þ
|
Preliminary
Proxy Statement
|
o
|
Confidential,
For Use of the Commission Only (As Permitted by Rule
14a-6(e)(2))
|
o
|
Definitive
Proxy Statement
|
o
|
Definitive
Additional Materials
|
o
|
Soliciting
Material under §240.14a-12
|
þ
|
No
fee required
|
o
|
Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11
.
|
|
(1)
|
Title
of each class of securities to which transaction
applies:
|
|
(2)
|
Aggregate
number of securities to which transaction
applies:
|
|
(3)
|
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):
|
|
(4)
|
Proposed
maximum aggregate value of
transaction:
|
|
(5)
|
Total
fee paid:
|
o
|
Fee
paid previously with preliminary
materials.
|
o
|
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.
|
|
(1)
|
Amount
Previously Paid:
|
|
(2)
|
Form,
Schedule or Registration Statement
No.:
|
|
(3)
|
Filing
Party:
|
|
(4)
|
Date
Filed:
|
Important
Notice Regarding the Availability of Proxy Materials
for
the Annual Meeting of Stockholders to Be Held on April 21,
2010
|
The
Notice of Annual Meeting, Proxy Statement
and
Annual Report on Form 10-K are available at:
[http://www.____________]
|
Barnsley,
UK
|
By
Order of the Board of Directors,
|
|
March
[__], 2010
|
||
MICHAEL
JAMIESON
|
||
Interim
Chief Executive Officer
|
PROXY
STATEMENT FOR 2010 ANNUAL MEETING OF STOCKHOLDERS
|
1
|
Information
Concerning the Proxy Materials and the Annual Meeting
|
1
|
Voting
Procedures and Vote Required
|
2
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
3
|
Information
about the Change in Control of Aftersoft
|
6
|
ELECTION
OF DIRECTORS (Proposal No. 1)
|
7
|
CORPORATE
GOVERNANCE
|
10
|
Board
of Directors
|
10
|
Director
Independence
|
10
|
Board
Meetings and Attendance
|
10
|
Annual
Meeting Attendance
|
10
|
Stockholder
Communications with the Board
|
10
|
Board
Committees
|
10
|
Family
Relationships
|
12
|
Involvement
in Certain Legal Proceedings
|
12
|
DIRECTOR
COMPENSATION FOR FISCAL 2009
|
12
|
INFORMATION
ABOUT OUR EXECUTIVE OFFICERS
|
13
|
EXECUTIVE
COMPENSATION
|
14
|
Compensation
Discussion and Analysis
|
14
|
Compensation
Committee Report
|
20
|
Summary
Compensation Table for Fiscal Years 2009, 2008 and 2007
|
21
|
Employment
Agreements with Executive Officers
|
22
|
Other
Compensation
|
22
|
Outstanding
Equity Awards at 2009 Fiscal Year End
|
22
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE
|
24
|
COMPLIANCE
WITH SECTION 16(a) OF THE EXCHANGE ACT
|
28
|
RATIFICATION
OF APPOINTMENT OF INDEPENDENT AUDITORS (Proposal No.
2)
|
29
|
APPROVAL
OF NAME CHANGE (Proposal No. 3)
|
31
|
AUDIT
COMMITTEE REPORT
|
32
|
STOCKHOLDER
PROPOSALS FOR 2011 ANNUAL MEETING
|
33
|
EXPENSES
AND SOLICITATION
|
33
|
OTHER
BUSINESS
|
33
|
ADDITIONAL
INFORMATION
|
33
|
Name and address of beneficial owner
|
|
Amount and Nature of
Beneficial Ownership
|
|
|
Percent of class of
Common Stock (1)
|
|
||
Wynnefield
Persons (2)
c/o
Wynnefield Capital Inc.
