Item 8.01. Other Events.

In its proxy statement for the Annual Meeting of Shareholders to be held on January 29, 2009, the Company indicated that its executives did not earn performance units during fiscal 2008. Under the Company's executive compensation program, the measurement period for performance units is three years and the performance criteria is based on the Company's stock performance compared to a group of industry peer companies. For performance units granted in 2005 and scheduled to vest in 2008, the Company's stock performance did not satisfy the performance criteria and the performance units lapsed.

Although the Company's stock performance did not meet the criteria for earning performance units during that time period, the Company's revenues for fiscal 2007 and 2008 were record revenues. The Compensation Committee decided to recognize that achievement. In lieu of the performance units, executives holding performance units maturing in 2008 were granted bonus stock equal to 1/3 the number of performance units that would have been earned had the "target" (average of the peer group) been met. Because the performance unit award granted in 2005 included a tax gross-up, a tax gross-up on the bonus stock award was also provided.

In addition to the above clarification, the Company has decided that equity awards granted after January 12, 2009 to executive officers will not have tandem cash tax rights or tax gross-ups associated with such awards.

---