UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant [X]
Filed by a Party other than the
Registrant [_]
Check the appropriate box:
[_]
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Preliminary Proxy Statement
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[_]
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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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[_]
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Definitive Additional Materials
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[_]
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Soliciting Material under Rule
14a-12
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LEATT CORPORATION
(Name
of Registrant as Specified In Its Charter)
________________________________________________________
(Name
of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X]
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No fee required
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[_]
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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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Aggregate number of securities to which transaction
applies:
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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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Fee paid previously with preliminary materials.
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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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Form, Schedule or Registration Statement No.:
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Filing Party:
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Date Filed:
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50 Kiepersol Drive, Atlas Gardens,
Contermanskloof Road,
Durbanville
Western Cape, South Africa, 7441
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON NOVEMBER 3, 2016
Dear Stockholder:
Notice is hereby given that the Annual Meeting of Stockholders
(the
Meeting
) of Leatt Corporation, a Nevada corporation (the
Company
), will be held on Thursday, November 3, 2016, at 10:00 a.m. ET,
at DresnerAllenCaron Inc., 276 Fifth Avenue, Suite 604, New York, New York, USA,
for the following purposes:
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1.
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To elect the three individuals listed in the accompanying
Proxy Statement to the Board of Directors of the Company, each to serve
until the next annual meeting of stockholders of the Company or until such
person shall resign, be removed or otherwise leave office;
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2.
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To ratify the selection by the Audit Committee of
Fitzgerald as the Companys independent registered public accounting firm
for the fiscal year ending December 31, 2016;
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3.
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To approve the compensation of our named executive officers as disclosed in this Proxy Statement; and
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4.
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To transact such other business as may properly come
before the Meeting or any adjournment thereof.
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If you owned our common stock at the close of business on
September 16, 2016, you may attend and vote at the Meeting.
A Proxy Statement describing the matters to be considered at
the Meeting is attached to this Notice. Our 2015 annual report accompanies this
Notice, but it is not deemed to be part of the Proxy Statement.
Your vote is important. Whether or not you plan to attend
the Meeting, I hope that you will vote as soon as possible. You may vote your
shares by either completing, signing and returning the accompanying proxy card
or casting your vote via a toll-free telephone number or over the Internet.
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Sincerely,
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/s/
Sean Macdonald
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Sean Macdonald
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Chief Executive Officer
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September 22, 2016
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IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY
MATERIALS FOR THE
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STOCKHOLDER MEETING TO BE HELD ON NOVEMBER 3, 2016
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This Notice and Proxy Statement and our 2015 annual report
are available online at https://www.iproxydirect.com/LEAT.
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In accordance with the Securities and Exchange Commission
(SEC) rules and regulations, we have elected to provide access to our proxy
materials over the Internet. Accordingly, the Company will mail, on or about
September 23, 2016, a Notice of Internet Availability of Proxy Materials to its
stockholders of record and beneficial owners. The Notice of Internet
Availability of Proxy Materials will identify the website where the proxy
materials will be made available; the date, time, and location of the Annual
Meeting; the matters to be acted upon at the meeting and the Board of Directors
recommendation with regard to each matter; a toll-free telephone number, an
e-mail address, and a website where stockholders can request a paper or e-mail
copy of the Proxy Statement, our Annual Report to stockholders and a form of
proxy relating to the Annual Meeting; information on how to access the form of
proxy; and information on how to obtain directions to attend the meeting and
vote in person. These proxy materials will be available free of charge.
50 Kiepersol Drive, Atlas Gardens,
Contermanskloof Road,
Durbanville
Western Cape, South Africa, 7441
The Board of Directors (the
Board
) of Leatt
Corporation, a Nevada corporation (the
Company
,
we
,
us
or
our
) is furnishing this proxy statement (the
Proxy
Statement
) and the accompanying proxy to you to solicit your proxy for the
2015 Annual Meeting of Stockholders (the
Annual Meeting
). The Annual
Meeting will be held on Thursday, November 3, 2016, at 10:00 a.m., ET, at
DresnerAllenCaron Inc., 276 Fifth Avenue, Suite 604, New York, New York, USA.
It is anticipated that the Notice of Internet Availability of
Proxy Materials will be mailed to stockholders on or about September 23, 2016.
QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING
What is this proxy statement?
You have received this Proxy Statement and our 2015 annual
report (the
Annual Report
) because our Board is soliciting your proxy
to vote your shares at the Annual Meeting. This Proxy Statement includes
information that we are required to provide to you under the rules of the
Securities and Exchange Commission (
SEC
) and that is designed to assist
you in voting your shares.
What is the purpose of the Annual Meeting?
At the Annual Meeting, our stockholders will act upon the
matters described in this Proxy Statement. These actions include the election of
directors; ratification of the appointment of the independent registered public
accounting firm (which we sometimes refer to as the
independent
auditors
); and an advisory vote to approve the compensation of our named
executive officers as disclosed in this Proxy Statement. An additional purpose
of the Annual Meeting is to transact any other business that may properly come
before the Annual Meeting and any and all adjournments or postponements of the
Annual Meeting.
Who can attend the Annual Meeting?
All stockholders of record at the close of business on
September 16, 2016 (the
Record Date
), or their duly appointed proxies,
may attend the Annual Meeting.
What proposals will be voted on at the Annual
Meeting?
Stockholders will vote on three proposals at the Annual
Meeting:
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the election of directors;
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the ratification of the appointment of
Fitzgerald as the Companys independent auditors for the year ending
December 31, 2016; and
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an advisory vote to approve the compensation of
our named executive officers as disclosed in this Proxy Statement;
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What are the Boards recommendations?