450
Seventh Ave., Suite 509
New
York, NY 10123
|
12,537,896
|
(3)
|
14.38
|
%
|
||||
Quillen
Persons (4)
145
East 57th Street, 10th Floor
New
York, NY 10022
|
6,960,112
|
(5)
|
8.24
|
%
|
||||
ComVest
Capital LLC
105
S. Narcissus Ave.
West
Palm Beach, FL 33401
|
10,169,949
|
(6)
|
10.79
|
%
|
||||
Directors
and Officers:
|
||||||||
Michael
Jamieson
Interim
Chief Executive Officer
|
1,240,000
|
(7)
|
1.48
|
%
|
||||
Charles
F. Trapp
Chief
Financial Officer
|
1,048,571
|
(8)
|
1.25
|
%
|
||||
Frederick
Wasserman,
Director
|
169,305
|
(9)
|
0.20
|
%
|
||||
Dwight
B. Mamanteo,
Director
|
568,419
|
(10)
|
0.68
|
%
|
||||
Marcus
Wohlrab,
Director
|
122,396
|
(11)
|
0.15
|
%
|
||||
Gerald
M. Czarnecki,
Chairman
|
968,044
|
(12)
|
1.15
|
%
|
||||
W.
Austin Lewis IV (13)
c/o
Lewis Asset Management Corp.
45
Rockefeller Plaza
New
York, NY 10111
|
16,536,398
|
(14)
|
18.28
|
%
|
||||
Directors
and Officers as a group (7 persons)
|
20,653,133
|
22.80
|
%
|
|||||
Former
Officers and Directors:
|
||||||||
Ian
Warwick
Chief
Executive Officer
and
Chairman
|
4,561,452
|
5.43
|
%
|
|||||
Simon
Chadwick
Chief
Operating Officer
|
1,961,084
|
2.33
|
%
|
(1)
|
Based
on a total of 84,042,708 shares of Common Stock outstanding. In accordance
with Securities and Exchange Commission rules, each person’s percentage
interest is calculated by dividing the number of shares that person owns
by the sum of (a) the total number of shares outstanding as of February
26, 2010 plus (b) the number of shares such person has the right to
acquire within sixty (60) days of February 26,
2010.
|
(2)
|
Comprised
of Wynnefield Partners Small Cap Value, LP (“Wynnefield Partners”) and
Wynnefield Partners Small Cap Value LP I (“Wynnefield Partners I”), and
the general partner of each of these entities, Wynnefield Capital
Management, LLC (“Wynnefield LLC”); Wynnefield Small Cap Value Offshore
Fund Ltd. (“Wynnefield Offshore”) and its investment manager, Wynnefield
Capital, Inc. (“Wynnefield Capital”); Wynnefield Capital, Inc. Profit
Sharing & Money Purchase Plan (the “Plan”); Channel Partnership II, LP
(“Channel”); Nelson Obus, who serves as principal and co-managing member
of Wynnefield Capital Management, LLC, principal executive officer of
Wynnefield Capital, Inc. and general partner of Channel Partnership II,
LP; and Joshua H. Landes, who serves as principal and co-managing
member of Wynnefield Capital Management, LLC and executive officer of
Wynnefield Capital, Inc. (collectively, the “Wynnefield Persons”). Dwight
Mamanteo, one of the Company’s directors, is an investment analyst with
Wynnefield Capital. Mr. Mamanteo exercises neither voting nor dispositive
control over the shares beneficially owned by Wynnefield Capital. The
Company has been informed that Nelson Obus and Joshua H. Landes share
voting and investment control over the shares beneficially owned by
Wynnefield Partners, Wynnefield Partners I, Wynnefield Offshore,
Wynnefield LLC, Wynnefield Capital and the Plan, and that Nelson Obus
exercises sole voting and investment control over the shares beneficially
owned by Channel. Based upon information provided in a
Schedule 13D/A filed with the SEC on April 3, 2009 and a Form 4 filed on
May 22, 2009.
