TORONTO – Two former executives of Unique Broadband Systems (UBS), the parent company of defunct Look Communications, are suing the company after being removed from office at a shareholders meeting earlier this month.
Former CEO Gerald McGoey and chief technology consultant Alex Dolgonos are seeking $7.41 million and $6.015 million, respectively, in immediate termination payments under the terms of their services agreement. They have also asked that a deferred bonus award of $1.2 million, which UBS said was awarded to each of them on August 28, 2009, and a share appreciation rights cancellation payment of $600,000 and $330,000, respectively, plus interest, also be paid to them.
UBS said that McGoey and the remainder of the former board of directors of UBS provided a notice of termination under their respective services agreement on that same date that they were removed from office by shareholders at a special meeting on July 5, 2010. The company claims that McGoey and the former board failed to plainly disclose, prior to May 31, 2010, that failing to elect McGoey to the board of directors could allegedly constitute a "company default" under his services agreement that triggers $8.61 million in payments, which it says exceeds 100% of UBS’ current market capitalization.
"We continue to review the circumstances surrounding Messrs. McGoey and Dolgonos’ claims for termination payments under the services agreements and the company will respond accordingly," said Grant McCutcheon, CEO of UBS, in a statement Tuesday.
