UNITED
STATES
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SECURITIES
AND EXCHANGE COMMISSION
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Washington,
D.C. 20549
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Schedule
14A
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(Rule
14a-101)
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SCHEDULE
14A INFORMATION
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Proxy
Statement Pursuant to Section 14(a) of
the
Securities Exchange Act of 1934
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Filed
by the Registrant
x
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Filed
by a Party other than the Registrant
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Check
the appropriate box:
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o
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Preliminary
Proxy Statement
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o
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Confidential,
for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
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x
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Definitive
Proxy Statement
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o
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Definitive
Additional Materials
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o
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Soliciting
Material Pursuant to §240.14a-12
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Western
Capital Resources, Inc.
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(Name
of Registrant as Specified In Its Charter)
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(Name
of Person(s) Filing Proxy Statement if other than the
Registrant)
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Payment
of Filing Fee (Check the appropriate box):
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x
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No
fee required.
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o
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Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
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(1)
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Title
of each class of securities to which transaction
applies:
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(2)
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Aggregate
number of securities to which transaction applies:
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(3)
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Per
unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (set forth the amount on which the filing fee is
calculated and state how it was determined):
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(4)
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Proposed
maximum aggregate value of transaction:
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(5)
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Total
fee paid:
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o
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Fee
paid previously with preliminary materials.
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o
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Check
box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
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(1)
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Amount
Previously Paid:
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(2)
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Form,
Schedule or Registration Statement No.:
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(3)
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Filing
Party:
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(4)
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Date
Filed:
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Western
Capital Resources, Inc.
11550 “I”
Street, Suite 150
Omaha,
Nebraska 68137
NOTICE
OF ANNUAL MEETING OF SHAREHOLDERS
TO
BE HELD ON MAY 7, 2010
TO
THE SHAREHOLDERS OF WESTERN CAPITAL RESOURCES, INC.:
Please
Take Notice
that Western Capital Resources, Inc. will hold its Annual
Meeting of Shareholders at the principal executive office of Western Capital
Resources, Inc. at 11550 “I” Street, Suite 150, Omaha, Nebraska 68137, on
Monday, May 7, 2010 at 8:30 a.m. local time, or at any adjournment or
adjournments thereof. We are holding the meeting for the following
purposes:
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1.
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To
ratify the appointment of Lurie Besikof Lapidus & Company, LLP as our
independent registered public accounting firm for our fiscal year ending
December 31, 2010;
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2.
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To
elect four directors to our Board of Directors;
and
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3.
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To
transact any other business as may properly come before the meeting or any
adjournments thereof.
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Only shareholders of record at the
close of business on April 16, 2010 will be entitled to vote at the meeting or
any adjournments thereof. Your attention is directed to the Proxy
Statement accompanying this Notice for a more complete statement of the matters
to be considered at the meeting. A copy of the Annual Report on Form 10-K
for the year ended December 31, 2009, as filed with the SEC, accompanies this
Notice and is also available on the Internet at
www.westerncapital.investorroom.com.
By
Order of the Board of Directors,
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John
Quandahl
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Chief
Executive
Officer
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April 26,
2010
Important Notice Regarding the
Availability of Proxy Materials for the Shareholder Meeting to be held on
May 7, 2010.
This Proxy Statement for our 2010 annual meeting
and our 2009 Annual Report on Form 10-K are available on the Internet at
the following
website: www.westerncapital.investorroom.com
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Western
Capital Resources, Inc.
11550 “I”
Street, Suite 150
Omaha,
Nebraska 68137
PROXY
STATEMENT
2010
ANNUAL MEETING OF SHAREHOLDERS
to
be held on May 7, 2010
This Proxy Statement is furnished in
connection with the solicitation of proxies by the Board of Directors of Western
Capital Resources, Inc. (“Western Capital,” the “Company,” “we,” “our” or “us”)
for use at the 2010 Annual Meeting of Shareholders (the “Annual Meeting”) to be
held at the principal executive office of Western Capital Resources, Inc. at
11550 “I” Street, Suite 150, Omaha, Nebraska 68137, at 8:30 a.m. local time on
May 7, 2010, for the following purposes:
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1.
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To
ratify the appointment of Lurie Besikof Lapidus & Company, LLP as our
independent registered public accounting firm for our fiscal year ending
December 31, 2010;
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2.
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To
elect four directors to our Board of Directors;
and
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3.
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To
transact any other business as may properly come before the meeting or any
adjournments thereof.
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This
Proxy Statement and the enclosed proxy card are first being mailed or given to
shareholders on or about April 26, 2010.
Proxies
and Voting Procedures
Only shareholders of record at the
close of business on April 16, 2010 (the “record date”) will be entitled to
vote at the Annual Meeting or any adjournments thereof. There were
7,446,007 shares of our common stock outstanding and 10,000,000 shares of our
preferred stock outstanding on the record date. Each share of common and
preferred stock outstanding on the record date entitles the holder thereof to
one vote upon each matter presented at the Annual Meeting. A quorum,
consisting of one-third of the outstanding shares of capital stock entitled to
vote at the Annual Meeting, must be present in person or represented by proxy
before action may be taken at the Annual Meeting.
Each proxy returned to the Company will
be voted in accordance with the instructions indicated thereon. If a
shareholder returns a properly executed proxy without giving voting directions
thereon, the shares will be voted at the discretion of the proxy holders.
Each shareholder who signs and returns a proxy card in the form enclosed with
this Proxy Statement may revoke the proxy at any time prior to its use by (i)
giving written notice of such revocation to an officer of the Company, (ii)
voting in person in an open meeting, or (iii) executing and delivering a new
proxy card to a Company officer. Unless so revoked, the shares represented
by each proxy card will be voted at the Annual Meeting and at any adjournments
thereof. A shareholder’s mere presence at the Annual Meeting does not
revoke any proxy that the shareholder has previously delivered.
If a shareholder abstains from voting
on any matter, the abstention will be counted for purposes of determining
whether a quorum is present at the Annual Meeting for the transaction of
business as well as shares entitled to vote on that matter. Accordingly,
an abstention on any matter (other than the election of directors) will have the
same effect as a vote against that matter. A “broker non-vote” occurs when
a nominee holding shares for a beneficial owner (e.g., a broker or custodian)
votes on one proposal, but records no vote on another proposal because the
nominee does not have discretionary voting power and has not received
instructions from the beneficial owner. Broker non-votes on a matter are
counted as present for purposes of establishing a quorum for the Annual Meeting,
but are not considered entitled to vote on that particular matter.
Consequently, broker non-votes generally do not have the same effect as a
negative vote on the matter.
After the existence of a quorum is
established, an action of the shareholders of the Company, including the
election of directors, generally requires the affirmative vote of the holders of
a majority of shares of capital stock present at the meeting, either in person
or represented by proxy, and entitled to vote on the matter.
Please note that if you are a
beneficial owner of shares registered in the name of your broker, bank,
custodian, nominee or other agent (commonly referred to as holding your shares
in “street name”), you will have received a voting instruction form with these
proxy materials directly from that organization rather than from the
Company. In such a case, you should complete and mail the voting
instruction form as instructed by your broker, bank, custodian, nominee or other
agent to ensure that your vote is counted. If your broker, bank,
custodian, nominee or other agent permits, you may vote by telephone or over the
Internet as instructed by your broker, bank, custodian, nominee or other
agent. If you hold your shares in street name and you wish to vote in
person at the Annual Meeting, you must obtain a legal proxy from your broker,
bank, custodian, nominee or other agent. To do so, follow the instructions
you received with these proxy materials, or contact your broker, bank,
custodian, nominee or other agent to request a legal proxy form.
Street name holders of shares held in
broker accounts should be aware of a change in voting rules, effective January
1, 2010, that will affect whether their shares will be voted in the election of
directors. Under New York Stock Exchange Rule 452 relating to the
discretionary voting of proxies by brokers, brokers will no longer be permitted
to vote shares with respect to the election of directors without instructions
from the beneficial owner. Nevertheless, brokers will still be able to
vote shares held in brokerage accounts with respect to the approval of an
independent registered public accounting firm, even if they do not receive
instructions from the beneficial owner. Therefore, street name holders of
shares held in broker accounts are advised that, if they do not timely provide
instructions to their broker, their shares will not be voted in connection with
the election of directors.
The Board of Directors has determined
to make no recommendation with respect to any of the proposals set forth
above
.
While the Board of Directors knows of
no other matters to be presented at the Annual Meeting or any adjournment
thereof, all proxies returned to the Company will be voted on any such matter in
accordance with the judgment of the proxy holders.
RATIFICATION
OF THE APPOINTMENT
OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
(Proposal
One)
Our Board of Directors and management
are committed to the quality, integrity and transparency of the financial
reports. Independent auditors play an important part in our system of
financial control. Our Audit Committee has appointed Lurie Besikof Lapidus
& Company, LLP (“Lurie Besikof”) as our independent registered public
accounting firm for the fiscal year ending December 31, 2010. A
representative of Lurie Besikof is expected to attend the Annual Meeting and
will be available to make statements and respond to questions from
shareholders.
If the shareholders do not ratify the
appointment of Lurie Besikof, the Audit Committee may reconsider its selection,
but is not required to do so. Notwithstanding the proposed ratification of
the appointment of Lurie Besikof by the shareholders, the Audit Committee may in
its discretion direct the appointment of a new independent registered public
accounting firm at any time during the year without notice to, or the consent
of, the shareholders, if the Audit Committee determines that such a change would
be in the best interests of the Company.
Fees
Billed to Company by Independent Registered Public Accounting Firm
The following table details the fees
billed to the Company by Lurie Besikof for professional services rendered for
the fiscal years ended December 31, 2009 and 2008.
