Item 1.01 Entry into a Material Definitive Agreement

On August 10, 2012, the Company signed Amendment No. 1 to its Amended and Restated Schedule to its Loan and Security Agreement executed July 27, 2010 with its bank. This amendment No. 1 changes the definition of Tangible Net Worth. The new definition allows for the inclusion of leasehold improvements. The amendment is filed as an exhibit to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

Exhibit No. Description

10.3 Amendment No. 1 to Amended and Restated Schedule to Loan and Security Agreement.