SPENCER, IA – January 11, 2010 – (Motor Sports Newswire) – On January 6, 2011, Cycle Country Accessories Corp. (“Cycle Country”) notified NYSE Amex LLC (the “Exchange”) that, as a result of the resignation of Daniel Thralow from the Company’s Board of Directors, as described in Item 5.02 of this report, the Company no longer complies with Section 803B(2)(c) of the Exchange’s Company Guide, which requires that the Company’s audit committee have at least two members, both of whom must be independent. In accordance with Section 802(b) of the Company Guide, the Company has until its next annual meeting to regain compliance with this requirement. The board is currently considering candidates and intends to appoint an independent director to fill the vacancy on the board and the audit committee as soon as possible.
Daniel Thralow has resigned as a member of the Company’s Board of Directors effective December 31, 2010. Mr. Thralow also served as a member of the Company’s Audit Committee at the time of his resignation. The Company is not aware of any disagreement causing Mr. Thralow’s resignation.Jeffrey M. Tetzlaff has resigned as the Company’s Chief Executive Officer effective December 31, 2010 (the “Effective Date”) to pursue other interests. Mr. Tetzlaff also resigned from the Company’s Board of Directors as of the Effective Date. The Board of Directors has appointed Robert Davis, the Company’s Chief Operating Officer and Chief Financial Officer to act as interim Chief Executive Officer.
In connection with Mr. Tetzlaff’s resignation, the Company has entered into a Separation Agreement and Release of Claims with Mr. Tetzlaff dated the Effective Date, a copy of which is attached as an exhibit to this report and which provides, among other things, for certain severance payments to Mr. Tetzlaff, a limited mutual release of claims and Mr. Tetzlaff’s agreement to surrender the shares of Company stock Mr. Tetzlaff was awarded under his Executive Employment Agreement, dated as of July 1, 2010.
SOURCE: CYCLE COUNTRY ACCESSORIES CORP.