| | Warrant Extension. On September 20, 2006, the Board of Directors of the Registrant determined, effective November 15, 2006, to extend the exercise period of an aggregate of 4,979,198 warrants to purchase common stock of the Registrant at an exercise price of $.85 per share in cash for a period of 12 months. The warrants were scheduled to expire on June 30, 2007 and will now expire on June 30, 2008. iGate Civil Action. On November 13, 2006, a federal district for the Eastern District of North Carolina, Southern Division, in iGate, Inc. et al. v. Gibralter Publishing, Inc. Market Central, Inc. (the prior name of the Registrant), Terrance J. Leifheit and Edward Bohn, entered an order granting iGate’s motion to enforce the previously modified settlement agreement among the parties. Pursuant to the order, iGate is entitled to enforce against the Registrant the outstanding balance due under the settlement agreement in the amount of $300,000 as of October 18, 2006. The court also entered an order granting iGate a judgment against the Registrant in the amount of $300,000. Previously in May 2006, following a mediated settlement conference, the Registrant and the other parties in the action signed a settlement agreement with iGate which provided that the Registrant agreed to pay iGate $325,000 on or before June 30, 2006. The settlement agreement further provided that if the settlement amount of $325,000 was not timely paid or thereafter within a 15-day cure period, then the Registrant would be required to pay a revised settlement amount of $400,000. The Registrant failed to pay the $325,000 by June 30, 2006, and failed to cure the default. The settlement amount increased to $400,000. Subsequently, the Registrant made two payments to iGate totaling $100,000 as of September 14, 2006. A balance of $300,000 remained outstanding prior to iGate’s motion to enforce the settlement agreement. |
