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YTB Revises Costs of REZConnect DealJuly 24, 2009 By: George Dooley
YTB International revised its estimates of the termination costs associated with its REZConnect Technologies, Inc. unit. REZConnect was a wholly owned subsidiary. Last month, it entered into an Employment Severance Agreement with Michael and Derek Brent, former CEO and President of REZConnect, respectively. At the time YTB filed the initial Form 8-K with the Securities and Exchange Commission (SEC), it said it was unable, in good faith, to make a determination of the estimates of the total amount of costs to be incurred in connection with the transaction.
In a statement, YTB said:
“The contract termination costs associated with the separation of Michael and Derek Brent total approximately $950,000 and $1,399,000, respectively, or approximately $2,349,000 in the aggregate. These amounts include the value of Company stock and cash payments due to each of Michael and Derek Brent pursuant to the terms of the Employment Severance Agreement and will result in future cash expenditures of approximately $629,000.”