mktg agrees to redeem senior secured notes that were deemed dilutive

Management fee also reduced as part of lawsuit settlement agreement

By Devika Patel

Knoxville, Tenn., Sept. 21 - mktg, inc. agreed to redeem its senior secured notes in a settlement agreement reached on Sept. 16, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The notes have also been amended to carry a 12.5% coupon.

The agreement, with plaintiff Brian Murphy, settles a lawsuit filed against the company, which claimed that mktg failed to ensure that certain financial statements were prepared correctly. These 2008 statements resulted in the company completing an offering of notes which was dilutive to shareholders.

In addition to redeeming the notes, the company's annual management fee, paid to Union Capital Corp., will be reduced to $62,500 from $125,000 and the company will pay Murphy's legal fees.

The marketing company is based in New York.

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