Our Board recommends that you vote:
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FOR
election of the three individuals listed in
this proxy statement to the Board of Directors;
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FOR
ratification of the appointment of Fitzgerald
as the Companys independent auditors for the year ending December 31,
2016;
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FOR
approval of the compensation of our named
executive officers as disclosed in this Proxy Statement The Stockholders
have voted for having an advisory vote every three years.
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Will there be any other business on the agenda?
The Board knows of no other matters that are likely to be
brought before the Annual Meeting. If any other matters properly come before the
Annual Meeting, however, the persons named in the enclosed proxy, or their duly
appointed substitute acting at the Annual Meeting, will be authorized to vote or
otherwise act on those matters in accordance with their judgment.
Who is entitled to vote?
Only stockholders of record at the close of business on
September 16, 2016, which we refer to as the Record Date, are entitled to notice
of, and to vote at, the Annual Meeting. As of the Record Date, there were
5,362,992
shares of our common stock outstanding and 120,000 shares of our
preferred stock issued and outstanding. Holders of common stock as of the Record
Date are entitled to one vote for each share of common stock held for each of
the proposals. Holders of our preferred stock as of the Record date are entitled
to 100 votes for each share of preferred stock held for each of the proposals.
No other class of voting securities is outstanding on the date of mailing of
this Proxy Statement.
What is the difference between holding shares as a
stockholder of record and as a beneficial owner?
Stockholder of Record.
If your shares are registered
directly in your name with our transfer agent, Interwest Transfer Company, Inc.,
you are considered, with respect to those shares, the stockholder of record.
This proxy and our Annual Report have been sent directly to you by us.
Beneficial Owner.
If your shares are held in a stock
brokerage account or by a bank or other nominee, you are considered the
beneficial owner of shares held in street name. This proxy and the Annual
Report have been forwarded to you by your broker, bank or nominee who is
considered, with respect to those shares, the stockholder of record. As the
beneficial owner, you have the right to direct your broker, bank or nominee how
to vote your shares by using the voting instructions included in with your proxy
materials.
How do I vote my shares?
Whether you hold shares directly as a registered stockholder of
record or beneficially in street name, you may vote without attending the Annual
Meeting. You may vote by granting a proxy or, for shares held beneficially in
street name, by submitting voting instructions to your stockbroker, trustee or
nominee. In most cases, you will be able to do this by using the Internet or
telephone or by mail, if you received a printed set of the proxy materials.
By Internet If you have Internet access, you may submit your
proxy via the Internet by following the instructions provided in the Notice of
Annual Meeting of Stockholders accompanying this Proxy Statement (the
Notice
), or if you received a printed version of the proxy materials by
mail, by following the instructions provided with your proxy materials and on
your proxy card or voting instruction card.
By Telephone or Mail If you received printed proxy materials,
you may submit your proxy by telephone by following the instructions provided on
your proxy card or voting instruction card. If you received a Notice, you may
submit your proxy by telephone after accessing the proxy materials via the
Internet. You may also submit your proxy by mail by signing your proxy card if
your shares are registered or, for shares held beneficially in street name, by
following the voting instructions included by your stockbroker, trustee or
nominee, and mailing it in the envelope provided. If you provide specific voting
instructions, your shares will be voted as you have instructed. Voting by
telephone is not available to persons outside of the United States.
Telephone and Internet voting facilities for stockholders of
record will be available 24 hours a day and will close at 11:59 p.m. (EDT) on
November 2, 2016.
If you vote by proxy, the individuals named on the proxy card
(your
proxies
) will vote your shares in the manner you indicate. You
may specify how your shares should be voted for each of the proposals. If you
grant a proxy without indicating your instructions, your shares will be voted as
follows:
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FOR election of the three individuals listed in this
proxy statement to the Board of Directors;
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FOR ratification of the appointment of Fitzgerald as the
Companys independent auditors for the year ending December 31, 2016; and
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FOR approval of the compensation of our named executive
officers as disclosed in this Proxy Statement.
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Each share of our common stock is entitled to one vote and each
share of our preferred stock is entitled to 100 votes per share voting with the
common stock.
What constitutes a quorum?
A quorum is the presence, in person or by proxy, of the holders
of a majority of the shares of the common stock entitled to vote. Under Nevada
law, an abstaining vote and a broker non-vote are counted as present and are,
therefore, included for purposes of determining whether a quorum of shares is
present at the Annual Meeting.
What is a broker non-vote and what is its effect on
voting?
If you are a beneficial owner of shares held in street name and
do not provide the organization that holds your shares with specific voting
instructions, under the rules of various national and regional securities
exchanges, the organization that holds your shares may generally vote on routine
matters but cannot vote on non-routine matters. If the organization that holds
your shares does not receive instructions from you on how to vote your shares on
a non-routine matter, the organization that holds your shares does not have the
authority to vote on the matter with respect to those shares. This is generally
referred to as a broker non-vote.
Proposal 2 (ratification of auditors) involves a matter that we
believe will be considered routine. All other proposals involve matters that we
believe will be considered non-routine. We encourage you to provide voting
instructions to the organization that holds your shares by carefully following
the instructions provided on your proxy card.
What is required to approve each item?
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For Proposal No. 1 (election of directors), each director
must be elected by a majority of votes cast with respect to such director
(i.e., the number of shares voted for a director nominee must exceed the
number of votes withheld from that nominee). Abstentions and broker
non-votes are not counted for purposes of the election of directors.
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For Proposal No. 2 (ratification of independent
auditors), and Proposal No. 3 (advisory vote on executive compensation),
the affirmative vote of the holders of a majority of the stockholders
shares present in person or represented by proxy at the Annual Meeting and
entitled to vote, is required.