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For
the Fiscal Year Ended December 31,
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2009
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2008
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Audit
Fees
(1)
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$
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295,466
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$
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338,993
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Audit-Related
Fees
(2)
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72,260
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-
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Tax
Fees
(3)
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-
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-
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All
Other Fees
(4)
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-
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-
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Total
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$
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367,726
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$
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338,993
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(1)
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Represents
amounts related to the audit of the Company’s consolidated annual
financial statements and the review of the Company’s interim consolidated
financial statements included in the Company’s quarterly reports on Form
10-Q, and statutory and regulatory filings and engagements. The 2008
fees include services related to restatement of the Company’s financial
statements for the year ended December 31, 2007 and the interim period
through September 30, 2008.
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(2)
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Audit-related
fees represent amounts reasonably related to the performance of the audit
or review of the Company’s consolidated financial statements, but are not
reported under the Audit Fees category. This category may include
fees related to the performance of audits and attestation services not
required by statute or regulations, and accounting consultations about the
application of generally accepted accounting principles to proposed
transactions.
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(3)
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Tax
fees consist of fees for tax compliance, tax advice, tax planning and
corporate tax services. Corporate tax services encompass a variety
of permissible services, including technical tax advice related to tax
matters; assistance with withholding-tax matters; assistance with state
and local taxes; preparation of reports to comply with local tax authority
transfer pricing documentation requirements; and assistance with tax
audits.
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(4)
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All
Other Fees typically consist of fees for permitted non-audit products and
services provided.
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The Audit Committee has reviewed the
services provided by Lurie Besikof during the fiscal year ended December 31,
2009, and the amounts billed for such services. The Audit Committee has
discussed these services and fees with Lurie Besikof and Company management to
determine that they are appropriate under the rules and regulations concerning
auditor independence promulgated by the SEC to implement the Sarbanes-Oxley Act
of 2002, as well as under guidelines of the American Institute of Certified
Public Accountants. After consideration, the Audit Committee has
determined that the receipt of these fees by Lurie Besikof is compatible with
the provision of independent audit services.
Pre-Approval
Policy
The Audit Committee is responsible for
appointing, setting compensation for, and overseeing the work of our independent
registered public accounting firm. The Audit Committee has established a
policy for pre-approving the services provided by our independent registered
public accounting firm in accordance with the auditor independence rules of the
SEC. This policy requires the review and pre-approval by the Audit
Committee of all audit and permissible non-audit services provided by our
independent registered public accounting firm and an annual review of the
financial plan for audit fees.
To ensure that auditor independence is
maintained, the Audit Committee annually pre-approves the audit services to be
provided by our independent registered public accounting firm and the related
estimated fees for such services, as well as the nature and extent of specific
types of audit related, tax and other non-audit services to be provided by our
independent registered public accounting firm. As the need arises, other
specific permitted services are pre-approved on a case-by-case basis during the
year. The Audit Committee will not delegate to management the pre-approval
of services to be performed by our independent registered public accounting
firm. All services provided by our independent registered public
accounting firm in fiscal years ending December 31, 2009 and 2008 were approved
under our pre-approval policies by the Audit Committee and Board of Directors,
respectively.
ELECTION
OF FOUR DIRECTORS
(Proposal
Two)
Our Board of Directors presently
consists of four directors and one vacancy. Our current directors are John
Quandahl, Angel Donchev, Aldus Chapin II and James Mandel. If all
director-nominees are elected, the Board of Directors will again consist of four
directors—John Quandahl, Angel Donchev, Aldus Chapin II and Richard
Miller. Our directors are elected upon a majority of votes cast. If
elected or re-elected, each nominee has consented to serve as a director, to
hold office until the next annual meeting of shareholders, or until his
successor is elected and shall have qualified. If any director-nominee
should withdraw or otherwise become unavailable for reasons not presently known,
the proxies that would have otherwise been voted for that director-nominee may
be voted for a substitute director-nominee selected by the Board of
Directors. Under our Amended and Restated Bylaws, directors generally
serve for a term that expires at the next annual meeting of shareholders and the
election and qualification of a successor.
Set forth below is information
regarding the individuals nominated for election to the Board of
Directors. The information presented includes information each director
has given us about his age, all positions he holds within the Company, his
principal occupation and business experience for the past five years and the
names of other public reporting companies for which he currently serves as a
director or has served as a director during the past five years. In
addition to the information presented below regarding each nominee’s specific
experience, qualifications, attributes and skills that led our Board of
Directors to conclude that the nominee should serve as a director, we believe
that all of our director-nominees have a reputation for integrity, honesty and
adherence to high ethical standards. They each have demonstrated business
acumen and an ability to exercise sound judgment, as well as a commitment of
service to the enterprises they have previously served or are currently
serving.
Name
and Age
of
Director-
Nominee
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Principal
Occupation, Business Experience
for
the Past Five Years and Directorships in Public Companies
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Director
Since
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John
Quandahl
Age
43
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Mr.
Quandahl is the Company’s Chief Executive and Operating Officer and
interim Chief Financial Officer, currently also serves as the President of
Wyoming Financial Lenders, Inc., a position he has held since 2007.
From 2005 until joining Wyoming Financial Lenders, he was the President of
Houlton Enterprises, Inc., and prior to that served as that corporation’s
Chief Operating Officer from 1999 until 2004. Mr. Quandahl was the
controller as Silverstone Group, Inc., from 1993 until 1998, and before
that began his career at the Nebraska Department of Revenue as a tax
auditor in 1989. Mr. Quandahl is a certified public accountant
(inactive) and earned a degree in accounting from the University of
Nebraska - Lincoln.
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December
31, 2007
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Angel
Donchev
Age
28
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Mr.
Donchev is presently a director of the Company. Our Board of
Directors appointed Mr. Donchev as a director of the Company on March 31,
2010 in connection with the acquisition of voting control of the Company
by WCR, LLC. Mr. Donchev is employed by Blackstreet Capital
Management, LLC, a Delaware limited liability company principally engaged
in the management of private investments. Mr. Donchev joined
Blackstreet Capital Management in 2004 and currently serves as a director
of American Combustion Industries, Flow Dry Technology, Inc., and Swift
Spinning, Inc. (all of which are private companies). Mr.
Donchev has been invloved in control buyouts of companies with combined
revenues in excess of $300 million over the past five years.
Previously, Mr. Donchev worked as a generalist in the Corporate Finance
division of Stephens Inc., a middle market investment bank, where he
gained experience in a variety of M&A and public offering
transactions. Prior to that, Mr. Donchev worked for Teton Capital,
an Austin, Texas based hedge fund, where he provided research and analysis
on potential investments. Mr. Donchev graduated summa cum laude from
the McCombs School of Business at the University of Texas at Austin, where
he received a BBA in Business Honors and Finance.
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March
31, 2010
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Aldus
Chapin II
Age
47
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Mr.
Chapin is presently a director of the Company. Our Board of
Directors appointed Mr. Chapin as a director of the Company on March 31,
2010 in connection with the acquisition of voting control of the Company
by WCR, LLC. Mr. Chapin is a Managing Director at Blackstreet
Capital Management, LLC, a Delaware limited liability company principally
engaged in the management of private investments, where he leads
restructuring and operations for all Blackstreet portfolio
companies. Mr. Chapin has worked in private equity for 11 years and
has a background in operations and finance. Prior to joining
Blackstreet Capital Management in 2004, Mr. Chapin led operations for New
York based retailer Dean & DeLuca, as well as the Manhattan
restaurants for bakery chain Au Bon Pain. Mr. Chapin was the
Managing Director for Lipton Financial Services, a $100 million New York
based hedge fund focused on the franchise and specialty retail
sectors. In addition, Mr. Chapin was the Managing Director for BV
Ventures, UK, LTD, a London based equity fund where he acquired,
restructured and divested a number of companies in the food service
sector. Mr. Chapin has served as Executive Chairman and Interim-CEO
in a number of complex restructuring efforts for Blackstreet Capital
Management and currently serves as Chairman of Rauch Industries, Inc.,
American Combustion Industries, Inc., and FTCA, Inc., as well as a member
of the Board of Directors of Swift Spinning, Inc., Flow Dry Technology,
Inc., Agora Marketing Solutions, Inc., Scrubs AC, Inc., and Pennysaver,
Inc. (all of which are private companies).
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March
31, 2010
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Richard
Miller
Age
63
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Mr.
Richard Miller is a nominee to our Board of Directors. Mr. Miller is
an independent business consultant. Previously, Mr. Miller was CEO
of Pirelli Tire North America, a $120 million tire manufacturer, and CEO
of Dunn Tire Corporation, a $25 million regional tire retailer.
Prior experience also includes senior operating positions with Dunlop Tire
and Michelin Tire. Mr. Miller has served as Executive Chairman of
True Home Value, Inc., and currently serves as Chairman of Flow Dry
Industries and Swift Spinning, Inc.
―
two
private companies to which Blackstreet Capital Management, LLC provides
management and advisory services. Mr. Miller is a highly decorated
former Marine Captain and holds a BA from Chapman College in
California.
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n/a
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As
indicated above, our other current director, James Mandel, is not nominated for
election at the Annual Meeting.
When
considering whether directors and nominees have the experience, qualifications,
attributes and skills to enable the Board of Directors to satisfy its oversight
responsibilities effectively in light of the Company’s business and structure,
the Board of Directors focuses primarily on the information discussed in each of
the directors’ individual biographies set forth above. With regard to Mr.
