|A bit of balance sheet cleanup:|
Form 8-K for KNOT INC
Entry Material Agreement
ITEM 1.01. Entry into a Material Definitive Agreement.
On September 13, 2004, The Knot, Inc. ("The Knot") entered into an Agreement of Settlement and Mutual Release with America Online, Inc. ("AOL"), a wholly owned subsidiary of Time Warner Inc. (the "Settlement"), pursuant to which The Knot will make a cash payment of $1.2 million to AOL constituting full and final settlement of amounts due with respect to the Amended and Restated Anchor Tenant Agreement effective July 23, 1999 between The Knot and AOL. As a result of the Settlement, The Knot will reverse a previously recorded liability of $2.4 million and reflect a non-cash benefit of $1.2 million in the quarter ended September 30, 2004.
The Knot believes that Time Warner Inc. and AOL beneficially owned 5.6% of The Knot's common stock as of September 13, 2004, based in part upon information set forth in a Schedule 13G/A filed with the Securities and Exchange Commission on February 12, 2004 by Time Warner, Inc.