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For any other matters on which stockholders are entitled
to vote, the affirmative vote of the holders of a majority of the
stockholders shares present in person or represented by proxy at the
Annual Meeting and entitled to vote, is required.
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For the purpose of determining whether the stockholders have
approved matters other than the election of directors, abstentions are treated
as shares present or represented and voting, so abstaining has the same effect
as a negative vote. If stockholders hold their shares through a broker, bank or
other nominee and do not instruct them how to vote, the broker may have
authority to vote the shares for routine matters.
Stockholders may not cumulate votes in the election of
directors, which means that each stockholder may vote no more than the number of
shares he or she owns for a single director candidate.
Our bylaws require that, in uncontested elections, each
director be elected by the majority of votes cast with respect to such director.
This means that the number of shares voted for a director nominee must exceed
the number of votes withheld from that nominee in order for that nominee to be
elected. Only votes for or withheld are counted as votes cast with respect
to a director. Abstentions and broker non-votes will have no effect.
How will shares of common stock represented by properly
executed proxies be voted?
All shares of common stock represented by proper proxies will,
unless such proxies have previously been revoked, be voted in accordance with
the instructions indicated in such proxies. If you do not provide voting
instructions, your shares will be voted in accordance with the Boards
recommendations as set forth herein. In addition, if any other matters properly
come before the Annual Meeting, the persons named in the enclosed proxy, or
their duly appointed substitute acting at the Annual Meeting, will be authorized
to vote or otherwise act on those matters in accordance with their judgment.
Can I change my vote or revoke my proxy?
Any stockholder executing a proxy has the power to revoke such
proxy at any time prior to your shares being voted. You may revoke your proxy
prior to your shares being voted by calling 1-866-752-VOTE (8683), or by
accessing the Internet website https://www.iproxydirect.com/LEAT, or in writing
by execution of a subsequently dated proxy, or by a written notice of
revocation, sent to the attention of the Corporate Secretary at Leatt
Corporation, Suite 109, Private Bag X3, Bloubergrant, 7443, Western Cape, South
Africa, or by attending and voting in person at the Annual Meeting. Unless
revoked, the shares represented by timely received proxies will be voted in
accordance with the directions given therein. Your most current proxy card or
telephone or Internet proxy is the one that is counted.
If the Annual Meeting is postponed or adjourned for any reason,
at any subsequent reconvening of the Annual Meeting, all proxies will be voted
in the same manner as the proxies would have been voted at the previously
convened Annual Meeting (except for any proxies that have at that time
effectively been revoked or withdrawn), even if the proxies had been effectively
voted on the same or any other matter at a previous Annual Meeting.
How are proxies solicited?
In addition to the mail solicitation of proxies, our officers,
directors, employees and agents may solicit proxies by written communication,
telephone or personal call. These persons will receive no special compensation
for any solicitation activities. We will reimburse banks, brokers and other
persons holding common stock for their expenses in forwarding proxy solicitation
materials to beneficial owners of our common stock.
Who paid for this proxy solicitation?
The cost of preparing, printing, assembling and mailing this
proxy statement and other material furnished to stockholders in connection with
the solicitation of proxies is borne by us.
What is householding?
The SEC has adopted rules that allow a company to deliver a
single proxy statement or annual report to an address shared by two or more of
its stockholders. This method of delivery, known as householding, permits us
to realize significant cost savings, reduces the amount of duplicate information
stockholders receive, and reduces the environmental impact of printing and
mailing documents to you. Under this process, certain stockholders of record who
do not participate in electronic delivery of proxy materials will receive only
one copy of our proxy materials and any additional proxy materials that are
delivered until such time as one or more of these stockholders notifies us that
they want to receive separate copies.
Any stockholders who wish to opt out of, or wish to begin,
householding may contact our Corporate Secretary through one of the following
methods:
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by sending a written request by mail to:
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Leatt Corporation
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Suite 109, Private Bag X3, Bloubergrant, 7443,
Western Cape, South Africa
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Attention: Corporate Secretary
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by calling our Corporate Secretary, at +(27)
21-557-7257.
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How do I learn the results of the voting at the Annual
Meeting?
The preliminary voting results will be announced at the Annual
Meeting. The final results will be published in our current report on Form 8-K
to be filed with the SEC within four business days after the date of the Annual
Meeting, provided that the final results are available at such time. In the
event the final results are not available within such time period, the
preliminary voting results will be published in our current report on Form 8-K
to be filed within such time period, and the final results will be published in
an amended current report on Form 8-K/A to be filed within four business days
after the final results are available.
Can I receive future stockholder communications
electronically through the Internet?
Yes. You may elect to receive future notices of meetings, proxy
materials and annual reports electronically through the Internet. To consent to
electronic delivery, vote your shares using the Internet. At the end of the
Internet voting procedure, the on-screen Internet voting instructions will tell
you how to request future stockholder communications be sent to you
electronically.
Once you consent to electronic delivery, you must vote your
shares using the Internet and your consent will remain in effect until
withdrawn. You may withdraw this consent at any time during the voting process
and resume receiving stockholder communications in print form.
Whom may I contact for further assistance?
If you have any questions about giving your proxy or require
any assistance, please contact our Corporate Secretary:
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by mail to:
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Leatt Corporation
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Suite 109, Private Bag X3, Bloubergrant, 7443,
Western Cape, South Africa
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Attention: Corporate Secretary
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by telephone at +(27) 21-557-7257.
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DIRECTORS AND EXECUTIVE OFFICERS
Set forth below are the names of our current officers and
directors, their ages, all positions and offices that they hold with us, the
period during which they have served as such, and their business experience
during at least the last five years.
