AFC & DSC– Intercompany Creditor Agreement may Violate Anti-Trust Laws

AFC alleged in a verified complaint filed August 17, 2005 that its former
employees took computer records and trade secrets to their new jobs at DSC,
founded by former AFC president John Fuller.

DSC’s counterclaim alleged that AFC refused to enter into a blanket intercompany
creditor agreement with DSC and engaged in unfair competition that interfered with
DSC's prospective business relationships by providing false information to
potential customers of DSC.

DSC sought $25,000,000 for punitive and other damages and contended AFC’s lawsuit
was an attempt to drive DSC out of business, and to illegitimately intimidate
current AFC employees from pursuing employment at DSC.

Twelve DSC employees were required to take paid leaves of absence ranging from two
to six months in the settlement agreement between AFC and DSC.