Quandahl, the Board of Directors considered his significant experience,
expertise and background with regard to accounting, financial and tax matters,
his particular experience with the payday lending industry as well as retail
operations, and his demonstrated experience and skills in managing and
evaluating the coordination and integration of the Company’s two principal
operating segments. With regard to Mr. Donchev, the Board of Directors
considered his background and experience with the public securities markets and
his former employment and experience with the investment banking field.
With regard to Mr. Chapin, the Board of Directors considered his extensive
background in retail, from an operating, restructuring and financial and
investment perspective. With regard to Mr. Miller, the Board of Directors
considered his leadership experience as well as his background and experience in
retail operations.
CORPORATE
GOVERNANCE
Board
of Directors and Committees
Our Board of Directors is presently
comprised of four directors. There is also an existing vacancy on the
Board of Directors.
The Board of Directors has
traditionally had a Chairman of the Board position, the principal role of which
is to set rules for and run meetings of the Board of Directors. However,
with the March 31, 2010 resignation of Robert Moberly, our Board of Directors
presently has no appointed Chairman of the Board. In the past, the Board
of Directors has separated the Chairman of the Board function from that of our
Chief Executive Officer, John Quandahl, who is our principal executive officer
and also serves as a director of the Company, with the belief that separating
these functions will result in increased oversight by the Board of Directors
over management activities. In the event that all director-nominees are
elected at the Annual Meeting, the Board of Directors is expected to consider
whether having a director other than Mr. Quandahl, and whether having an
independent director, serve as Chairman of the Board is in the best interest of
the Company at this time. In such a case, it would be expected that Mr.
Richard Miller would be appointed as Chairman of the Board or some similar
office. In any event, it is important to understand that no single
leadership model is right for all companies and at all times, however, so the
Board of Directors may conduct a periodic evaluation of its leadership structure
in order to determine whether it and any of its committees are functioning
effectively and recognizes that, depending on the circumstances, other
leadership models might be appropriate.
The standing committees of the Board of
Directors during 2009 were:
Committee
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Membership
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Audit
Committee
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James
Mandel (Chair) and Mark Houlton
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Compensation
Committee
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Mark
Houlton (Chair) and James
Mandel
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Effective March 31, 2010, Mark Houlton
resigned his position on the Board of Directors in connection with acquisition
of voting control of the Company by WCR, LLC. Accordingly, Mr. Mandel is
presently the only director formally appointed to the Audit and Compensation
Committees.
The Audit Committee held four meetings
during fiscal 2009. The duties and activities of the Audit Committee are
described in the Audit Committee Report on page 12. The Board of Directors
has determined that each Audit Committee member is financially literate and has
determined that James Mandel is an “audit committee financial expert” who is
“independent” as such term is defined in Section 5605(a)(2) of the Nasdaq
listing rules, and also meets the criteria for independence set forth in Rule
10A-3(b)(1) under the Securities Exchange Act of 1934. This disclosure
respecting director independence is required under applicable SEC rules.
However, as a corporation whose shares are listed for trading on the
Over-the-Counter Bulletin Board (OTCBB), we are not required to have any
independent directors at all on our Board of Directors, or any independent
directors serving on any particular committees of the Board of Directors.
As noted elsewhere in this Proxy Statement, Mr. Mandel is not a nominee for
election to the Board of Directors at the Annual Meeting. At this time,
the Board of Directors has not affirmatively determined who, if anyone, would
qualify as an “audit committee financial expert” if Mr. Mandel’s term as a
director were to cease.
The Audit Committee operates under a
written charter adopted by the Board of Directors. You may obtain a copy
of the Audit Committee charter without charge by writing us and requesting a
copy, attention: John Quandahl, 11550 “I” Street, Omaha, Nebraska 68137.
You may also request a copy by calling us at (402) 551-8888. The Audit
Committee charter reflects the Audit Committee’s primary responsibilities,
including: (i) serving as an independent and objective party to monitor the
Company’s financial reporting process and internal control system; (ii)
reviewing and appraising the audit performed by the Company’s independent
registered public accounting firm; and (iii) providing an open avenue of
communication among the independent registered public accounting firm, financial
and senior management and the Board of Directors. The charter also
requires that the Audit Committee review and pre-approve the performance of all
audit and non-audit accounting services to be performed by the Company’s
independent registered public accounting firm, as well as tax work performed by
the Company’s tax firm, other than certain
de minimis
exceptions
permitted by Section 202 of the Sarbanes-Oxley Act of 2002. A copy of the
Audit Committee charter is attached to this Proxy Statement as
Appendix A
.
The
Compensation Committee is responsible for matters relating to compensation of
senior management and directors and for the adoption and administration of
employee compensation and benefit plans. As indicated above, Mr. Mandel is
“independent” as defined under the Nasdaq listing rules, and under Rule
10A-3(b)(1) under the Securities Exchange Act of 1934. The Compensation
Committee held no meetings during fiscal 2009. As noted elsewhere in this
Proxy Statement, Mr. Mandel is not a nominee for election to the Board of
Directors at the Annual Meeting.
The Compensation Committee operates
under a written charter adopted by the Board of Directors. You may obtain
a copy of the Compensation Committee charter without charge by writing us and
requesting a copy, attention: John Quandahl, 11550 “I” Street, Omaha, Nebraska
68137. You may also request a copy by calling us at (402) 551-8888. The
Compensation Committee charter sets forth the Compensation Committee’s primary
responsibilities, including: (i) all matters relating to compensation of
executive management and directors; (ii) the adoption of all employee
compensation and benefit plans and the administration of all such plans,
including granting of stock incentives or other benefits; and (iii) the review
and approval of disclosures regarding executive compensation included in the
Company’s annual meeting proxy statement or annual report. The
Compensation Committee reviews the Company’s remuneration policies and
practices, makes recommendations to the full Board of Directors in connection
with all compensation matters affecting the Company and administers the
Company’s incentive compensation plans. A copy of the Compensation
Committee charter is attached to this Proxy Statement as
Appendix B
.
The Company does not have a standing
nominating or governance committee. Instead, the entire Board of Directors
generally shares the responsibility of identifying potential director-nominees
to serve on the Board of Directors.
The Board of Directors held six
meetings during 2009 and took action in writing on five occasions. During
2009, each director attended at least 75% of the meetings of the Board of
Directors and meetings of committees to which they belong.
Director
Nomination Process
As indicated above, the Company does
not have a standing nominating committee (or other committee performing similar
functions). Instead, the full Board of Directors generally participates in
the consideration of all director-nominees. The full Board of Directors
does not employ any charter or other form of official written policy or
guidelines for the purpose of considering director-nominees. Nevertheless,
when considering director-nominees, the Board of Directors recruits and
considers candidates without regard to race, color, religion, sex, ancestry,
national origin or disability. Generally, the Board of Directors will
consider each candidate’s business and industry experience, his or her ability
to act on behalf of shareholders, overall Board diversity in terms of skill sets
and experiences, potential concerns regarding independence or conflicts of
interest and other factors relevant in evaluating director-nominees. The
Board of Directors will also consider a candidate’s personal attributes,
including without limitation personal integrity, loyalty to the Company and
concern for its success and welfare, willingness to apply sound and independent
business judgment, awareness of a director’s vital role in the Company’s good
corporate citizenship and image, time available for meetings and consultation on
Company matters, and willingness to assume broad, fiduciary
responsibility.
Our shareholders may recommend
candidates to the Board of Directors to be considered for election at our annual
shareholder meeting. Any shareholder wishing to recommend a director
candidate for consideration by the Board of Directors must follow the procedures
set forth in our Amended and Restated Bylaws. Under those bylaws, a
shareholder must submit the recommendation in writing to our principal executive
offices, in care of the Company’s Secretary (or another Company officer), not
less than 60 nor more than 90 calendar days prior to the mailing date of the
previous year’s annual meeting proxy statement. For recommendations
applicable to the 2011 annual shareholder meeting, such written recommendations
must be received by February 20, 2011. To enable our Board of Directors to
evaluate a candidate’s qualifications, shareholder recommendations must include
the following information:
|
·
|
the
name and address of the nominating shareholder and the director
candidate
|
|
·
|
a
representation that the nominating shareholder is a holder of record of
the Company’s capital stock entitled to vote at the current year’s annual
meeting
|
|
·
|
a
representation that such nominating shareholder intends to appear in
person or by proxy at the current year’s annual meeting to nominate the
director candidate
|
|
·
|
the
class and number of shares of the Company’s capital stock owned by the
nominating shareholder and the director
candidate
|
|
·
|
such
other information regarding each nominee proposed by such shareholder as
would have been required to be included in a proxy statement filed
pursuant to the proxy rules of the SEC had each nominee been nominated by
the Board of Directors, and
|
|
·
|
the
consent of each nominee to serve as a director of the Company, if
elected.
|
The Board of Directors appointed
Messrs. Donchev and Chapin to serve as directors in connection with the March
31, 2010 purchase by WCR, LLC of a controlling interest in the Company from
WERCS. The appointments were made by a majority of the remaining directors
after the successive resignations of Messrs. Moberly and Houlton were
tendered.
Family
Relationships
The Board of Directors has
affirmatively determined that there are no familial relationships among any of
our officers or directors.