|
(3)
|
Represents
an aggregate 9,412,894 shares of common stock and 3,125,002 shares
issuable upon exercise of warrants which are currently exercisable at
$1.00 per share and expire July 2, 2013, which are beneficially owned as
follows: (i) 2,451,015 shares of common stock and 833,334 shares issuable
upon exercise of warrants are beneficially owned by Wynnefield Partners;
(ii) 3,065,485 shares of common stock and 833,334 shares issuable upon
exercise of warrants are beneficially owned by Wynnefield Partners I;
(iii) 2,860,963 shares of common stock and 833,334 shares issuable upon
exercise of warrants are beneficially owned by Wynnefield Offshore; (iv)
410,431 shares of common stock beneficially owned by the Wynnefield
Capital, Inc. Profit Sharing & Money Purchase Plan; and (v) 625,000
shares of common stock and 625,000 shares issuable upon exercise of
warrants are beneficially owned by Channel. Based upon
information provided in a Form 4 filed with the SEC on May 22,
2009.
|
(4)
|
Comprised
of Little Wing, L.P. (“Little Wing”); Quilcap Corp., the general partner
of Little Wing (“Quilcap Corp.”); Tradewinds Fund, Ltd. (“Tradewinds”);
Quilcap Management, LLC, the investment manager of Little Wing and
Tradewinds (“Quilcap Management”); and Parker Quillen, the President of
Quilcap Corp. and the Sole Managing Member of Quilcap Management
(collectively, the “Quillen Persons”). Based upon information
provided in a Schedule 13G/A filed with the SEC on February 13,
2009.
|
(5)
|
Represents
(i) 5,976,508 shares of common stock and 357,292 shares of common stock
issuable upon exercise of warrants, which are currently exercisable at
$1.00 per share and expire July 2, 2013, owned by Little Wing, with
respect to which Little Wing has the power to vote and dispose, which
power may be exercised by Mr. Quillen, as President of Quilcap Corp and as
Sole Managing Member of Quilcap Management; and (ii) 540,879 shares
of common stock and 59,375 shares of common stock issuable upon
exercise of warrants, which are currently exercisable at $1.00 per share
and expire July 2, 2013, owned by Tradewinds, with respect to which
Tradewinds has the power to vote and dispose, which power may be exercised
by Mr. Quillen, as the Sole Managing Member of Quilcap Management; and
(iii) 26,058 shares of common stock with respect to which Mr. Quillen has
sole voting and dispositive power. Based upon information
provided in a Schedule 13G/A filed with the SEC on February 13,
2009.
|
(6)
|
Includes
the following shares owned by ComVest Capital LLC: (i) 1,000,000 shares
issuable upon exercise of warrants to purchase shares of Common Stock,
which are currently exercisable at $0.1097 per share and expire December
31, 2013; (ii) 2,083,333 shares issuable upon exercise of warrants to
purchase shares of Common Stock, which are currently exercisable at
$0.3595 per share and expire December 31, 2013; (iii) 2,000,000 shares
issuable upon exercise of warrants to purchase shares of Common Stock,
which are currently exercisable at $0.1097 per share and expire December
31, 2013, and (iv) 3,386,616 shares of common stock issuable upon
conversion of the $5,000,000 principal amount of that certain Convertible
Term Note dated December 21, 2007 issued to Comvest Capital LLC, at a
current conversion rate of $1.4764 per share. The Company has been
informed that Comvest Capital Advisors, LLC is the managing entity of
ComVest Capital, LLC, and that Gary Jaggard, managing director of Comvest
Capital, LLC, exercises voting and investment control over the shares
beneficially owned by ComVest Capital, LLC. Also includes 1,700,000 shares
issuable upon exercise of warrants owned by Commonwealth Associates, LP,
an entity affiliated with Comvest Capital, LLC. See “Certain Relationships
and Related Transactions and Director Independence” for additional
detail.
|
(7)
|
Includes
560,000 vested shares of an award of an aggregate of 1,000,000 restricted
shares of Common Stock granted by the Company on May 13, 2008 for services
previously rendered.