Name
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Age
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Title
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Dr. Christopher James Leatt
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48
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Founder, Chairman and Research
& Development Consultant
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Sean Macdonald
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39
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CEO, CFO, President and Director
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Jeffrey Joseph Guzy
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65
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Director
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DR. CHRISTOPHER LEATT: Dr. Leatt, aged 48, has served as the
Company's Chairman since 2005 and as the Company's Research and Development
consultant since July 2015. He held positions in General Surgery and General
Medicine/Geriatrics/Gastroenterology before becoming a General Medical
Practitioner and Chairman of ERIPO (Eerste River Independent Practitioners
Association), an organization formed to look after both the Medical and Business
interests of forty Independent Practitioners. Dr. Leatt then worked in
casualty/trauma at various hospitals before becoming a surgical medical officer.
A brief stint as an Orthopedic Registrar at Groote Schuur Hospital preceded his
post as Neurosurgery Registrar at the Department of Neurosurgery, Tygerberg
Academic Hospital. Dr. Leatt's duties as a surgical registrar in this discipline
included ward work, High-Care duties, evaluation of referrals, outpatient
consultations, emergency and elective surgery, logbook of all surgical
procedures completed. He resigned from his post in Neurosurgery in order to
develop and study the benefits and viability of a neck protection system (the
Leatt-Brace®) for helmet clad sport and recreational users in an attempt to
reduce devastating neck injuries. Dr. Leatt is a fixed wing and helicopter pilot
and is an active participant in competitive cross-country motorcycle endurance
races, as well as Super Sport and Battle of the Twins (BOTTS) track racing
events. He won the Western Province BOTTS championship in 2011. When not
participating in such events, Dr. Leatt is often involved in providing medical
support there.
SEAN MACDONALD: Mr. Macdonald, CA (SA), aged 39, has served as
the Companys Chief Executive Officer and President since November 2010, as its
Chief Financial Officer since August 2009, and as a Director since May 2010.
Prior to joining the Company, Mr. Macdonald served from August 2004 to December
2009, as the Chief Financial Officer of Cyclelab, the largest bicycle retailer
in South Africa, where he was responsible for operational, financial and
strategic leadership of the business including the implementation of a franchise model in order to grow the business. Mr.
Macdonald holds a Bachelor of Commerce Degree in Finance and Information Systems
from the University of Cape Town, as well as a Post-Graduate Diploma in
Accounting, which included 3 years of articles at KPMG Cape Town. Mr. Macdonald
is also a South Africa registered Chartered Accountant.
JEFFREY GUZY: Mr. Guzy, aged 65, has served as a director since
April 2007 and serves as a business development consultant and entrepreneur in
Arlington, Virginia. Mr. Guzy is currently working with CENTRAL Oil and Gas
Corporation and Aero-X Golf Inc (dba Polara Golf). Prior to that, Mr. Guzy
served, from October 2007 to August 2010 as our President. Mr. Guzy has a MBA in
Strategic Planning and Management from The Wharton School of the University of
Pennsylvania; a M.S. in Systems Engineering from the University of Pennsylvania;
a B.S. in Electrical Engineering from Penn State University; and a Certificate
in Theology from Georgetown University. Mr. Guzy has served as an executive
manager or consultant for business development, sales, customer service and
management in the telecommunications industry, specifically, with IBM Corp.,
Sprint International, Bell Atlantic Video Services, Loral CyberStar and
FaciliCom International. Mr. Guzy has also started his own telecommunications
company providing Internet services in Western Africa. He serves as an
independent director of Capstone Industries (CAPC) and UBL Interactive (UBLI),
both public corporations.
There are no agreements or understandings for any of our
executive officers, directors or significant employees to resign at the request
of another person and no officer or director is acting on behalf of nor will any
of them act at the direction of any other person.
Qualifications, Attributes, Skills and Experience
Represented on the Board
The Board has identified particular qualifications, attributes,
skills and experience that are important to be represented on the board as a
whole, in light of our current needs and business priorities. The Board believes
that each director is a recognized person of high integrity with a proven record
of success in his or her field. Each director demonstrates innovative thinking,
familiarity with and respect for corporate governance requirements and
practices, an appreciation of multiple cultures and a commitment to the business
and operations of the Company. In addition to the foregoing qualifications, the
Board has assessed the intangible qualities including the directors ability to
ask difficult questions and, simultaneously, to work collegially. The Board also
considers diversity of age, cultural background and professional experiences in
evaluating candidates for Board membership. Diversity is important because a
variety of points of view contribute to a more effective decision-making
process.
Set forth below is a tabular disclosure summarizing some of the
specific qualifications, attributes, skills and experiences of our directors.
Name
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Title
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Qualifications
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Dr. Christopher James Leatt
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Founder, Chairman and Head of
Research & Development
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Dr. Leatt holds a Bachelor of Medicine and Bachelor of
Surgery Degree and is the inventor of the Leatt Brace® and the Founder of
the Company.
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He supports the Companys research and development
department and has an intimate knowledge of the Companys innovative
products.
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He contributes invaluable long-term knowledge of the
Companys business and operations and extensive experience in the
industry.
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Sean Macdonald
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CEO, CFO, President and
Director
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Mr. Macdonald is a registered Chartered Accountant and
holds a Bachelor of Commerce Degree in Finance and Information Systems and
a Post-Graduate Diploma in Accounting.
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His invaluable experience in finance and accounting
provides insight for the implementation of effective operational,
financial and strategic leadership of the Company.
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Jeffrey Joseph Guzy
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Director
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Through his Masters Degree in Business Administration in
Strategic Planning & Management and his knowledge of U.S. capital
markets, Mr. Guzy provides invaluable guidance and perspective to the
Board.
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He has also served as the Companys President and has
invaluable long-term knowledge of the Companys business and
operations.
