On August 31, 2009, we initiated an arbitration proceeding before the American Arbitration Association against the three Crossflo principal officers who were signatories to the Merger Agreement alleging they provided false representations and warranties in the Merger Agreement and alleging nondisclosure of information about Crossflo during the due diligence process leading up to the merger. Those three principal officers deny our claims and have filed counterclaims. Briefing to determine the scope of counterclaims to be arbitrated is pending before the arbitrator. The arbitration is scheduled to begin February 13, 2011

10-Q (Filed: 12-10-2010) p. 23