Note 12 Related Party Transactions The Company entered into a two-year agreement on May 20, 1997, to employ its new President and Chief Operating Officer. Under the terms of the agreement, the Company agreed to reimburse the officer for legal costs in...Filenet Corp • March 31st, 1998 • Services-computer integrated systems design
The Company entered into a two-year agreement on May 20, 1997, to employ its new President and Chief Operating Officer. Under the terms of the agreement, the Company agreed to reimburse the officer for legal costs in defending a lawsuit from the officer's former employer. The case was settled and the total cost to the Company was charged to compensation expense in 1997. Watermark originally entered into a republishing and distribution agreement with a UK company (the Distributor) which provided the Distributor with exclusive distribution rights of Watermark's products in defined territories. The Chief Executive Officer of the Distributor is the brother of Watermark's then President and Chief Executive Officer. During 1995, Watermark elected to purchase the portion of the Distributor's business related to selling Watermark's products at a negotiated price of $2.5 million that is included in merger and other costs in 1995.