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Family Relationships
There are no family relationships among our directors or
officers.
Involvement in Certain Legal Proceedings
To the best of our knowledge, none of our directors or
executive officers has, during the past ten years:
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been convicted in a criminal proceeding or been subject
to a pending criminal proceeding (excluding traffic violations and other
minor offences);
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had any bankruptcy petition filed by or against the
business or property of the person, or of any partnership, corporation or
business association of which he was a general partner or executive
officer, either at the time of the bankruptcy filing or within two years
prior to that time;
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been subject to any order, judgment, or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction or federal or state authority, permanently or temporarily
enjoining, barring, suspending or otherwise limiting, his involvement in
any type of business, securities, futures, commodities, investment,
banking, savings and loan, or insurance activities, or to be associated
with persons engaged in any such activity;
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been found by a court of competent jurisdiction in a
civil action or by the SEC or the Commodity Futures Trading Commission to
have violated a federal or state securities or commodities law, and the
judgment has not been reversed, suspended, or vacated;
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been the subject of, or a party to, any federal or state
judicial or administrative order, judgment, decree, or finding, not
subsequently reversed, suspended or vacated (not including any settlement
of a civil proceeding among private litigants), relating to an alleged
violation of any federal or state securities or commodities law or
regulation, any law or regulation respecting financial institutions or
insurance companies including, but not limited to, a temporary or
permanent injunction, order of disgorgement or restitution, civil money
penalty or temporary or permanent cease-and-desist order, or removal or
prohibition order, or any law or regulation prohibiting mail or wire fraud
or fraud in connection with any business entity; or
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been the subject of, or a party to, any sanction or
order, not subsequently reversed, suspended or vacated, of any self-
regulatory organization (as defined in Section 3(a)(26) of the Exchange
Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section
1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any
equivalent exchange, association, entity or organization that has
disciplinary authority over its members or persons associated with a
member.
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Except as set forth in our discussion below in Certain
Relationships and Related Transactions, and Director Independence Transactions
with Related Persons, none of our directors, director nominees or executive
officers has been involved in any transactions with us or any of our directors,
executive officers, affiliates or associates which are required to be disclosed
pursuant to the rules and regulations of the SEC.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934, as
amended (the
Exchange Act
) requires our executive officers, directors
and beneficial owners of more than 10% of a registered class of our equity
securities to file with the SEC statements of ownership and changes in
ownership. The same persons are required to furnish us with copies of all
Section 16(a) forms they file. Except as set forth below and in our previous
reports filed with the SEC, we believe that all of our executive officers,
directors and beneficial owner of more than 10% of a registered class of our
equity securities complied with the applicable filing requirements during fiscal
year 2015.
In making these statements, we have relied upon examination of
the copies of all Section 16(a) forms provided to us and the written
representations of our executive officers, directors and beneficial owners of
more than 10% of a registered class of our equity securities.
CORPORATE GOVERNANCE
Our current corporate governance practices and policies are
designed to promote stockholder value and we are committed to the highest
standards of corporate ethics and diligent compliance with financial accounting
and reporting rules. Our Board provides independent leadership in the exercise
of its responsibilities. Our management oversees a system of internal controls
and compliance with corporate policies and applicable laws and regulations, and
our employees operate in a climate of responsibility, candor and integrity.
The Board and Committees of the Board
We are governed by a Board that currently consists of three
members as identified above. Our board of directors currently has two standing
committees: the Audit Committee and Compensation Committee, which, pursuant to
delegated authority, perform various duties on behalf of and report to the
Board. From time to time, the Board may establish other committees.
Audit Committee
Our Audit Committee is currently composed of three members: Mr.
Jeffrey Guzy and Mr. Macdonald. Mr. Guzy serves as Chair of the Audit Committee
and our Board determined that he is an independent director within the meaning
of the NASDAQ Marketplace Rules.
Our Audit Committee oversees our accounting and financial
reporting processes and the audits of our financial statements. It is
responsible for, among other things:
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selecting our independent auditors and pre-approving all
auditing and non-auditing services permitted to be performed by our
independent auditors;
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reviewing with our independent auditors any audit
problems or difficulties and managements response;
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reviewing and approving all proposed related-party
transactions;
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discussing the annual audited financial statements with
management and our independent auditors;
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reviewing the adequacy and effectiveness of our internal
control over financial reporting;
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annually reviewing and reassessing the adequacy of our
audit committee charter;
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such other matters that are specifically delegated to our
Audit Committee by our Board from time to time;
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meeting separately and periodically with management and
our internal and independent auditors; and
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reporting regularly to the full Board.
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Our Board has determined that Mr. Guzy is the audit committee
financial expert as such term is defined in Item 407(d) of Regulation S-K
promulgated by the SEC and also meets NASDAQs financial sophistication
requirements.
Compensation Committee
Our Compensation Committee is currently composed of two
members: Mr. Jeffrey Guzy and Mr. Sean Macdonald. Only Mr. Guzy, who serves as
Chair of the Compensation Committee, is independent within the meaning of the
NASDAQ Marketplace Rules.
Our Compensation Committee assists the Board in reviewing and
approving the compensation structure of executive officers, including all forms
of compensation to be provided to our executive officers. Our chief executive
officer may not be present at any committee meeting during which his
compensation is deliberated.
The Compensation Committee is responsible for, among other
things:
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approving and overseeing the compensation
package for our executive officers;
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reviewing and approving corporate goals and objectives
relevant to the compensation of our chief executive officer, evaluating
the performance of our chief executive officer in light of those goals and
objectives, and setting the compensation level of our chief executive
officer based on this evaluation; and
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reviewing periodically and making recommendations to the
Board regarding any long-term incentive compensation or equity plans,
programs or similar arrangements, annual bonuses, employee pension and
welfare benefit plans.
