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Fuel Systems Solutions (FSYS)
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FSYS » Topics » (b) Contingencies

These excerpts taken from the FSYS 10-K filed Mar 10, 2009.

(b) Contingencies

The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on the Company’s consolidated financial statements.

(b) Contingencies

The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on the Company’s consolidated financial statements.

(b) Contingencies

The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on the Company’s consolidated financial statements.

(b) Contingencies

The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or
threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on the Company’s consolidated financial statements.

FACE="Times New Roman" SIZE="2">(c) Investment and Tax Savings Plan

The Company’s Investment and Tax Savings Plan (the
“401(k) plan”) is a defined contribution plan, which is qualified under Internal Revenue Service Code Section 401(k). The 401(k) plan is subject to the provisions of the Employee Retirement Income Security Act of 1974. All U.S.
employees who are at least age twenty-one or older are eligible to participate in the 401(k) plan immediately and can enter the 401(k) plan on the first day of each month. Eligible employees of the Company who elect to participate in the 401(k) plan
may contribute into the plan not less than 1% or more than 15% of compensation. The Company’s matching contributions are discretionary and match elective salary deferrals up to 3.0% of compensation. Approximately 73% of eligible employees were
enrolled in the 401(k) plan at December 31, 2008. Employer contributions approximated $0.2 million, $0.2 million, and $0.2 million for 2008, 2007, and 2006, respectively.

STYLE="margin-top:12px;margin-bottom:0px; margin-left:2%">(d) Deferred Compensation Plan

The
Company has a non-qualified deferred compensation plan whereby selected key employees may elect to defer a portion of their compensation each year. This plan is administered by a third party plan administrator. Employee contributions are invested in
mutual funds and consequently are considered to be traded instruments. The Company matches 50% of the employee contribution up to an annual maximum of $12,500. Participants in the plan are 25% vested in the amount of the Company matching
contributions upon attaining two years of service, with an additional 25% vested for each additional year of service thereafter. The Company recognizes the expense for the Company match over the service period. Employer matching contributions
approximated $78,000, $59,000 and $13,000 for 2008, 2007, and 2006, respectively.

The cash contributed by the Company on the
participant’s behalf has been invested in Company common stock acquired in the open market, which is carried at cost and classified as a deduction of equity in shares held in treasury on the consolidated balance sheet (see Note 6 for further
discussion). The value of the Company’s common stock is calculated and recorded as a liability at market value and is classified as a long-term liability on the Company’s consolidated balance sheet. The Company includes the common stock of
the plan in its computations of basic and diluted net income per share. According to EITF 97-14, Accounting for Deferred Compensation Arrangement Where Amounts Earned are Held in a Rabbi Trust and Invested, the Company consolidates the assets
of the deferred compensation plan as part of the Company’s assets at the end of each quarter, which are classified as long-term assets on the Company’s consolidated balance sheet. At December 31, 2008 and 2007, the assets under the
plan, included in other assets, were $0.7 million and $0.7 million, respectively. At December 31, 2008 and 2007, the liabilities under the plan were $1.3 million and $0.9 million, respectively.

STYLE="margin-top:12px;margin-bottom:0px; margin-left:2%">(e) Employment Agreements

These excerpts taken from the FSYS 10-K filed Apr 22, 2008.

(b) Contingencies

The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or threatened claims, actions, or proceedings against the Company are expected to have a material adverse effect on the Company’s consolidated financial statements. MTM is a defendant in a lawsuit brought by ICOM, SrL, filed in the local court at Milan, Italy. That lawsuit initially sought injunctive relief and damages for infringement of ICOM’s alleged exclusive rights to sell ring-style gaseous fuel tanks in Italy. The trial court initially denied the plaintiff’s motion for injunctive relief and subsequently denied the plaintiff’s damages claims. The case remains on appeal and the final hearing was held on March 4, 2008; each party is required to submit their written documents by June 2008, and the court will render their decision by approximately September 2008. We believe the plaintiff’s claims are without merit and that the court will most likely uphold the original trial court’s decision.

