[Here are notes on what Judge Sabraw said on the conference call hearing this morning. -Carol Spooner]

COURT: to the extent possible, my view that Settlement Agreement and bylaws should be harmonized. In that process, interpretation of the Settlement Agreement should be interpreted as reasonably narrow as possible so that as much or as many of the bylaws may remain in effect.

In light of the court's view these documents should be harmonized and bylaws remain in effect to extent possible, provisions of bylaws that restrict employees and managers should remain in effect. The intention of Paragraph 7 of the Settlement Agreement was not to specifically override or overrule these proscriptions in bylaws.

The Court finds Mr. Ganter not eligible to be appointed by Darrow.

The Court understands the first meeting of the interim board is scheduled for tomorrow. I do not know whether or if Ms. Darrow will have opportunity to make another nomination, and whether that person could attend, but in absence of a representative tomorrow from Houston LAB, the board meeting can go forward. When the Houston LAB representative is identified, he can be seated and can participate in the activities of the Interim Board. Court expects Darrow to take some reasonable time to nominate an appropriate person to sit on the Interim Board. Darrow has had some difficulty in finding an appropriate nominee. The Court will not set a specific deadline, except within a reasonable period of time Darrow will make her appointment, and following that appointment that nominee will be seated at the next meeting of the Interim Board.