Mr. Roger Hemminghaus, a director since June 2000 and the Company's lead independent director, has been appointed as the Company's interim Chief Executive Officer and Chairman of the Board. From 1987 to 1999, Mr. Hemminghaus served as Chief Executive Officer and Chairman of Diamond Shamrock, Inc. and Ultramar Diamond Shamrock Corp., a refining, pipeline and retail company, and he is a past Chairman of the Federal Reserve Bank of Dallas and former Chairman of the Board of CTS Corporation.

Certain of the duties previously undertaken by Mr. McGeachy will be filled by existing members of the Company's executive team, all of whom will report to Mr. Hemminghaus. This team includes Mr. John A. Lacy, who has been named Executive Vice President – Technology and Operations, Mr. Robert J. McCarten, who has been named Executive Vice President and President – Tandy Brands, and Mr. Chuck Talley, who has been named Executive Vice President and Chief Financial Officer.

As interim Chief Executive Officer, Mr. Hemminghaus will earn an annualized salary of $162,000, in addition to his retainer as a director, and he will be entitled to an additional payment in the event a change of control of the Company occurs. In addition, the Board of Directors approved salary increases for Mr. McCarten to $275,000 and Mr. Talley to $225,000 in recognition of their increased responsibilities. The Board of Directors also approved a performance bonus of $100,000 for Mr. Talley, which will be payable as a result of and on the successful completion of key financial transactions, and an increase in Mr. Talley's fiscal 2014 long-term incentive target level to $300,000.