|
(8)
|
Includes
420,000 vested shares of an award of an aggregate 750,000 restricted
shares of Common Stock granted by the Company on May 13, 2008 for services
previously rendered.
|
(9)
|
Includes
(i) 14,000 vested shares of restricted Common Stock of an award for an
aggregate 25,000 shares of restricted Common Stock granted on May 13, 2008
by the Company for services previously rendered; (ii) 55,002 vested shares
of restricted Common Stock out of an award of an aggregate of 110,000
shares of restricted Common Stock granted on October 6, 2008; (iii) 34,091
vested shares of restricted Common Stock out of an award of an aggregate
of 204,545 shares of restricted Common Stock granted on July 1, 2009;
and (iv) 26,212 shares which will vest within 60 days of February 26,
2010.
|
(10)
|
Includes
(i) 14,000 vested shares of restricted Common Stock of an award for an
aggregate 25,000 shares of restricted Common Stock granted on May 13, 2008
by the Company for services previously rendered; and (ii) 36,836 vested
shares of restricted Common Stock (net of taxes) out of an award of an
aggregate of 104,000 shares of restricted Common Stock granted on October
6, 2008; (iii) 25,606 vested shares of restricted Common Stock (net of
taxes) out of an award of an aggregate of 236,364 shares of restricted
Common Stock granted on July 1, 2009; and (iv) 28,364 shares which will
vest within 60 days of February 26,
2010.
|
(11)
|
Includes
(i) 14,000 vested shares of restricted Common Stock of an award for an
aggregate 25,000 shares of restricted Common Stock granted on May 13, 2008
by the Company for services previously rendered; (ii) 52,002 vested shares
of restricted Common Stock out of an award of an aggregate of 104,000
shares of restricted Common Stock granted on October 6, 2008; (iii) 31,818
vested shares of restricted Common Stock (net of taxes) out of an award of
an aggregate of 190,909 shares of restricted Common Stock granted on July
1, 2009; and (iv) 24,576 shares which will vest within 60 days of February
26, 2010.
|
(12)
|
Includes
(i) 12,430 vested shares of restricted Common Stock (net of taxes) out of
an award for an aggregate 25,000 shares of restricted Common Stock granted
by the Company for joining the Board of Directors on October 6, 2008; (ii)
63,822 vested shares of restricted Common Stock (net of taxes) out of an
award of an aggregate of 140,000 shares of restricted Common Stock granted
on October 6, 2008; (iii) 34,470 vested shares of restricted Common Stock
(net of taxes) out of an award of an aggregate of 318,182 shares of
restricted Common Stock granted on July 1, 2009; and (iv) 39,571 shares
which will vest within 60 days of February 26,
2009.
|
(13)
|
W.
Austin Lewis IV is the portfolio manager and general partner of Lewis
Asset Management Corp., the investment manager of Lewis Opportunity Fund,
LP and LAM Opportunity Fund, LTD. Accordingly, Mr. Lewis is deemed to
be the beneficial owner of the shares owned by Lewis Opportunity Fund, LP
and LAM Opportunity Fund, LTD. and beneficially owned by Lewis Asset
Management Corp.
|
(14)
|
Represents
(i) 3,440,215 shares owned directly by W. Austin Lewis IV, (ii) 5,322,646
shares of common stock and 5,112,328 shares issuable upon exercise of
warrants, which are currently exercisable at $1.00 per share and expire
April 24, 2014, owned by Lewis Opportunity Fund, LP; (iii) 1,348,719
shares of common stock and 1,290,671 shares of common stock issuable upon
exercise of warrants, which are currently exercisable at $1.00 per share
and expire April 24, 2014, owned by LAM Opportunity Fund, LTD. (iv) 8,500
vested shares of restricted Common Stock out of an award of an aggregate
of 25,000 shares of restricted Common Stock granted on February 20, 2009;
(v) 23,601 vested shares of restricted Common Stock out of an award of an
aggregate 80,000 shares of restricted Common Stock granted on February 20,
2009; (vi) 30,303 vested shares of restricted Common Stock out of an award
of an aggregate of 181,818 shares of restricted Common Stock granted on
July 1, 2009; and (vii) 21,819 shares which will vest within 60 days of
February 26, 2010.