Director
Independence
The
Board of Directors periodically reviews relationships that directors have with
the Company to determine whether the directors are independent. Directors
are considered “independent” as long as they do not accept any consulting,
advisory or other compensatory fee (other than director fees) from the
Corporation, are not an affiliated person of the Company or its subsidiaries
(e.g., an officer or a greater-than-ten-percent shareholder) and are independent
within the meaning of applicable laws, regulations and the Nasdaq listing
rules. In this latter regard, the Board of Directors uses the Nasdaq
listing rules (specifically, Section 5605(a)(2) of such rules) as a benchmark
for determining which, if any, of its directors are independent, solely in order
to comply with applicable SEC disclosure rules. However, this is for
disclosure purposes only. It should be understood that, as a corporation
whose shares are only listed for trading on the Over-the-Counter Bulletin Board
(OTCBB), the Company is not required to have any independent directors at all on
its Board of Directors, or any independent directors serving on any particular
committees of the Board of Directors.
The
Board of Directors has determined that, of its current directors, only Mr.
Mandel is independent within the meaning of the Nasdaq listing rule cited
above. In the case of Mr. Quandahl, his position as an executive officer
of the Company precludes him from being considered independent. In the
case of both Messrs. Donchev and Chapin, their employment with Blackstreet
Capital Management, LLC (a provider of management and advisory services to other
entities, including the entity having beneficial ownership over the shares of
Company capital stock owned by WCR, LLC, the controlling shareholder of the
Company), has led the Board of Directors to conclude that they are not
independent. During fiscal 2009, the Company’s other directors were Robert
Moberly and Mark Houlton. The Board of Directors has determined that
neither such person was independent within the meaning of the Nasdaq listing
rules.
Applicable SEC rules require the
Company to disclose whether members of the committees of our Board of Directors
are “independent,” as that term is defined and described above. In this
regard, only Mr. Mandel, who serves on both the Audit Committee and the
Compensation Committee, is an independent director.
If the Company had its shares listed
for trading on the Nasdaq Stock Market, the composition of its Board of
Directors would not meet the Nasdaq requirement that a majority of its directors
be independent, and would not have met such requirement at any time during
fiscal 2009. Similarly, the composition of the committees of our Board of
Directors at all times during fiscal 2009 would not have met the Nasdaq
requirements for either independence or minimum number of directors. The
foregoing is for disclosure purposes only. The Company’s shares are only
listed for trading on the OTCBB, and as such the Company is not required to have
any independent directors at all on its Board of Directors, or any independent
directors serving on any particular committees of the Board of
Directors.
The Board of Directors believes that,
if elected, Mr. Richard Miller would not meet the definition of an “independent
director” under the Nasdaq listing rules cited above solely because of the fact
that he provides consulting services to, and serves on the board of directors
of, two other corporations to which Blackstreet Capital Management, LLC provides
management and advisory services.
Board
Role in Risk Oversight
The Board of Directors is actively
involved in oversight of risks inherent in the operation of the Company’s
businesses. In connection with its reviews of the operations of the
Company’s business segments and corporate functions, the Board of Directors
addresses the primary risks associated with those segments and functions.
The Board of Directors reviews the key risks periodically throughout the year as
part of its consideration of the strategic direction of the
Company.
The Board of Directors has delegated to
the Audit Committee, through the Audit Committee charter, oversight of certain
of the Company’s risk management process. For example, among its duties,
the Audit Committee reviews with management (i) the Company’s system of
disclosure controls and system of internal controls over financial reporting,
and (ii) the Company’s compliance with legal and regulatory requirements.
In this regard, the Audit Committee oversees risks related to the Company’s
financial statements, the financial reporting process, other financial matters,
certain compliance issues and accounting and legal matters. The Audit Committee
and the full Board of Directors is also responsible for reviewing certain major
legislative and regulatory developments that could materially impact the
Company’s contingent liabilities and risks.
In performing the functions of risk
oversight and management, both the Board of Directors and each committee thereof
has full access to management, as well as the ability to engage advisors, and
each committee reports back to the full Board of Directors as
appropriate.
Public
Availability of Documents
We have
adopted a Code of Ethics governing the conduct of our officers, directors and
employees in order to promote honesty, integrity, loyalty and the accuracy of
our financial statements. You may obtain a copy of the Code of Ethics
without charge by writing us and requesting a copy, attention: John
Quandahl, 11550 “I” Street, Omaha, Nebraska 68137. You may also request a copy
by calling us at (402) 551-8888. If our Board of Directors grants any
waivers of, or amendments to, the Code of Ethics to any of our directors or
executive officers, we will disclose these matters as required under applicable
SEC rules.
Our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments
thereto, are available on the Internet at the SEC website at
www.sec.gov
promptly
after they have been filed with the SEC.
Litigation
On March 26, 2010, the Company and all
of the persons then serving on its Board of Directors (Mr. John Quandahl, James
Mandel, Robert Moberly and Mark Houlton), among others, were sued by Steven
Staehr and David Stueve, both of whom are former members of our
management. In that lawsuit, the plaintiffs have alleged, among other
things, that our Board of Directors has breached certain of their fiduciary
duties primarily in connection with the sale by WERCS of its capital stock in
the Company to WCR, LLC. We believe the lawsuit is entirely
meritless. While we are unable to predict the ultimate outcome of these
claims and proceedings, management believes there is not a reasonable
possibility that the costs and liabilities of such matters, individually or in
the aggregate, will have a material adverse effect on our financial condition or
results of operations.
AUDIT
COMMITTEE REPORT
The
primary purpose of the Audit Committee is to assist the Board of Directors in
fulfilling its oversight responsibilities relating to accounting, reporting
practices and the quality and integrity of the financial reports and other
publicly disseminated financial information of the Company. In this
context, the Audit Committee has met with management (including the Chief
Executive Officer and interim Chief Financial Officer, the Senior Accounting
Director, and the head of internal audit for the Company) and Lurie Besikof
Lapidus & Company, LLP, the Company’s independent registered public
accounting firm (“Independent Auditors”).
The
Audit Committee held meetings with the Company’s internal auditor and
Independent Auditors, both in the presence of management and privately, to
discuss the overall scope and plans for their respective audits, the results of
their examinations, the evaluations of the Company’s internal controls, the
overall quality of the Company’s financial reports, the reasonableness of
significant judgments and the clarity of disclosures in the financial
statements.
The
Audit Committee has reviewed and discussed the audited consolidated financial
statements with management and the Independent Auditors. The Audit Committee
also discussed with the Independent Auditors the matters required by Statement
on Auditing Standards No. 114 (The Auditor’s Communication With Those Charged
With Governance), other standards of the Public Company Accounting Oversight
Board (United States), rules of the SEC and other applicable
regulations.
With
respect to independence, the Audit Committee has received the written
disclosures from the Independent Auditors required under Rule 3526 of the Public
Company Accounting Oversight Board (Communications with Audit Committees
Concerning Independence) and has discussed with the Independent Auditors their
independence.
Based
upon the reviews and discussions referred to above, the Audit Committee
recommended to the Board of Directors, and the Board of Directors has approved,
(i) the selection of the Independent Auditors for the 2010 fiscal year and (ii)
the inclusion of the audited financial statements in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2009 for filing with the
SEC.
Submitted
by the Audit Committee:
|
|
JAMES
MANDEL
|
EXECUTIVE
COMPENSATION
Summary
Compensation Table
The following table sets forth the cash
and non-cash compensation for awarded to or earned by: (i) each
individual who served as the principal executive officer and principal financial
officer of Western Capital during the year ended December 31, 2009; and (ii)
each other individual that served as an executive officer of either Western
Capital or Wyoming Financial Lenders, Inc. at the conclusion of the year ended
December 31, 2009 and who received more than $100,000 in the form of salary and
bonus during such fiscal year. For purposes of this Proxy Statement, these
individuals are collectively referred to as our “named executive
officers.”
Name and Principal Position
|
|
|
|
Salary
|
|
|
Other Annual
Compensation
|
|
|
Stock Option
Awards
|
|
|
Total
|
|
John
Quandahl
(1)
|
|
2009
|
|
$
|
246,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
246,000
|
|
Pres.
and Chief Operating Officer
|
|
2008
|
|
$
|
246,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
246,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rich
Horner
(2)
|
|
2009
|
|
$
|
136,000
|
|
|
$
|
35,558
|
|
|
$
|
0
|
|
|
$
|
171,558
|
|
Vice
President of Wyoming
|
|
2008
|
|
$
|
131,682
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
131,682
|
|
Financial
Lenders, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Mr.
Quandahl is the Chief Executive and Chief Operating Officer, and President
and interim Chief Financial Officer, of the Company. Prior to
January 1, 2009, Mr. Quandahl was the Company’s Chief Operating Officer,
and did not hold any other Company office. Mr. Quandahl is also the
President and Chief Operating Officer of Wyoming Financial Lenders, Inc.,
our wholly owned and principal operating subsidiary that offers payday
lending services, which position he has held since January 1,
2008.
|
(2)
|
Mr.
Horner is the Vice President of Wyoming Financial Lenders,
Inc.
|
Outstanding
Equity Awards at Fiscal Year End
We had no
outstanding equity awards as of December 31, 2009 for any named executive
officers.
Employment
Agreement
On March
31, 2010, we entered into an Employment Agreement with Mr. Quandahl to serve as
our Chief Executive Officer and Chief Operating Officer. Prior to that
time, Mr. Quandahl served in such capacities without any written
agreement. Under the new Employment Agreement, Mr. Quandahl will receive
an annual base salary equal to $246,000 (which is the same salary Mr. Quandahl
has received during the prior two years without any written agreement), and
eligibility for an annual performance-based cash bonus.
The
performance-based bonus provisions of the Employment Agreement permit Mr.