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Governance Structure
The Board believes that the interests of all stockholders are
best served at the present time through a leadership model with a separate Board
Chair and CEO. However, the Board retains authority to combine the positions of
Board Chair and CEO at any time. The current CEO and Board Chair possess an
in-depth knowledge of the Company, its integrated operations, and the array of
challenges to be faced, gained through years of combined experience in the
industry. The Board believes that these experiences and other insights put them
in the best position to provide broad leadership for the Company and the Board,
respectively, as they consider strategy and exercise fiduciary responsibilities
to stockholders, as the case may be.
The Boards Role in Risk Oversight
The Board oversees that the assets of the Company are properly
safeguarded, that the appropriate financial and other controls are maintained,
and that the Companys business is conducted wisely and in compliance with
applicable laws and regulations and proper governance. Included in these
responsibilities is the Board of Directors oversight of the various risks
facing the Company. In this regard, the Board seeks to understand and oversee
critical business risks. The Board does not view risk in isolation. Risks are
considered in virtually every business decision and as part of the Companys
business strategy. The Board recognizes that it is neither possible nor prudent
to eliminate all risk. Indeed, purposeful and appropriate risk-taking is
essential for the Company to be competitive on a global basis and to achieve its
objectives.
While the Board oversees risk management, Company management is
charged with managing risk. The Company has internal processes and an internal
control environment to identify and manage risks and to communicate with the
Board. The Board and the Audit Committee monitor and evaluate the effectiveness
of the internal controls and the risk management program at least annually. The
Board implements its risk oversight function both as a whole and through
Committees. Much of the work is delegated to various Committees, which meet
regularly and report back to the full Board. All Committees play significant
roles in carrying out the risk oversight function. In particular:
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The Audit Committee oversees risks related to the
Companys financial statements, the financial reporting process,
accounting and legal matters. The Audit Committee oversees the internal
audit function and the Companys ethics programs, including the Code of
Ethics. The Audit Committee members meet separately with representatives
of the independent auditing firm; and
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The Compensation Committee evaluates the risks and
rewards associated with the Companys compensation philosophy and
programs. The Compensation Committee reviews and approves compensation
programs with features that mitigate risk without diminishing the
incentive nature of the compensation. Management discusses with the
Compensation Committee the procedures that have been put in place to
identify and mitigate potential risks in compensation.
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Independent Directors
Our Board has determined that the Mr. Jeffrey Guzy qualifies as
an independent director of the Board within the meaning of applicable NASDAQ
Marketplace Rules and Section 301 of the Sarbanes-Oxley Act of 2002. Mr. Guzy
serves as Chairman of each of the Audit Committee and Compensation Committee of
the Board.
Board, Committee and Annual Meeting Attendance
During 2015, the Board held four meetings and acted by written
consent four times. During the period our Audit Committee acted four times by written consent. Each director attended
at least 75% of all Board and applicable committee meetings.
Our directors are expected to attend Board meetings as
frequently as necessary to properly discharge their responsibilities and to
spend the time needed to prepare for each such meeting. We encourage our
directors to attend annual shareholder meetings, but we do not have a formal
policy requiring them to do so.
Code of Ethics
On April 30, 2012, our Board adopted a code of ethics, which
applies to all of our directors, officers and employees, including our principal
executive officer, principal financial officer, and principal accounting
officer. The code of ethics is designed to deter wrongdoing and to promote
honest and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships; full,
fair, accurate, timely and understandable disclosure in reports and documents
that we file with, or submit to, the SEC, and in other public communications
that we made; compliance with applicable government laws, rules and regulations;
the prompt internal reporting of violations of the code to the appropriate
person or persons; and accountability for adherence to the code. We believe that
our reputation is a valuable asset and must continually be guarded by all
associated with us so as to cam the trust, confidence and respect of our
suppliers, customers and stockholders.
Printed copies of our code of ethics may be obtained, without
charge, by contacting the Corporate Secretary, Leatt Corporation, 50 Kiepersol
Drive, Atlas Gardens, Contermanskloof Road, Durbanville, Western Cape, South
Africa, 7441. During the year ended December 31, 2015, there were no waivers of
our code of ethics.
Stockholder Communication with the Board
Stockholders and other interested parties may communicate with
the Board, including non-management directors, by sending a letter to our board
of directors, c/o Corporate Secretary, Leatt Corporation, Suite 109, Private Bag
X3, Bloubergrant, 7443, Western Cape, South Africa for submission to the Board
or committee or to any specific director to whom the correspondence is directed.
Stockholders communicating through this means should include with the
correspondence evidence, such as documentation from a brokerage firm, that the
sender is a current record or beneficial stockholder of the Company. All
communications received as set forth above will be opened by the Corporate
Secretary or his designee for the sole purpose of determining whether the
contents contain a message to one or more of our directors. Any contents that
are not advertising materials, promotions of a product or service, patently
offensive materials or matters deemed, using reasonable judgment, inappropriate
for the Board will be forwarded promptly to the chairman of the Board, the
appropriate committee or the specific director, as applicable.
