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No items were submitted to a vote of security holders in the fourth quarter of the fiscal year ended January 3, 2006.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Our common stock is quoted on the Pink Sheets OTC market under the symbol “NWRG.PK”. The following table sets forth the high and low
bid information for our common stock for each fiscal quarter during the periods indicated. Bid information quoted reflects inter-dealer prices
without retail mark-up, markdown or commission and may not necessarily represent actual transactions.
Year ended January 3, 2006: High Low
First Quarter
$ 4.25 $ 2.00