|
Name
of Director
|
Age
|
Director
since:
|
||
Michael
Jamieson
|
42
|
February
2010
|
||
Dwight
B. Mamanteo
|
40
|
March
2007
|
||
Marcus
Wohlrab
|
47
|
March
2007
|
||
Frederick
Wasserman
|
55
|
July
2007
|
||
Gerald
M. Czarnecki
|
70
|
August
2008
|
||
W.
Austin Lewis IV
|
34
|
January
2009
|
Compensation Committee
|
Audit Committee
|
Governance and Nomination
Committee
|
||
Dwight
B. Mamanteo
- Chair
|
Frederick
Wasserman** - Chair
|
Marcus
Wohlrab – Chair
|
||
Marcus
Wohlrab
|
Dwight
B. Mamanteo
|
Dwight
B. Mamanteo
|
||
W.
Austin Lewis IV
|
W.
Austin Lewis IV
|
Frederick
Wasserman
|
||
Gerald
M. Czarnecki -ex officio member
|
Gerald
M. Czarnecki -ex officio member
|
Gerald
M. Czarnecki -ex officio
member
|
Fees
Earned or
Paid in
Cash
($)
|
Stock
Awards
($)(1)
|
Options
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Nonqualified
Deferred
Compensation
Earnings
($)
|
All
Other
Compen-
sation
($)
|
Total
($)
|
||||||||||||||||||||||
Ian
Warwick
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Simon
Chadwick
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Dwight
B. Mamanteo
|
26,000 | (2) | 4,247 | (3) | — | — | — | — | 30,247 | |||||||||||||||||||
Marcus
Wohlrab
|
23,500 | 4,247 | (4) | — | — | — | — | 27,747 | ||||||||||||||||||||
Frederick
Wasserman
|
27,500 | 4,492 | (5) | — | — | — | — | 31,992 | ||||||||||||||||||||
Gerald
M. Czarnecki
|
35,000 | (6) | 8,480 | (7) | 43,380 | |||||||||||||||||||||||
W.
Austin Lewis IV
|
7,200 | (8) | 877 | (9) | 8,077 |
(1)
|
The
amount shown in the table reflects the dollar amount recognized for fiscal
2009 financial statement reporting purposes of the outstanding stock
awards held by the directors in accordance with FAS 123R. Refer to the
Company’s Consolidated Financial Statements for the Fiscal Years Ended
June 30, 2009 and 2008, Note 1 “Stock Based Compensation” and Note 10
“Stockholders Equity” included in the Company’s Annual Report on Form 10-K
for the fiscal year ended June 30, 2009, with respect to valuation
assumptions for this stock grant. The directors held no other stock or
option awards at June 30, 2009.
|
(2)
|
Includes
185,714 shares of Common Stock valued at market price on the date of
issuance, and received in lieu of $6,500 of cash
compensation.
|
(3)
|
Includes
25,569 shares valued at market price on the date of issuance, net of
income taxes of $728.
|
(4)
|
Includes
34,668 shares valued at market price on the date of
issuance.
|
(5)
|
Includes
36,668 shares valued at market price on the date of
issuance.
|
(6)
|
Includes
197,512 shares of Common Stock valued at market price on the date of
issuance, net of income taxes of $3,062, and received in lieu of $17,500
of cash compensation.
|
(7)
|
Includes
46,850 shares valued at market price on the date of issuance, net of
income taxes of $1,097.
|
(8)
|
Includes
102,857 shares of Common Stock valued at market price on date of issuance,
and received in lieu of $3,600 of cash
compensation.
