Granger convinced the Board to authorize the engagement of a third party legal firm of his choice for, in his own words, "support purposes" in connection with the negotiation of the Champion Transaction - it being understood that Granger, a seasoned corporate and securities lawyer, would lead such negotiations in an uninterested fashion. The Board was later surprised to learn that Granger had retained an external legal firm, where Granger was once a partner. More importantly, the Board wishes to underline that the external legal firm invoice totaled $389,000 for the performance of support services over a two-month period.

The Board also notes that R.N. Granger Management Services, Granger's wholly-owned company, also invoiced $101,560 ($82,350 in fees) to Fancamp in connection with services rendered during the financial year ended April 30, 2012.