Einstein Bros 2007 Annual Report Download - page 25

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
28
On September 18, 2007, Eric Mathistad, a former store manager, filed a putative class action against the Company in the Superior Court of
California for the State of California, County of San Diego. The plaintiff alleges that defendants failed to pay overtime wages to "salaried
restaurant employees" of its California stores who were improperly designated as exempt employees, and that these employees were deprived of
mandated meal periods and rest breaks. Plaintiff alleges that these actions were in violation of the California Labor Code Sections 1194, et seq.,
500, et seq., California Business and Professions Code Section 17200, et seq., and applicable wage order(s) issued by the Industrial Welfare
Commission. Plaintiff seeks injunctive relief, declaratory relief, attorney's fees, restitution and an unspecified amount of damages for unpaid
overtime and for missed meal and/or rest periods. The Company filed a Demurrer on October 18, 2007 claiming that, inter alia, plaintiff fails to
state a claim against the Company; plaintiff does not state a claim for a joint venture, partnership, common enterprise, or aiding and abetting;
plaintiff's definition of the class is deficient and plaintiff's claims for declaratory judgment regarding Labor Code violations should be dismissed.
On November 14, 2007, Bernadette Mejia, another former store manager, filed a similar case. The Company filed a Demurrer on December 14,
2007 claiming that, inter alia, that another case, (the Mathistad case) was pending between the same putative parties on the same causes of action. It
is the Company's understanding that Ms. Mejia and Mr. Mathistad have agreed to consolidate their actions. Because limited discovery has been
conducted, no class certification proceeding has occurred and because the cases are in their infancy, we cannot predict the outcome of this matter.
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 1, 2008
29
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, ELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES
OF EQUITY SECURITIES
Our common stock was quoted on the Pink Sheets OTC market under the symbol "NWRG.PK" through June 12, 2007. Our common stock
was moved to the NASDAQ Global Market under the symbol "BAGL" as part of our secondary public offering, which was completed on June 13,
2007. 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 1, 2008 (fiscal 2007):
High
Low
First Quarter $ 11.00 $ 5.05
Second Quarter $ 25.00 $ 10.95
Third Quarter $ 19.77 $ 14.08
Fourth Quarter $ 24.90 $ 15.74
Year ended January 2, 2007 (fiscal 2006):
High
Low
First Quarter $ 9.00 $ 3.50
Second Quarter $ 10.25 $ 4.10
Third Quarter $ 13.00 $ 4.15
Fourth Quarter $ 9.00 $ 6.00
As of February 25, 2008, there were 329 holders of record of our common stock. This number does not include individual stockholders who
own common stock registered in the name of a nominee under nominee security listings.
We have not declared or paid any cash dividends on our common stock since our inception. We do not intend to pay any cash dividends in the
foreseeable future, and we are precluded from paying cash dividends on our common stock under our financing agreements.
30
Performance Graph