Quandahl to receive annual bonus payments based on EBITDA targets annually
established by the Board of Directors. The Employment Agreement sets the
2010 EBITDA target at $4 million. If the Company’s actual EBITDA
performance for a particular annual period ranges from 85-100% of the
established EBITDA target, Mr. Quandahl will be entitled to receive a cash bonus
based on his share of a bonus pool consisting of 7.5% of the actual
EBITDA. In this regard, Mr. Quandahl’s share of the bonus pool for any
particular year is expected to be 10-50%; and the remaining bonus pool will be
payable to other management-level participants in the bonus pool selected from
time to time by the Board of Directors. If the Company’s actual EBITDA
performance for a particular annual period is less than 85% of the established
EBITDA target, no bonus will be payable; and if such performance exceeds 100% of
the established EBITDA target, the bonus pool participants will receive their
proportionate share of 15% of the amount by which such performance exceeds the
target.
The
Employment Agreement contains customary provisions prohibiting Mr. Quandahl from
soliciting customers and employees of the Company for three years after any
termination of his employment with the Company, and from competing with the
Company for either three years (if Mr. Quandahl is terminated for good cause or
if he resigns without good reason) or two years (if the Company terminates Mr.
Quandahl’s employment for without good cause or if he resigns with good
reason). If Mr. Quandahl’s employment is terminated by the Company without
“good cause” or if Mr. Quandahl voluntarily resigns with “good reason,” then Mr.
Quandahl will be entitled to (i) severance pay for a period of 12 months and
(ii) reimbursement for health insurance premiums for his family if he elects
continued coverage under COBRA.
Director
Compensation
Currently, our directors receive no
compensation pursuant to any standard arrangement for their services as
directors. Nevertheless, we may in the future determine to provide our
directors with some form of compensation, either cash or options or
contractually restricted securities.
Securities
Authorized for Issuance
Under
Equity Compensation Plans
The table
below sets forth certain information, as of the close of business on December
31, 2009, regarding equity compensation plans (including individual compensation
arrangements) under which securities of the Company were then authorized for
issuance.
|
|
Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options, Warrants
and Rights
|
|
Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights
|
|
|
Number of Securities
Remaining Available
for Issuance Under
Equity Compensation
Plans (excluding
securities reflected in
column a)
|
|
|
|
(a)
|
|
(b)
|
|
|
(c)
|
|
Equity
compensation plans approved by securityholders
|
|
None
|
|
|
n/a
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
Equity
compensation plans not approved by securityholders
|
|
None
|
|
|
n/a
|
|
|
|
2,000,000
|
(1)
|
(1)
|
In
January 2008, the Board of Directors adopted our 2008 Stock Incentive
Plan, which permits the issuance of various incentives, including options
or similar rights, to purchase or acquire up to 2,000,000 shares of common
stock. As of the date of this filing, no incentives have been issued
under such plan. Furthermore, we are not required by applicable
state law or the listing standards of any self-regulatory agency (e.g.,
the OTC Bulletin Board, NASD, AMEX or NYSE) to obtain the approval of our
security holders prior to issuing any such compensatory options, warrants
or other rights to purchase securities of the
Company.
|
PRINCIPAL
HOLDERS THEREOF
Security
Ownership of Certain Beneficial Owners and Management
The
following table sets forth certain information regarding beneficial ownership of
the voting securities as of the close of business on April 16, 2010 (the record
date) based on a total of 7,446,007 shares of common stock and 10,000,000 shares
of preferred stock outstanding as of that date by (i) each person known by us to
be the beneficial owner of more than five percent of our outstanding common
stock or more than five percent of our outstanding preferred stock, (ii) each
director and nominee for election as a director of the Company, (iii) each named
executive officer of the Company, and (iv) all current executive officers
and directors as a group.
Unless
otherwise indicated, each person or entity named in the table has sole voting
power and investment power (or shares that power with that person’s spouse) with
respect to all shares of the Company’s capital stock listed as owned by that
person or entity. Unless otherwise indicated, the address of each of the
following persons is 11550 “I” Street, Suite 150, Omaha, Nebraska
68137.
Name and Address
|
|
Common Shares
Beneficially Owned
(1)
|
|
|
Percentage of
Common Shares
(1)
|
|
James
Mandel
(2)
|
|
|
58,640
|
|
|
|
*
|
|
John
Quandahl
(3)
|
|
|
0
|
|
|
|
*
|
|
Rich
Horner
(4)
|
|
|
100,000
|
|
|
|
*
|
|
Angel
Donchev
(5)
|
|
|
0
|
|
|
|
*
|
|
Aldus
Chapin II
(6)
|
|
|
0
|
|
|
|
*
|
|
All
current executive officers and directors as a group
(7)
|
|
|
158,640
|
|
|
|
*
|
|
WCR,
LLC
(8)
c/o
Blackstreet Capital Advisors II, LLC
5425
Wisconsin Avenue, Suite 701
Chevy
Chase, MD 20815
|
|
|
11,125,000
|
|
|
|
63.8
|
%
|
Blackstreet
Capital Advisors II, LLC
(9)
c/o
Blackstreet Capital Management, LLC
5425
Wisconsin Avenue, Suite 701
Chevy
Chase, MD 20815
|
|
|
11,125,000
|
|
|
|
63.8
|
%
|
Lantern
Advisers, LLC
(10)
80
South Eighth Street, Suite 900
Minneapolis,
MN 55402
|
|
|
520,963
|
|
|
|
6.9
|
%
|
Mill
City Ventures, LP
(11)
80
South Eighth Street, Suite 900
Minneapolis,
MN 55402
|
|
|
798,000
|
|
|
|
10.7
|
%
|
Joseph
A. Geraci, II
(12)
80
South Eighth Street, Suite 900
Minneapolis,
MN 55402
|
|
|
798,000
|
|
|
|
10.7
|
%
|
Steven
Staehr
(13)
7778
Barbican Ct.
Las
Vegas, NV 89147
|
|
|
966,667
|
|
|
|
12.9
|
%
|
Steve
Irlbeck
|
|
|
400,000
|
|
|
|
5.4
|
%
|
(1)
|
Beneficial
ownership is determined in accordance with the rules of the SEC, and
includes general voting power and/or investment power with respect to
securities. Shares of common stock issuable upon exercise of options
or warrants that are currently exercisable or exercisable within 60 days
of the record rate, and shares of common stock issuable upon conversion of
other securities currently convertible or convertible within 60 days, are
deemed outstanding for computing the beneficial ownership percentage of
the person holding such securities but are not deemed outstanding for
computing the beneficial ownership percentage of any other person.
Under the applicable SEC rules, each person’s beneficial ownership is
calculated by dividing the total number of shares with respect to which
they possess beneficial ownership by the total number of outstanding
shares of the Company. In any case where an individual has
beneficial ownership over securities that are not outstanding, but are
issuable upon the exercise of options or warrants or similar rights within
the next 60 days, that same number of shares is added to the denominator
in the calculation described above. Because the calculation of each
person’s beneficial ownership set forth in the “Percentage of Common
Shares” column of the table may include shares that are not presently
outstanding, the sum total of the percentages set forth in such column may
exceed 100%.
|
(2)
|
Mr.
Mandel is a director of the Company. 479 of these shares are
registered in Mr. Mandel’s name. The remaining 58,161 shares are
held by Multiband Corporation (a Minnesota corporation), of which Mr.
Mandel is the Chief Executive Officer and by virtue of which position Mr.
Mandel has beneficial ownership.
|
(3)
|
Mr.
Quandahl is a director of the Company and the Company’s Chief Executive
Officer, President, Chief Operating Officer and interim Chief Financial
Officer.
|
(4)
|
Mr.
Horner is the Vice President of Wyoming Financial Lenders,
Inc.
|
(5)
|
Mr.
Donchev became a director of the Company on March 31,
2010.
|
(6)
|
Mr.
Chapin became a director of the Company on March 31,
2010.
|
(7)
|
Consists
of Messrs. Mandel, Quandahl, Donchev, Chapin and
Horner.
|
(8)
|
Consists
of 1,125,000 shares of common stock and 10,000,000 shares of Series A
Convertible Preferred Stock which are convertible into an equal number of
shares of common stock. Investment and voting control over the
shares held by WCR, LLC is exercised by Blackstreet Capital Advisors II,
LLC. See fn 9 below. Share figures contained in the table are
taken from an April 12, 2010 filing with the SEC on Schedule
13D.
|
(9)
|
Blackstreet
Capital Advisors II, LLC possesses beneficial ownership of securities held
by WCR, LLC. See fn 8 above. Share figures contained in the
table are taken from an April 12, 2010 filing with the SEC on Schedule
13D.
|
(10)
|
Lantern
Advisers, LLC is a Minnesota limited liability company owned equally by
Messrs. Douglas Polinsky and Joseph A. Geraci, II. As to shares of
Western Capital, only Mr. Polinsky possesses investment and voting
control. As a consequence, Mr. Geraci disclaims beneficial ownership
of any shares held by Lantern Advisers. Share figures contained in
the table are taken from Lantern Advisers’ February 16, 2010 filing with
the SEC on Schedule 13G/A.
|
(11)
|
Mill
City Ventures, LP is a Minnesota limited partnership, the securities of
which are beneficially held by Mill City Advisers LLC, a Minnesota limited
liability company that serves as the general partner to Mill City
Ventures, LP. Mr. Joseph A. Geraci, II, the sole member and manager
of Mill City Advisors, LLC, holds investment and voting control over the
shares beneficially owned by Mill City Ventures, LP. Share figures
contained in the table are taken from Mill City Ventures’ February 17,
2009 filing with the SEC on Schedule 13G/A after taking into account an
April 2, 2010 filing with the SEC on Form 4 made by Mr.