|
(9)
|
Includes
10,267 shares valued at market price on the date of
issuance.
|
Name
|
Age
|
Position
|
||
Michael
Jamieson
|
42
|
Interim
Chief Executive Officer and Director
|
||
Charles
F. Trapp
|
60
|
Chief
Financial
Officer
|
Name and
Principal Position
|
Fiscal
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-
Equity
Incentive
Plan
Compensation
($)
|
Non-
qualified
Deferred
Compensation
Earnings
($)
|
All
Other
Compensation
($)
|
Total
($)
|
|||||||||||||
Ian
Warwick (1)
|
2009
|
292,828
|
—
|
—
|
—
|
—
|
—
|
—
|
292,828
|
|||||||||||||
Chief
Executive Officer,
|
2008
|
349,195
|
—
|
—
|
—
|
—
|
—
|
—
|
349,195
|
|||||||||||||
President
and Director
|
2007
|
350,682
|
—
|
—
|
—
|
—
|
—
|
—
|
350,682
|
|||||||||||||
Simon
Chadwick (2)
|
2009
|
218,780
|
—
|
—
|
—
|
—
|
—
|
—
|
218,780
|
|||||||||||||
Chief Operating Officer
|
2008
|
259,402
|
—
|
—
|
—
|
—
|
—
|
—
|
259,402
|
|||||||||||||
and
Director
|
2007
|
260,507
|
—
|
—
|
—
|
—
|
—
|
—
|
260,507
|
|||||||||||||
Charles
F. Trapp (3)
|
2009
|
224,166
|
5,775
|
(4)
|
229,941
|
|||||||||||||||||
Vice
President, Finance,
|
2008
|
214,583
|
—
|
25,500
|
(4)
|
—
|
—
|
—
|
—
|
240,083
|
||||||||||||
and
Chief Financial Officer
|
2007
|
N/A
|
N/A
|
(1)
|
Reflects
salary paid to Mr. Warwick for services rendered to us and our
subsidiaries during fiscal 2009, 2008 and 2007 as Aftersoft’s Chief
Executive Officer and President. Salary was paid in British pounds at an
annual salary of 175,000 GPB for each of the 2007 and 2008 fiscal years,
and for the period from July 1, 2008 to November 30, 2008 (or 72,916
GBP). Salary for the period from December 1, 2008 through June
30, 2009 was paid in US dollars at an annual base rate of $300,000 (or
$175,000 for the period), pursuant to the terms of Mr. Warwick’s
employment agreement. The amount shown for 2007 was translated
to US dollars based on a June 30, 2007 currency conversion rate of 1 GBP =
$2.0039. The amount shown for 2008 was translated to US dollars based on a
June 30, 2008 currency conversion rate of 1 GBP = $1.9954. The
portion of Mr. Warwick’s salary for fiscal 2009 which was paid in British
pounds (for the period from July 1, 2008 through November 30, 2008) was
translated to US dollars based on the June 30, 2009 currency
conversion rate of 1 GBP= $1.61593 (or $117,828). Mr. Warwick did not
receive any additional compensation for his services as a director on our
Board of Directors.
|
(2)
|
Reflects
salary paid to Mr. Chadwick for services rendered to us and our
subsidiaries during fiscal 2009, 2008 and 2007 as Aftersoft’s Chief
Operating Officer. Salary was paid in British pounds at an annual salary
of 130,000 GPB for each of the 2007 and 2008 fiscal years, and for the
period from July 1, 2008 to November 30, 2008 (or 54,167
GBP). Salary for the period from December 1, 2008 through June
30, 2009 was paid in US dollars at an annual base rate of $225,000 (or
$131,250 for the period), pursuant to the terms of Mr. Chadwick’s
employment agreement. The amount shown for 2007 was translated
to US dollars based on a June 30, 2007 currency conversion rate of 1 GBP =
$2.0039. The amount shown for 2008 was translated to US dollars based on a
June 30, 2008 currency conversion rate of 1 GBP = $1.9954. The
portion of Mr. Chadwick’s salary for fiscal 2009 which was paid in British
pounds (for the period from July 1, 2008 through November 30, 2008) was
translated to US dollars based on the June 30, 2009 currency conversion
rate of 1 GBP= $1.61593 (or $87,530). Mr. Chadwick did not receive any
additional compensation for his services as a director on our Board of
Directors.
|
(3)
|
Mr.
