American Film Technologies, Inc. Settles Its Litigation Against Its Former CEO and Announces a New Beginning.Business & Legal Editors NEW YORK--(BUSINESS WIRE)--Feb. 22, 2000 American Film Technologies, Inc. announced today, in connection with claims made against its former Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Gerald M. Wetzler, in an action filed by stockholders on June 9, 1999 in the Delaware Court of Chancery court of chancery n. pl. courts of chancery A court with jurisdiction in equity. Noun 1. court of chancery - a court with jurisdiction in equity chancery , that the Board concluded that there was no wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do engaged in by Mr. Wetzler and that Mr. Wetzler had, in fact, provided invaluable and dedicated service to the Company. On December 31, 1999, the stockholders who initiated the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.When a person begins a civil lawsuit, the person enters into a process called litigation. settled that litigation with Mr. Wetzler. The terms of the settlement provide for the payment of $1,140,000 on or before September 30, 2000 to Mr. Wetzler for an option to purchase a substantial portion of his holdings in the Company and for a further payment of $900,000 on or before January 1, 2001 to exercise the option. In consideration for those payments, Mr. Wetzler has agreed to extend the due date for the payment of all of his Senior Secured Convertible Notes to January 1, 2001. The Company has further agreed to ratify ratify v. to confirm and adopt the act of another even though it was not approved beforehand. Example: An employee for Holsinger's Hardware orders carpentry equipment from Phillips Screws and Nails although the employee was not authorized to buy anything. all agreements between Mr. Wetzler and the Company, including his Employment Agreement and Senior Secured Note Agreements. In addition, the Company has paid the sum of $100,000 to the law firm which defended Mr. Wetzler in the litigation and has agreed to pay an additional $40,000 to Mr. Wetzler's counsel in the future as indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from under Delaware law. In making the announcement, Mr. Fred Rudy, the President of the Company, extended the Company's apologies to Mr. Wetzler for any inconvenience or difficulty caused by the Delaware litigation. Further, he expressed the hope that the current management will be working in conjunction with Mr. Wetzler in the future to achieve the goals of the Company. |
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