Geraci.
|
(12)
|
Joseph
A. Geraci, II, possesses beneficial ownership of securities held by Mill
City Ventures, LP. See fn 11 above. Mr. Geraci disclaims
beneficial ownership of any beneficial ownership of shares of Western
Capital held by Lantern Advisers, LLC. See fn 10
above.
|
(13)
|
Share
figures reflected in the table are based on a January 10, 2008 Schedule
13/G filing with the SEC, which is the Company’s best available
information relating to Mr. Staehr’s ownership of Company
stock.
|
(14)
|
Mr.
Irlbeck became the Company’s Senior Director of Accounting in January
2009.
|
Change
in Control
Effective March 31, 2010, WCR, LLC, a
Delaware limited liability company, purchased 1,125,000 shares of common stock
and 10,000,000 shares of Series A Convertible Preferred Stock from WERCS, a
Wyoming corporation. The purchase was effected pursuant to
a Stock Purchase and Sale Agreement by and between WERCS and WCR,
LLC, dated as of February 23, 2010. Since the 10,000,000 shares of Series
A Convertible Preferred Stock vote on an as-converted (presently one-for-one)
basis with shares of the Company’s common stock, the purchase and sale
transaction effected a change in the voting control of the Company, with WCR,
LLC possessing approximately 63.8% of the voting power of the Company’s
shareholders. WCR, LLC purchased the common and preferred shares for
aggregate consideration (prior to any post-closing adjustments contemplated by
the Stock Purchase and Sale Agreement) of approximately $4,781,581. WCR,
LLC paid for the shares in cash obtained from various private sources affiliated
with Blackstreet Capital Partners II. In connection with the transaction,
certain directors of the Company resigned, in series, from their positions on
the Board of Directors, after John Quandahl, a director of the Company, agreed
to appoint the two designees of WCR, LLC to fill the vacancies created by such
resignations.
CERTAIN
RELATIONSHIPS AND TRANSACTIONS
Transactions
with Related Persons
On April 2, 2010, Wyoming Financial
Lenders, Inc., the wholly owned payday lending operating subsidiary of the
Company, refinanced its outstanding credit facility. On that date, WERCS,
a Wyoming corporation and the former holder of all of the Company’s Series A
Convertible Preferred Stock, satisfied all of Wyoming Financial Lenders’
financial obligations then owing to Banco Popular North America and entered into
a Business Loan Agreement and associated $2,000,000 promissory note with Wyoming
Financial Lenders. The loan from WERCS extinguished the $1,637,341 that
Wyoming Financial Lenders then owed to Banco Popular, with the remaining
$362,659 being eligible for use as general working capital.
The Business Loan Agreement with WERCS
and associated promissory note contained terms that were substantially similar
to those contained in the original loan documents with Banco Popular. To
secure the obligations of Wyoming Financial Lenders under the new Business Loan
Agreement and promissory note and to induce WERCS to provide the loan, the
Company entered into (i) a Commercial Pledge Agreement with WERCS pursuant to
which the Company pledged its share ownership in Wyoming Financial Lenders, and
(ii) a Commercial Security Agreement pursuant to which the Company granted WERCS
a security interest in substantially all of the Company’s assets. The
Company also entered into a Commercial Guaranty relating to the repayment of
Wyoming Financial Lenders’ obligations under the Business Loan Agreement and
promissory note.
The payment terms under the promissory
note require Wyoming Financial Lenders to make monthly payments of accrued
interest only for 11 months, followed by an April 1, 2011 balloon payment of any
remaining accrued but unpaid interest and all $2,000,000 of principal under the
promissory note. Interest accrues on the unpaid principal balance of the
promissory note at the rate of 12.0% per annum.
Important
Note
: The description herein regarding the Business Loan
Agreement with WERCS and associated documents is provided solely in the interest
of full disclosure. The transaction with WERCS was not a transaction with
a “related person” under applicable SEC rules, and so is not required to be
reported hereunder.
On March 31, 2010, the Company
delivered amended and restated promissory notes to Messrs. Mark Houlton and John
Quandahl. These promissory notes amended and restated earlier promissory
notes delivered to such individuals in connection with their sale of PQH
Wireless, Inc. capital stock to the Company. PQH Wireless is the Company’s
operating subsidiary engaged in the retail sale of Cricket wireless phones and
accessories. The Company’s purchase of PQH Wireless was earlier approved
by the disinterested members of the Company’s Audit Committee and consummated in
October 2008. The Company delivered the amended and restated promissory
notes due to the fact that Messrs. Houlton and Quandahl had voluntarily agreed
to not require interest payments to be made under the notes as earlier
contemplated. Accordingly, the amended and restated promissory notes
reflect the going-forward schedule for repayment of the indebtedness evidenced
by the notes, but are otherwise substantially identical to the earlier
promissory notes delivered in connection with the PQH Wireless
acquisition.
Review
and Approval of Related-Party Transactions
The Audit Committee of the Board of
Directors is generally charged with reviewing and approving all reportable
transactions of the Company with “related persons,” as that term is defined in
Item 404(a) of Regulation S-K promulgated by the SEC under the Securities Act of
1933. In the event that any related person is also a member of the
committee, such committee member shall not participate in the review and
approval of the subject transaction, but may provide the remaining members of
the committee with information relating to the financial or other interest that
such related person has in a proposed transaction. Other than the
foregoing, the Company has not adopted any specific procedures or policies,
written or otherwise, pertaining to the review and approval of related-party
transactions.
Since the beginning of fiscal 2009, the
policy of having the Audit Committee review and approve related-party
transactions was not applied to the Company’s borrowing transaction with WERCS
(described above) since, at the time of that transaction, WERCS was no longer a
related party to the Company. The policy was similarly not applied to the
review and approval of the amended and restated promissory notes in favor of
Messrs. Quandahl and Houlton (also described above) since (i) at the time of
that transaction, Mr. Houlton was no longer a related party to the Company, and
(ii) in the case of Mr. Quandahl, the delivery of the original promissory note
had earlier been approved by the Audit Committee in connection with the
acquisition of PQH Wireless and the amendment and restatement did not involve a
departure from the earlier approved amount of indebtedness, rate of interest
thereon, or any other material terms of the original
transaction.
SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities
Exchange Act of 1934, as amended, requires the Company’s officers, directors and
persons who own more than ten percent of any registered class of the Company’s
equity securities, to file reports of ownership and changes in ownership with
the SEC. Officers, directors and greater-than-ten-percent beneficial
owners are required by SEC regulations to furnish the Company with copies of all
Section 16(a) forms they file.
Based solely on review of the copies of
the Forms 3, 4 and 5 (and amendments thereto) that we received or are aware of
with respect to transactions during fiscal 2009, we believe that the Company’s
officers, directors and greater-than-ten-percent beneficial owners complied with
all applicable Section 16(a) filing requirements for fiscal year 2009 except for
a Form 4 filed by Mr. Christopher Larson on January 20, 2009 that was originally
due on January 2, 2010.
2011
SHAREHOLDER PROPOSALS AND
DISCRETIONARY
PROXY VOTING AUTHORITY
Any
shareholder desiring to submit a proposal for action by the shareholders at the
next annual shareholders’ meeting, which will be the 2011 annual meeting, must
submit that proposal in writing to an officer of the Company at the Company’s
corporate headquarters no later than February 20, 2011 to have the proposal
included in the Company’s proxy statement for that meeting. Notices of
shareholder proposals for action must comply with the informational and other
requirements set forth in our Amended and Restated Bylaws as well as applicable
statutes and regulations. Due to the complexity of the respective rights
of shareholders and the Company in this area, any shareholder desiring to
propose such an action is advised to consult with his or her legal counsel with
respect to such rights. The Company suggests that any such proposal be
submitted by certified mail, return-receipt requested.
Rule
14a-4(c) promulgated under the Securities Exchange Act of 1934, as amended,
governs the Company’s use of its discretionary proxy voting authority with
respect to a shareholder proposal that the shareholder has not sought to include
in the Company’s proxy statement. Rule 14a-4(c) provides that if a
proponent of a proposal fails to notify the Company at least 45 days prior to
the month and day of mailing of the prior year’s proxy statement, management
proxies will be allowed to use their discretionary voting authority when the
proposal is raised at the meeting, without any discussion of the
matter.
With
respect to the Company’s 2011 annual meeting, if the Company is not provided
notice of a shareholder proposal, which the shareholder has not previously
sought to include in the Company’s proxy statement, by March 7, 2011, the
management proxies will be allowed to use their discretionary authority as
outlined above.
If the
presiding officer at any annual meeting of shareholders determines that a
shareholder proposal or director nomination was not submitted in compliance with
the advance notice provisions of our Amended and Restated Bylaws, the proposal
or nomination will be ruled out of order and not acted upon.
The
above information is only a summary of some of the requirements of the advance
notice provisions of our Amended and Restated Bylaws. If you would like to
receive a copy of the provisions of our Amended and Restated Bylaws setting
forth all of these requirements, you should write to our Chief Executive Officer
at our headquarters address.
PROXY
SOLICITATION
The Company will bear the cost of
preparing, assembling and mailing the proxy, Proxy Statement, Annual Report and
other material which may be sent to the shareholders in connection with this
solicitation. Brokerage houses and other custodians, nominees and
fiduciaries may be requested to forward soliciting material to the beneficial
owners of stock, in which case they may be reimbursed by the Company for their
expenses in doing so. Proxies may be solicited personally, by telephone,
telegram, special letter, mail or via the Internet.
The Board of Directors does not intend
to present to the meeting any other matter not referred to above and does not
presently know of any matters that may be presented to the meeting by
others. If, however, other matters come before the meeting, it is the
intent of the persons named in the enclosed proxy to vote the proxy in
accordance with their best judgment.
