Those of you who are beneficial owners and hold your shares of stock in street name with a broker, bank or other institution, where those shares are deposited with a depository institution (such as Depository Trust Company or DTC), are not considered the shareholders of record. In that case, you may not receive a proxy directly from the Company and you are not eligible to vote in person at the Special Meeting. The Company will notify your depository institution of the upcoming Special Meeting and that institution will issue an omnibus proxy to your broker, bank or other institution holding your securities in street name. The omnibus proxy will grant the broker, bank or other institution authority to vote your proxy at the upcoming meeting. You as the beneficial owner of the shares of stock to be voted should receive a voting instruction form (VIF) from your broker, bank or other institution that should be used by you to indicate your voting preferences. If you hold your shares in street name through your broker, bank or other institution, contact them directly about your voting preferences.
How can I vote my shares in person at the Special Meeting?
You may vote in person, if you are the shareholder of record, at the Special Meeting by completing a ballot; however, attending the Special Meeting without completing a ballot will not count as a vote. You may also be represented by another person at the Special Meeting by executing a proper proxy designating that person. Even if you plan to attend the Special Meeting, the Company recommends that you also vote by proxy, as described below, so that your vote will be counted if you later decide not to attend the Special Meeting.
How can I vote my shares without attending the Special Meeting?
If you, as shareholder of record, (or your broker, trustee or other nominee in the case of shares held through a broker, trustee or other nominee) submit a properly completed proxy, your shares will be voted as you (or they) direct. However, if you (or they, as the case may be) submit a proxy and do not specify how to vote, ERHC will vote your shares: (1) FOR the adoption of a one hundred-for-one reverse stock split; and (2) in the Companys discretion as to other business that is properly brought before the Special Meeting or any adjournment or postponement of the Special Meeting.
If you are the shareholder of record, you may vote your shares at the Special Meeting by one of the following means:
By Mail. Complete, sign and date the proxy card you received and return it in the prepaid envelope. If the prepaid envelope is missing, please mail your completed proxy card to the Companys stock transfer agent – Corporate Stock Transfer at 3200 Cherry Creek Drive South, Suite 430, Denver, Colorado 80209. All mailed proxies must be received by the Companys stock transfer agent on or before 5:00 p.m. (Denver local time) on [•][•], 2015. If you do not indicate your voting preferences, your shares will be voted as recommended by the Board of Directors.
Online. Follow the online voting instructions on the proxy card. All online votes must be received by the Companys transfer agent on or before 5:00 p.m. (Denver local time) on [•][•], 2015.
Proxies submitted online over the internet are treated in the same manner as if the shareholder had signed, dated and returned the proxy card by mail. Therefore, shareholders of record electing to vote online by the internet should not return their proxy cards by mail.
How are the votes counted?
The Company will appoint one or more inspectors of election to conduct the voting at the Special Meeting. Prior to the meeting, the inspectors will sign an oath to perform their duties in an impartial manner and to the best of their abilities. The inspectors will ascertain the number of shares outstanding and the voting power of each share, determine the shares represented at the meeting and the validity of proxies and ballots, count all votes and ballots and perform certain other duties as required by law. The inspectors will tabulate the number of votes cast for, against or withheld (abstained).
One-third of the Common Stock outstanding and entitled to vote at the Special Meeting must be present in person or represented by proxy in order to constitute a quorum. Each share represented at the Special Meeting, in person or by proxy, will be counted towards a quorum. Votes withheld or abstaining from voting will be counted for quorum purposes. Broker non-votes are likewise counted in determining whether a quorum is