(b) Contingencies

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or threatened claims,
actions, or proceedings against the Company are expected to have a material adverse effect on the Company’s consolidated financial statements. MTM is a defendant in a lawsuit brought by ICOM, SrL, filed in the local court at Milan, Italy. That
lawsuit initially sought injunctive relief and damages for infringement of ICOM’s alleged exclusive rights to sell ring-style gaseous fuel tanks in Italy. The trial court initially denied the plaintiff’s motion for injunctive relief and
subsequently denied the plaintiff’s damages claims. The case remains on appeal and the final hearing was held on March 4, 2008; each party is required to submit their written documents by June 2008, and the court will render their decision
by approximately September 2008. We believe the plaintiff’s claims are without merit and that the court will most likely uphold the original trial court’s decision.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">(c) Investment and Tax Savings Plan

SIZE="2">The Company’s Investment and Tax Savings Plan (the “Plan”) is a defined contribution plan, which is qualified under Internal Revenue Service Code Section 401(k). The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974. All U.S. employees who are at least age twenty-one or older are eligible to participate in the Plan on the first day of employment with the Company. Eligible employees of the Company who elect to participate
in the Plan may contribute into the Plan not less than 1% or more than 15% of compensation. The Company’s matching contributions are discretionary and match elective salary deferrals up to 3.0% of compensation. Approximately 73% of eligible
employees were enrolled in the 401(k) plan at December 31, 2007. Employer contributions approximated $0.2 million, $0.2 million, and $0.3 million for 2007, 2006, and 2005, respectively.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">(d) Deferred Compensation Plan

The
Company has a non-qualified deferred compensation plan wherein selected key employees may elect to defer a portion of their compensation each year. The Plan is administered by a third party Plan administrator. Employee contributions are invested in
mutual funds and consequently are considered to be traded instruments. The Company matches 50% of the employee contribution up to an annual maximum of $12,500. Participants in the plan are 25% vested in the amount of the Company matching
contributions upon attaining two years of service, with an additional 25% vested for each additional year of service thereafter. The Company recognizes the expense for the Company match over the service period. In 2007, 2006, and 2005, the Company
recorded expense of $58,000, $30,000 and $40,000 respectively.

The cash contributed by the Company on the participant’s behalf is
invested in Company common stock acquired in the open market, which is carried at cost and classified as a deduction of equity in shares held in treasury on the balance sheet (see Note 8 for further discussion). The value of the Company’s
common stock is calculated and recorded as a liability at market value and is classified as a long-term liability on the Company’s balance sheet. The Company includes the common stock of the plan in its computations of basic and diluted net
income on net loss per share. According to EITF 97-14, Accounting for Deferred Compensation Arrangement Where Amounts Earned are Held in a Rabbi Trust and Invested, the Company consolidates the assets of the Plan as part of the Company’s
assets at the end of each quarter, which are classified as long-term assets on the Company’s balance sheet. At December 31, 2007 and 2006, the assets under the plan, included in other assets, were $0.7 million and $1.3 million,
respectively. At December 31, 2007, the liabilities under the plan were $0.9 million, of which $0.2 million is included in accrued expenses and $0.7 million is included in other liabilities. At December 31, 2006, the liabilities under the plan,
included in other liabilities, were $1.7 million.

This excerpt taken from the FSYS 10-K filed Oct 31, 2007.

(b) Contingencies

The Company is subject to certain claims that arise in the ordinary course of business. In the opinion of management, no pending or threatened claims, actions, or proceedings against the Company are expected to have a material adverse effect on the Company’s financial statements. MTM is a defendant in a lawsuit brought by ICOM, SrL, filed in the local court at Milan, Italy. That lawsuit initially sought injunctive relief and damages for infringement of ICOM’s alleged exclusive rights to sell ring-style gaseous fuel tanks in Italy. The trial court initially denied the plaintiff’s motion for injunctive relief and subsequently denied the plaintiff’s damages claims. The case remains on appeal with the final hearing scheduled on March 4, 2008; Company’s management believes that the plaintiff’s claims are without merit.

EXCERPTS ON THIS PAGE:

10-K (4 sections)
Mar 10, 2009
10-K (2 sections)
Apr 22, 2008
10-K
Oct 31, 2007

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