ABILITY
OF SHAREHOLDERS AND OTHER INTERESTED PARTIES
TO
COMMUNICATE WITH OUR BOARD OF DIRECTORS
Our
Board of Directors has established several means for shareholders and other
interested parties to communicate with the Board of Directors. Concerns
regarding our financial statements, accounting practices or internal controls
should be submitted in writing to the Chairman of the Audit Committee at the
corporation’s headquarters address. If the concern relates to our
governance practices, business ethics or corporate conduct, the concern should
be submitted in writing to the Chairman of the Board, or another director of the
Company, at the corporation’s headquarters address. If a shareholder or
other interested parties are unsure as to which category the concern relates,
the concern may be communicated to any of our directors at the corporation’s
headquarters address. All communications will be sent to the applicable
director(s).
We attempt to schedule our annual
meeting of shareholders concurrently with a regularly scheduled Board of
Directors meeting, and for such reason we generally expect our directors to
attend the Annual Meeting. Our last annual meeting of shareholders was
held in May 2007. At that annual meeting, our entire Board of Directors
attended the meeting.
By
Order of the Board of Directors,
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John
Quandahl
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Chief
Executive Officer
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PROXY
CARD
Western
Capital Resources, Inc.
Proxy
for Annual Meeting of Shareholders
The
Undersigned, a shareholder of Western Capital Resources, Inc., hereby appoints
Mr. John Quandahl as proxy, with full power of substitution, to vote on behalf
of the undersigned the number of shares which the undersigned is then entitled
to vote, at the annual shareholder meeting of Western Capital Resources, Inc. to
be held at the principal executive office of the Western Capital Resources, Inc.
at 11550 “I” Street, Suite 150, Omaha, Nebraska 68137, on May 7, 2010 at 8:30
a.m. local time, and at any and all adjournments thereof, with all the powers
which the undersigned would possess if personally present, upon the
following:
1.
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Proposal
to ratify the appointment of Lurie Besikof Lapidus & Company, LLP as
the independent registered public accounting firm of the Company for
fiscal 2010.
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FOR
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AGAINST
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ABSTAIN
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2.
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Proposal
to elect four directors to the Board of
Directors.
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FOR
ALL
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WITHHOLD
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FOR
ALL
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ALL
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EXCEPT
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(01)
John Quandahl
(02)
Angel Donchev
(03)
Aldus Chapin II
(04)
Richard Miller
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INSTRUCTION
: To
withhold authority
to
vote for any individual nominee(s),
write
the number(s) of that/those
nominee(s)
on the space provided below:
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3.
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Upon
such other business as may properly come before the meeting or any
adjournments thereof.
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The
Board of Directors makes no recommendation regarding any of the proposals set
forth above
(Continued,
and TO BE COMPLETED AND SIGNED, on the reverse side)
(Continued
from other side)
The
undersigned hereby revokes all previous proxies relating to the shares covered
hereby and acknowledges receipt of the Notice and Proxy Statement relating to
the Annual Meeting of Shareholders.
THIS PROXY IS SOLICITED ON BEHALF OF
THE BOARD OF DIRECTORS.
When properly executed, this proxy will be
voted on the proposals set forth herein as directed by the shareholder, but if
no direction is made in the space provided, this proxy will be voted at the sole
discretion of the proxy holder.
Dated _______________________,
2010
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x_____________________________
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x_____________________________
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(Shareholder
must sign exactly as the name appears at left above. When signed as a
corporate officer, executor, administrator, trustee, guardian, etc., please
give
full title as
such. If shares are held by two or more persons as joint tenants, all
must sign.)
WESTERN
CAPITAL RESOURCES, INC.
AUDIT
COMMITTEE CHARTER
Purpose
The
management of Western Capital Resources, Inc., a Minnesota corporation (the
“Company”), is responsible for the preparation, presentation and integrity of
the Company’s financial statements. This process includes ensuring
that the financial statements are accurate, complete and stated in accordance
with generally accepted accounting principles. Although financial
reporting is the responsibility of management, it is overseen by the board of
directors. The Audit Committee (the “Committee”) of the board of
directors acts for the board of directors under this Charter.
Appointment, Qualifications
and Removal
The
Committee will consist of not less than three members of the board of directors,
all of whom are “independent” as that term is defined in Section 121 of the
American Stock Exchange Company Guide (the “AMEX Rules”) (or the equivalent
rules of another applicable self-regulatory organization), subject however to
the application of such rules or to any applicable exceptions to the requirement
under the AMEX Rules that all Committee members be
independent. Furthermore, each member of the Committee must be
“independent” as that term is defined in Rule 10A-3 under the Securities and
Exchange Act of 1934.
All
Committee members shall be able to read and understand fundamental financial
statements, including the Company’s balance sheet, income statement and cash
flow statement. No Committee member shall have participated in the
preparation of the financial statements of the Company at any time during the
last three years. The Committee shall endeavor to have, as one of its
members, an individual who qualifies as an “audit committee financial expert” as
established by the Securities and Exchange Commission (and any other applicable
rules or regulations). The existence of such audit committee financial expert,
including his or her name and whether or not he or she is independent, or the
lack of an audit committee financial expert, shall be disclosed in the Company’s
periodic filings with the Securities and Exchange Commission, as
required.
The
members and Chair of the Committee shall be appointed by the board of directors
and shall continue to act until their successors are appointed, but shall be
subject to removal at any time by a majority of the full board of
directors. Any vacancy resulting from removal or otherwise may be
filled by the appointment of the board of directors.
Statement of
Policy
The
Committee shall oversee the accounting and financial reporting processes and
internal control system of the Company and the audits of its financial
statements. The Committee shall also assist the board in fulfilling
the oversight responsibilities of the board of directors relating to the
accounting and financial processes of the Company. In so doing, it is
the responsibility of the Committee
to maintain free and
open communication between the Committee, independent auditors, and the internal
accounting staff and management of the Company. Finally, the
Committee shall review and independently approve all Company transactions with
“related persons” (as that term is defined in Item 404 of Regulation S-K
promulgated by the Securities and Exchange Commission).
Powers
To assist
the Committee in fulfilling its duties, management shall provide the Committee
with information and recommendations as needed and
requested. Moreover, the Committee
is empowered to
investigate any matter brought to its attention with full access to all books,
records, facilities, and personnel of the Company. At its discretion,
the Committee shall have access to the Company’s general counsel, if any,
outside legal counsel, accounting, audit and other advisors, if it deems such
access to be necessary or beneficial. The Committee shall also have
the power to retain other outside advisors if, in its judgment, such action is
appropriate. The Committee has the sole authority to retain and
terminate any advisors, including sole authority to approve the fees and other
terms for their retention and engagement. All costs incurred by the
Committee with respect to the use of advisors shall be paid by the
Company.
Duties and
Responsibilities
The
Committee will oversee the Company’s financial reporting processes and internal
control system on behalf of the board of directors. Management is
responsible for preparing the Company’s financial statements, and the
independent auditing firm of the Company, which will be a registered public
accounting firm selected by the Committee, shall be responsible for auditing
those financial statements. The Committee shall be directly
responsible for appointment, compensation, retention
and oversight of the
work of the registered public accounting firm engaged by the Company
(including resolution of disagreements between management and the auditor
regarding financial reporting) for the purpose of preparing or issuing an audit
report or related work, and such firm shall report directly to the
Committee.
The
Committee should take the appropriate actions to set the overall corporate tone
for quality financial reporting and ethical behavior. The Committee
shall adopt procedures for (i) the receipt, retention, and treatment of
complaints received by the Company regarding accounting, internal accounting
controls or auditing matters; and (ii) the confidential, anonymous submission by
employees of the Company of concerns regarding questionable accounting or
auditing matters.
It is
expected that the Committee will be the diligent administrator of the financial
reporting process and ensure the Company’s adherence to its internal financial
controls. Because of this responsibility, it is the expectation of
the board of directors that the Committee meet four times annually, and on at
least a quarterly basis in connection with the preparation and filing of the
Company’s periodic reports under the Securities and Exchange Act of 1934, with
additional meetings taking place by teleconference if deemed necessary by the
Chair or a majority of the members of the Committee.
The
Committee will independently review and approve all transactions of the Company
with related persons. In the event that any related person is also a
member of the Committee, such Committee member shall not participate in the
review and approval of the subject transaction, but may provide the remaining
members of the Committee with information relating to the financial or other
interest that such related person has in a proposed transaction.
Recurring
Processes
The
following shall be the principal recurring processes of the Committee in
carrying out its oversight responsibilities. The Committee, in
carrying out its responsibilities, believes its policies and procedures should
remain flexible in order to best react to changing conditions and
circumstances. The processes are set forth as a guide, with the
understanding that the Committee may supplement them as
appropriate.
Independent
Auditors
. The Committee shall have the sole authority and
responsibility to engage, terminate and replace the independent
auditors. The Committee shall discuss with the auditors their
independence from management and the Company and the matters included in the
written disclosures required by the Independence Standards Board. The
Committee shall discuss with the independent auditors the overall scope and
plans for its audit, including the adequacy of staffing and
compensation. Annually, the Committee shall advise the board of its
selection of the Company’s independent auditors. The Committee shall
meet separately with the independent auditors, with and without management
present, to discuss the results of their examination.
Internal
Controls
. The Committee shall discuss with management and the
accounting staff the adequacy and effectiveness of the accounting and financial
controls, and the integrity and reliability of the Company’s financial
reporting, including the effectiveness of internal control systems and
information technology. The Committee shall discuss with management
any significant deficiencies in internal controls that have been identified by
the Chief Executive Officer or Chief Financial Officer which could adversely
affect the Company’s ability to record, process, summarize or report financial
data, and shall also review from time to time the issue whether the Company
needs an internal audit function.