Trapp was appointed Vice President Finance and Chief Financial Officer
effective as of December 1, 2007.For the year ended June 30, 2009, the
amount shown in the table reflects salary in the amount of $95,833 earned
for services in these capacities between July 1, 2008 and November 30,
2008, as well as salary in the amount of $128,333 earned for services
between December 1, 2008 and June 30, 2009 pursuant to the terms of Mr.
Trapp’s employment agreement. The salary for fiscal 2009 also includes
$20,500 that was deferred and contributed by Mr. Trapp to the Company’s
plan established under section 401(k) of the Internal Revenue Code of
1986, as amended. For the year ended June 30, 2008, the amount
shown in the table reflects salary in the amount of $134,167 earned for
services between December 1, 2007 and June 30, 2008, as well as salary in
the amount of $80,416 earned for services as an accountant prior to his
appointment as an officer. The salary for fiscal 2008 also includes
$20,500 that was deferred and contributed by Mr. Trapp to the Company’s
plan established under section 401(k) of the Internal Revenue Code of
1986, as amended.
|
(4)
|
The
amount shown in the “Stock Awards” column reflects the dollar amount
recognized for fiscal 2009 and 2008 financial statement reporting purposes
of the outstanding stock awards held by Mr. Trapp in accordance with FAS
123R. Stock award represent an award on May 13, 2008 of 750,000 shares of
Common Stock with a grant date closing price of $0.10 per share, of which
34% or 255,000 shares vested immediately on the date of grant. The
remaining 66% of the shares or 495,000 shares will vest in three equal
installments of 165,000 shares on each of the first, second and third
anniversaries of the grant date. The shares were not issued pursuant to
any existing compensation plan. Refer to the Company’s Consolidated
Financial Statements for the Fiscal Years Ended June 30, 2008 and 2007,
Note 1 “Stock Based Compensation” and Note 10 “Stockholders Equity”
included in this Annual Report on Form 10-K, with respect to valuation
assumptions for this stock grant. Mr. Trapp held no other stock or option
awards at June 30, 2009 and 2008,
respectively.
|
Option Awards
|
Stock Awards
|
||||||||||||||||||||||||||||||||||
Name
|
Number of
Securities
Underlying
Unexercised
Options
(# Exercisable)
|
Number of
Securities
Underlying
Unexercised
Option
(# Unexercisable)
|
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options (#)
|
Option
Exercise
Price
($)
|
Option
Expiration
Date
|
Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)
|
Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units or
Other Rights
That Have
Not
Vested
(#)
|
Equity
Incentive
Plan Awards:
Market or
Payout
Value of
Unearned
Shares, Units
Or Other
Rights
That Have
Not
Vested
($)
|
||||||||||||||||||||||||||
Ian Warwick
|
|||||||||||||||||||||||||||||||||||
Simon
Chadwick
|
|||||||||||||||||||||||||||||||||||
Charles
F. Trapp
|
—
|
—
|
—
|
—
|
—
|
330,000
|
(1)
|
$
|
33,000
|
(2)
|
—
|
—
|
|||||||||||||||||||||||
Michael O’Driscoll
|
(1)
|
Stock
awards represent an award on May 13, 2008 to Mr. Trapp of 750,000 shares
of Common Stock with a grant date fair value of $0.10 per share, of which
34%, or 255,000 shares, vested immediately on the date of grant and
165,000 shares valued at $.035 per share vested on May 13, 2009. The
remaining 330,000 shares reflected in the table, will vest in two equal
installments of 165,000 shares, on each of the second and third
anniversaries of the grant date. The shares were not issued pursuant to
any existing compensation plan.
