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Oct 11, 2012 08:47AM

From the 9/17 8-K:

Item 1.02 Termination of a Material Definitive Agreement.

Termination of Agreement for Legal Services

On September 11, 2012 the Company and Duane Morris LLP terminated the March 23, 2007 legal representation agreement, effective immediately. The termination pertains to Flash-R patent enforcement activities, as outlined in the March 23, 2007 agreement. Pursuant to the termination agreement, Duane Morris will continue to be responsible for any matters directly related to those actions in which Duane Morris had previously represented e. Digital, without any additional fees charged to e.Digital. Also Duane Morris will receive its previously agreed contingency fee on certain future royalty payments.

A copy of the termination is filed herewith as Exhibit 99.2 and is incorporated herein by reference. The summary of the transaction set forth above does not purport to be complete and is qualified in its entirety by reference to such exhibit.

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