Doesn't look like a retirement from the details in the 8K. March 2014 is about 6 months out which sounds like a notice period in the employment agreement. The equivalent of $625K a year for 18 months after the notice period seems very generous and makes the retirement look somewhat involuntary and reminiscent of how the co-founder left back in 2011.
I'm not long the stock just own a few $7.50 calls as a lottery ticket play. I think short term RLD can get a nice little pop back to around $8.50 or so depending on how earnings look in a couple of weeks. Longer term I don't see a whole lot of success for RLD as a stand alone company but I could see them being acquired by someone like a Dolby or even a large theater chain that would rather just own the 3D technology instead of renting it.