|
(2)
|
Based
on the closing price of $0.10 of the Company’s Common Stock on June 30,
2009.
|
For the Year Ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Audit
fees(1)
|
$
|
175,000
|
$
|
153,000
|
||||
Audit- related
fees(2)
|
56,400
|
79,000
|
||||||
Tax
fees(3)
|
11,900
|
–
|
||||||
All
other fees
|
–
|
–
|
||||||
Total
fees
|
$
|
243,300
|
$
|
232,000
|
(1)
|
Audit
fees are comprised of annual audit fees and quarterly review
fees.
|
(2)
|
Audit-related
fees for fiscal years 2009 and 2008 are comprised of consent fees and work
on registration statements and fees related to the restatements of the
fiscal 2007 quarterly reports that were filed in fiscal
2008.
|
(3)
|
Tax
fees are comprised of tax compliance, preparation and consultation
fees.
|
March
[__], 2010
|
By
Order of the Board of Directors,
|
|
|
||
MICHAEL
JAMIESON
|
||
Interim
Chief Executive Officer
|
THE
BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ALL PROPOSALS.
1. Election
of Directors
¨ FOR ALL
NOMINEES
¨ Michael
Jamieson
¨ Dwight B.
Mamanteo
¨ Marcus
Wohlrab
¨ Frederick
Wasserman
¨ Gerald M.
Czarnecki
¨ W. Austin
Lewis IV
¨ WITHHOLD
AUTHORITY
FOR ALL NOMINEES
¨ FOR
ALL EXCEPT
(See Instruction below)
_________________________________________________
INSTRUCTION:
To withhold authority to vote for any individual nominee(s), mark “FOR ALL
EXCEPT” and write the name of the nominee you wish to withhold authority
in the box below.
_________________________________________________
To
change the address on your account, please
check ¨
the
box at right and indicate your new address in the
space
above. Please note that changes to the registered
name(s)
on the account may be submitted via this method.
_________________________________________________
|
2. To
consider and act upon a proposal to ratify the Board’s selection of KMJ CORBIN & COMPANY LLP
as the Company’s independent auditors for the fiscal year ending
June 30, 2010.
¨ FOR
THE PROPOSAL
¨
AGAINST THE PROPOSAL
_________________________________________________
3. To
consider and act upon a proposal to amend the Company’s Certificate of
Incorporation to change the Company’s name to “MAM Software Group,
Inc.”
¨ FOR
THE PROPOSAL
¨ AGAINST
THE PROPOSAL
_________________________________________________
THIS
PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED AS DIRECTED. IF NO DIRECTION
IS MADE, THE PROXY SHALL BE VOTED FOR THE ELECTION OF THE
LISTED NOMINEES AS DIRECTORS, FOR THE RATIFICATION OF
KMJ CORBIN & COMPANY LLP AS THE COMPANY’S
INDEPENDENT AUDITORS FOR THE FISCAL YEAR ENDING JUNE 30, 2010, FOR THE CHANGE OF THE
COMPANY’S NAME TO “MAM SOFTWARE GROUP, INC.” AND, IN THE CASE OF OTHER
MATTERS THAT LEGALLY COME BEFORE THE MEETING, AS SAID ATTORNEY(S) MAY DEEM
ADVISABLE.
_________________________________________________
PLEASE
CHECK HERE IF YOU PLAN TO ATTEND THE ANNUAL MEETING OF STOCKHOLDERS ON
APRIL 21, 2010 AT 10:00 A.M. (EASTERN STANDARD TIME) AT THE OFFICES OF
O2MEDIA, INC., 2001 WEST SAMPLE ROAD, SUITE 101, POMPANO BEACH, FLORIDA
33064 ¨
|
Signature
of Stockholder _______________ Date: ________
|
Signature
of Stockholder _______________
Date:_________
|