Election of New Director

Effective January 4, 2013, John L. Morgan was elected as a director of the Company by action taken by its Board of Directors. Mr. Morgan is the Chairman of the Board and Chief Executive Officer of Winmark Corporation, a position he has held since 2000. Winmark is a public company (NASDAQ: WINA) that is a franchisor of several value-oriented retail business concepts and a provider of middle market equipment leasing and small ticket business financing. He was an independent investor/business consultant from April 1999 to February 2000, and, prior thereto, he was the founder of Winthrop Resources Corporation, a business equipment leasing company, and served as its President from March 1982 through March 1999. In addition, Mr. Morgan is currently a private investor and serves as a member of Rush River Group, LLC.

Mr. Morgan was elected as a director pursuant to authority granted in the Company's bylaws to its Board of Directors. Pursuant to the Company's Stock Plan, Mr. Morgan will be awarded 1,250 shares for his service from his election as a director to the date of the next annual meeting of shareholders. Thereafter, he will receive the same cash and equity compensation provided to other non-executive directors as described in the Company's proxy materials. Mr. Morgan's election to the Board was not undertaken pursuant to any plan, contract or other arrangement, or in connection with any event, and, except for the foregoing compensation arrangements, Mr. Morgan will not receive any grant or award under any plan, contract or arrangement by virtue of or in connection with his election to the Board.

(d) Exhibits

The following are filed or furnished as Exhibits to this Report:

Exhibit No.    Description of Exhibit
99.1           Press Release dated January 9, 2013 announcing appointment of John
               Morgan as Company director.