Legal Proceedings.
−Removed: We may be involved in legal matters arising in the ordinary course of business from time to time.
+Added: Vaden Landers
+Added: On January 19, 2021, we initiated a lawsuit in Bexar County, Texas against our former Chief Revenue Officer, Vaden Landers.
+Added: In the lawsuit, which is styled:
+Added: Vaden Landers , Cause No.
+Added: 2021CI01069, 407th Judicial District Court, Bexar County, Texas, we allege that Mr.
+Added: Landers violated the provisions of his employment agreement dated September 1, 2017 - specifically that Mr.
+Added: Landers violated his non-compete obligations.
+Added: The state court lawsuit only seeks injunctive relief against Mr.
+Added: The Company also instituted an action before the American Arbitration Association on February 2, 2021.
+Added: Landers initially refused to participate in the arbitration proceeding.
+Added: After hearings in Bexar County state court proceeding, all of the parties' claims, excluding Mr.
+Added: Lander's claims for defamation and tortious interference with contract, were ordered to be heard by the American Arbitration Association.
+Added: Landers’ allegations and do not believe that his counterclaims have any merit.
+Added: On or about April 27, 2021, Mr.
+Added: Landers filed his Answering Statement and Counterclaim against Usio in the arbitration proceeding.
+Added: Landers alleged a variety of defenses to Usio's claim that Landers violated the non-compete provisions of his employment agreement.
+Added: Landers also asserts a counterclaim for a declaratory judgment finding the non-compete provisions are unenforceable.
+Added: Landers further alleges that Usio breached the terms of his employment agreement because Mr.
+Added: Landers' resignation was for good reason thus entitling Mr.
+Added: Landers to deferred compensation.
+Added: Landers' allegations.
+Added: Through our investigation, we have learned that Mr.
+Added: Landers committed other violations of his employment agreement and intends to pursue those claims in arbitration.
+Added: Both the state court litigation and the arbitration are in their initial stages.
+Added: Usio recently served Mr.
+Added: Landers with a request for production of documents in the Bexar County state court proceeding, but he has not responded at this time.
+Added: Aside from these proceedings above, we may be involved in legal matters arising in the ordinary course of business from time to time.
While we believe that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which we are or could become involved in litigation will not have a material adverse effect on our business, financial condition or results of operations.
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