Interim Statements and
Issues
. Following review of the interim financial statements
by the independent auditors prior to the filing of the Company’s Quarterly
Report on Form 10-Q, or its earnings release for the fourth fiscal quarter, the
Committee shall discuss the results of the quarterly review with and without
management present. The Committee shall be available to discuss any
other matters required to be communicated to the Committee by the independent
auditors under generally accepted auditing standards.
Audited
Statements
. The Committee shall review with management and the
independent auditors the financial statements to be included in the Company’s
Annual Report on Form 10-K, including their judgment about the quality, not just
acceptability, of accounting principles, the reasonableness of significant
judgments, and the clarity of the disclosures in the financial
statements. Also, the Committee shall discuss the results of the
annual audit and any other matters required to be communicated to the Committee
by the independent auditors under generally accepted auditing
standards. The Committee shall make a recommendation to the Board
regarding inclusion in the Annual Report of the audited financial
statements.
Non-Audit Related
Services
. The Committee shall approve, in advance, the
provision by the independent auditor of all services not related to the audit
(other than with respect to de minimis exceptions permitted by the
Sarbanes-Oxley Act of 2002). The Committee delegates to the Chair of
the Committee the authority to grant such approvals. Any services
begun by inadvertence without prior approval will be approved as required by the
Sarbanes-Oxley Act of 2002.
Other
Matters
. In addition, the Committee will all have the
following responsibilities:
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Ensure
that the lead audit partner and the reviewing audit partner are rotated
every five years
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Ensure
that the Committee received from the independent auditors all written
disclosures and letters required by the Independence Standards Board
Standard 1, which detail all relations between the independent auditors
and the Company
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Ensure
that the Company has or will disclose this Charter in an appendix to the
Company’s annual proxy statement (or annual report) at least once every
three years (or as otherwise required by applicable
regulations)
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Prepare
the Committee report, as required by Securities and Exchange Commission
rules, to be included in the Company’s annual proxy statement (or annual
report)
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Specifically
review the Company’s disclosures pertaining to transactions with related
persons, as set forth in current or periodic reports (or the Company’s
annual or special meeting proxy statement) of the Company that are to be
filed with the Securities and Exchange
Commission
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Receive
a disclosure from the Chief Executive Officer and Chief Financial Officer
during their certification process for the Quarterly and Annual Reports
regarding (1) any significant deficiency and material weaknesses in design
or operation of internal controls and (2) any fraud whether or not
material, involving management or other employees who have a significant
role in the Company’s internal
controls
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Establish
hiring policies for employees or former employees of the independent
auditor to ensure independence has not been
compromised
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Evaluate,
on an annual basis, its own performance as a
Committee
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Perform
such other services and functions consistent with this Charter, the
Company’s articles of incorporation or bylaws, or required by applicable
law, as the Committee or the board of directors deems necessary or
appropriate, and
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Review
and reassess the adequacy of this Charter and recommend to the board of
directors any proposed changes to this
Charter.
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This
Charter was originally adopted effective February 2, 2008, and was amended by
action of the board of directors effective July 28, 2008.
WESTERN
CAPITAL RESOURCES, INC.
COMPENSATION
COMMITTEE CHARTER
Purpose
The
Compensation Committee (the “Committee”) of WESTERN CAPITAL
RESOURCES, Inc., a Minnesota corporation (the “Company”), is
charged with oversight responsibility for the adequacy and effectiveness of the
Company’s executive compensation and benefit plans. The Committee is
responsible for (i) all matters relating to compensation of executive
management and directors, (ii) the adoption of all employee compensation and
benefit plans and the administration of all such plans, including granting of
stock incentives or other benefits, and (iii) the review and approval of
disclosures regarding executive compensation included in the Company’s annual
meeting proxy statement (or annual report), as described herein.
Appointment, Qualifications
and Removal
The
Committee will consist of not less than three members of the board of directors,
all of whom are “independent” as that term is defined in Section 121 of the
American Stock Exchange Company Guide (the “AMEX Rules”) (or the equivalent
rules of another applicable self-regulatory organization), subject however to
the application of such rules or any applicable exceptions under the AMEX
Rules. Nevertheless, so long as the Company is subject to the AMEX
Rules, when fewer than all members of the Committee are independent, at least
two Committee members shall be “independent” (as defined above) and otherwise
free of any relationship that, in the opinion of the board of directors, would
interfere with their exercise of independent judgment as a member of the
Committee. Furthermore, all members of the Committee must qualify as
“non-employee directors” for purposes of Rule 16b-3 under the Securities
Exchange Act of 1934 and as “outside directors” for purposes of Section 162(m)
of the Internal Revenue Code. Experience with executive compensation
is relevant (though not absolutely required) in selecting candidates for the
Committee.
The
members and Chair of the Committee shall be appointed by the board of directors
and shall continue to act until their successors are appointed, but shall be
subject to removal at any time by a majority of the full board of
directors. Any vacancy resulting from removal or otherwise may be
filled by the appointment of the board of directors. In no case shall
a member of the Company’s executive management serving on the Committee
participate in deliberations and vote on matters relating to such executive’s
compensation.
Powers
To assist
the Committee in fulfilling its duties, management shall provide the Committee
with information and recommendations as needed and requested. At its
discretion, the Committee shall have access to the Company’s general counsel, if
any, outside legal counsel and outside compensation consultants, if it deems
such access to be necessary or beneficial. The Committee shall also
have the power to retain other outside advisors if, in its judgment, such action
is appropriate. The Committee has the sole authority to retain and
terminate any advisors and consultants, including sole authority to approve the
fees and other terms for their retention and engagement. All costs
incurred by the Committee with respect to the use of outside counsel, advisors
and consultants shall be paid by the Company.
Meetings and
Subcommittees
The
Committee shall meet at such times as are determined by the Chair of the
Committee. A majority of the members of the Committee shall
constitute a quorum for the transaction of business. The Committee
may delegate one or more of its functions to subcommittees established from time
to time by the Committee, but the Committee shall remain responsible for any
function delegated to a subcommittee.
Duties and
Responsibilities
On an
annual basis, the Committee shall:
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Review
market data to assess the Company’s competitive position with respect to
executive compensation
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Approve
base salaries, annual incentive awards and long-term incentive awards for
the Chief Executive Officer (CEO) and all other executive
officers. In determining the long-term incentive component of
CEO compensation, the Committee shall consider, at a minimum, the CEO’s
performance, the Company’s performance and relative shareholder return,
the value of similar incentive awards granted to CEOs at comparable
companies and the awards granted to the Company’s CEO in past years, as
well as such other factors as the Committee shall deem
appropriate
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Establish
achievement of performance objectives for Internal Revenue Code Section
162(m) purposes
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Determine
“eligible persons” for participation in the Company’s stock incentive
plans, and approve participants, types of awards and number of shares
covered by each award, except to the extent specifically provided in the
plan for awards to employees who are not officers of the Company; and
approve all decisions regarding the modifications of terms or conditions
of any award or award agreement
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Establish
director compensation, including retainers, meetings fees, stock options
and other components of compensation of directors, the Chairman of the
Board and members and chairs of the committees of the board of
directors
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Conduct
a performance evaluation of the
Committee
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Review
and discuss with management the Company’s specific disclosures regarding
executive compensation to be included in the Company’s annual meeting
proxy statement (or annual report, as applicable), including a Committee
report (to the extent required) that complies with the rules and
regulations of the Securities and Exchange Commission and, when required,
the disclosures in the “Compensation Discussion and Analysis,” and
recommend to the board of directors inclusion of any such “Compensation
Discussion and Analysis” or other appropriate disclosures in such proxy
statement or annual report, and
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Review
and reassess the adequacy of this Charter and recommend to the board of
directors any proposed changes to this
Charter.
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On a
periodic basis, the Committee shall:
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Review
and evaluate the Company’s philosophy, goals and objectives with respect
to the compensation of executive officers and employees
generally
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Review
and approve compensatory plans, agreements and arrangements applicable to
the Company’s executive officers, including but not limited to employment,
severance and change-in-control
agreements
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To
the extent deemed necessary by the Committee, develop and recommend to the
board of directors for approval new broad-based incentive compensation and
benefit programs, including equity-based compensation programs, and
recommend the amendment or termination of existing programs as
appropriate
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Monitor,
review and, to the extent deemed necessary by the Committee, develop new
compensation plans and programs for directors,
and
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To
the extent requested by the board of directors, oversee the administration
of the Company’s defined-benefit and defined-contribution plans, if
any. When appropriate, recommend to the board of directors new
plans, major plan amendments and plan
terminations.
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In
carrying out its duties and responsibilities under this Charter, the Committee’s
policies and procedures shall remain flexible in order to better react to
changing circumstances, and to assure the board of directors and shareholders
that the executive compensation practices of the Company are in accordance with
all legal requirements and are of the highest quality. In the event
that the AMEX Rules do not apply to the Company, the full Board of Directors may
discharge any duties and responsibilities of the Committee under this
Charter.
Reporting
The
Committee shall, through its Chair, provide reports of the Committee’s meetings
and actions to the board of directors. Such reports shall contain
recommendations for action of the board of directors when required under the
provisions of any compensation or benefit plan or any applicable regulation or
when otherwise deemed appropriate by the Committee and permitted under this
Charter.
Western Capital Resources (CE) (USOTC:WCRS)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Western Capital Resources (CE) (USOTC:WCRS)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024