REPORT OF THE AUDIT COMMITTEE
The Audit Committee of the Board is comprised of three
non-employee Directors, each of whom has been determined by the Board to be
independent under the meaning of Rule 10A-3(b)(1) under the Exchange Act. The
Board has determined, based upon an interview of Mr. Jeffrey Guzy and a review
of Mr. Guzys responses to a questionnaire designed to elicit information
regarding his experience in accounting and financial matters, that Mr. Guzy
shall be designated as an Audit Committee financial expert within the meaning
of Item 401(e) of SEC Regulation S-K, as Mr. Guzy has past employment experience
in finance or accounting, requisite professional certification in accounting, or
any other comparable experience or background which results in his financial
sophistication. The Audit Committee assists the Boards oversight of the
integrity of the Companys financial reports, compliance with legal and
regulatory requirements, the qualifications and independence of the Companys
independent registered public accounting firm, the audit process, and internal
controls. The Audit Committee operates pursuant to a written charter adopted by
the Board. The Audit Committee is responsible for overseeing the corporate
accounting and financing reporting practices, recommending the selection of the
Companys registered public accounting firm, reviewing the extent of non-audit
services to be performed by the auditors, and reviewing the disclosures made in
the Companys periodic financial reports. The Audit Committee also reviews and
recommends to the Board that the audited financial statements be included in the
Companys Annual Report on Form 10-K.
Following the end of the fiscal year ended December 31, 2015,
the Audit Committee (1) reviewed and discussed the audited financial statements
for the fiscal year ended December 31, 2015 with Company management; (2)
discussed with the independent auditors the matters required to be discussed by
SAS 61 as amended, (AICPA, Professional Standards, Vol.1 AU Section 380), as
adopted by the Public Company Accounting Oversight Board (United States) and (3)
received the written disclosures and the letter from the independent public
accounting firms required by applicable requirements of the Public Company
Accounting Oversight Board (United States) regarding the independent public
accounting firm's communications with the Audit Committee concerning
independence, and has discussed with the independent public accounting firm its
independence.
Based on the review and discussions referred to above, the
Audit Committee recommended to the Board of Directors that the audited financial
statements be included in the Companys Annual Report on Form 10-K for the
fiscal year ended December 31, 2015 for filing with the SEC.
/s/ Jeffrey Guzy
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Mr. Jeffrey Guzy, Chair
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Mr. Sean Macdonald
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EXECUTIVE COMPENSATION
Summary Compensation Table Update
The following table sets forth information concerning all cash
and non-cash compensation awarded to, earned by or paid to the following persons
for services rendered in all capacities during the indicated periods. No other
executive officers received total annual salary and bonus compensation in excess
of $100,000.
Name and
Principal
Position
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Year
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Salary
($)
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Bonus
($)
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Stock
Awards
($)
|
Option
Awards
($)
(1)
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Non-Equity
Incentive
Plan
Compensation
Earnings
($)
|
Non-
qualified
Deferred
Compensation
Earnings
($)
|
All Other
Compensation
($)
|
Total
($)
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Dr. Christopher
Leatt,
Chairman and
Research and
Development
Consultant
(2)
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2013
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487,668
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--
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--
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160
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--
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--
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9,468
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497,296
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2014
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487,668
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--
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--
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160
|
--
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--
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8,956
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496,784
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2015
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182,876
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5,000
|
--
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--
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--
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--
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275,691
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463,567
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Sean
Macdonald,
President,
CEO, CFO
and Director
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2013
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189,502
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--
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--
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240
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--
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--
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10,467
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200,209
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2014
|
172,774
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13,055
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--
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240
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--
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--
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10,338
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196,407
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2015
|
173,318
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22,500
|
--
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--
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--
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--
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5,573
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201.391
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Todd Repsher
U.S. National
Sales
Manager
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2013
|
--
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--
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--
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--
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--
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--
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--
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--
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2014
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106,000
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4,915
|
--
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--
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--
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--
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--
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110,915
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2015
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140,000
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5,000
|
--
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--
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--
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--
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--
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145,000
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(1)
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The option awards reflect a 1-for-25 reverse split
effected by the Company on September 20, 2012.
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(2)
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Also reflects compensation to Dr. Leatt in his capacity
as our Research and Development consultant as discussed under the
Summary of Employment Agreements
heading below. Compensation
received by Dr. Leatt in his role as Chairman of the Companys board of
directors is separately reflected under the Compensation heading
below.
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Summary of Employment Agreements
We have entered into an employment agreement, effective as of
January 1, 2014, with Sean Macdonald our President, CEO and CFO, pursuant to
which, as amended, we were obligated to pay him an annual base salary of
$195,000 per annum. This Agreement includes the duty to pay Mr. Macdonalds
directors fees of $650 per month. Mr. Macdonald receives coverage under the
Companys employment benefit plans and is entitled to an annual performance
based bonus at the sole discretion of the Companys Board of Directors. Mr.
Macdonald is also subject to the customary confidentiality covenants and South
African Labor Laws which entitle Mr. Macdonald to one weeks severance pay for
each year of service to the Company. The agreement may be terminated by either
party with six months written notice; provided that Mr. Macdonald will be
obligated to assist in the appointment and orientation of his successor during
such six-month period. Mr. Macdonald may also be terminated by the Company with
no notice for gross misconduct, incapacity or for breach of the employment
agreement.
We have entered into an employment agreement, effective as of
March 3, 2014, with Todd Repsher, our U.S. National Sales Manager, pursuant to
which, we are obligated to pay him an annual base salary of $10,000 per month.
Mr. Repsher receives coverage under the Companys employment benefit plans and
is entitled to a $5,000 annual performance based bonus at the sole discretion of
the Companys Board of Directors. Mr. Repsher is also subject to customary
confidentiality and indemnification requirements. The agreement may be
terminated at any time by the Company and upon three months written notice by
Mr. Repsher, however, in advance of any termination based on neglect of duty or
breach of the employment agreement, the Company may, in its sole discretion,
give Mr. Repsher 15 days advance notice with an opportunity to cure the
deficiency. The agreement is subject to California law and disputes under the
agreement are subject to resolution by arbitration
We had also entered into an employment agreement, effective as
of November 9, 2010, with Dr. Christopher Leatt, in his capacity as our Chairman
and Head of Research and Development, pursuant to which, we were obligated to
pay him an annual base salary of $487,668. Dr. Leatt also received coverage
under the Companys employment benefit plans as well as the mandatory one weeks
severance pay for each year of service to the Company. He was also subject to
the customary confidentiality covenants. However, on July 8, 2015, the Company
terminated this employment agreement and entered into a consulting agreement or
Consulting Agreement, with Innovate Services Limited or Innovate, a Seychelles
limited company in which, Dr. Leatt is an indirect beneficiary. Pursuant to the
terms of the Consulting Agreement, Innovate has agreed to serve as the Companys
exclusive research, development and marketing consultant in exchange for a
monthly fee of $35,639; provided that Dr. Leatt personally performs the services
to be performed by Innovate under the Agreement, pursuant to a separate
employment agreement between Innovate and Dr. Leatt. The parties further agreed
that all intellectual property generated in connection with the services
provided under the Consulting Agreement will be the sole property of the
Company. The Consulting Agreement is effective as of May 15, 2015, and will
continue unless terminated by either party in accordance with its terms. Either
party has the right to terminate the Consulting Agreement upon 6 months' prior
written notice, except that the Consulting Agreement may be terminated
immediately without notice if the services to performed under the Consulting
Agreement cease to be performed by Dr. Leatt or for any other material breach of
the Agreement by any of the parties. The parties have agreed to settle any
dispute under the Consulting Agreement through arbitration in accordance with
the Commercial Arbitration Rules of the American Arbitration Association (AAA),
and that the resulting arbitration award will be final and binding on both
parties and will not be subject to any appeal.
Grants of Plan-Based Awards
The following table sets forth information regarding equity
grants to named executive officers during the fiscal year ended December 31,
2015, including prior year grants that vested during the period.
Name
|
Grant Date
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All other stock
awards:
Number of
shares of stock
or units
|
All other option
awards:
Number of
securities
underlying
options
(1)
|
Exercise or
base price of
option awards
($/Sh)
(1)
|
Grant date
fair value of
stock and
option awards
($)
|
Dr. Christopher Leatt
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2/1/2012
|
-
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52,000
|
$1.00
|
$52,000
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Sean Macdonald
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2/1/2012
|
-
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78,000
|
$1.00
|
$78,000
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(1)
|
The Company effected a one-for-twenty-five reverse stock
split on September 20, 2012, which decreased the number of option shares
and increased the exercise price to $1.00 per
share.
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Outstanding Equity Awards at Fiscal Year End
The following table sets forth the equity awards outstanding at
December 31, 2015 for each of our named executive officers.
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OPTION
AWARDS
|
Name
|
Number of
securities
underlying
unexercised
options
(1)
exercisable
|
Number of
securities
underlying
unexercised
options
unexercisable
|
Equity incentive
plan awards:
number of
securities
underlying
unexercised
unearned
options
|
Option
exercise
price
(1)
($)
|
Option
expiration
date
|
Dr. Christopher Leatt
|
52,000
|
--
|
--
|
$1.00
|
February 1, 2017
|
Sean Macdonald
|
78,000
|
--
|
--
|
$1.00
|
February 1, 2017
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(1)
The Company effected a one-for-twenty-five
reverse stock split on September 20, 2012, which decreased the number of option
shares and increased the exercise price to $1.00 per share.
On February 1, 2012, the Board of Directors of the Company
approved the grant to Dr. Christopher Leatt, the Companys Chairman, of a 5-year
option to purchase 1,300,000 shares of the Companys common stock at $0.04 per
share under the Companys 2011 Plan. The option to purchase 520,000 of the
shares vested on February 1, 2012, the grant date, and the option to purchase
the remaining shares vested in equal portions on December 31, 2012, 2013 and
2014. After giving effect to the reverse split effected on September 20, 2012,
Dr. Leatt has vested options to purchase 52,000 shares of the Companys common
stock at $1.00 per share.
On February 1, 2012, the Board of Directors of the Company
approved the grant to Sean Macdonald, the Companys Chief Executive Officer and
Chief Financial Officer, of a 5-year option to purchase 1,950,000 shares of the
Companys common stock at $0.04 per share under the Companys 2011 Plan. The
option to purchase 780,000 of the shares vested on February 1, 2012, the grant
date, and the option to purchase the remaining shares vested in equal portions
on December 31, 2012, 2013 and 2014. After giving effect to the reverse split
effected on September 20, 2012, Mr. Macdonald has vested options to purchase
78,000 shares of the Companys common stock at $1.00 per share.
Option Exercises and Stock Vested
No named executive officers exercised stock options, stock
appreciation rights or similar instruments or had vesting stock during the
fiscal year ended December 31, 2015.
Pension Benefits
No named executive officers received or held pension benefits
and the Company does not maintain a pension benefit plan during the fiscal year
ended December 31, 2015.
Nonqualified Deferred Compensation
No nonqualified deferred compensation was offered or issued to
any named executive officer during the fiscal year ended December 31, 2015.
Potential Payments upon Termination or Change in
Control
Our named executive officers are not entitled to severance
payments or other benefit upon the termination of their employment agreements or
following a change in control.
Compensation of Directors
The following table sets forth the total director compensation
earned by our directors during our fiscal year ended December 31, 2015:
Name
|
Fees earned
or
paid in cash
($)
|
Stock
awards
($)
|
Option
awards
($)
|
All other
compensation
($)
|
Total
($)
|
Dr. Christopher Leatt
|
37,500
|
-
|
-
|
-
|
37,500
|
Jeffrey J. Guzy
|
4,507
|
-
|
246
|
-
|
4,753
|
Sean Macdonald
|
4,507
|
-
|
-
|
-
|
4,507
|
Narrative to Director Compensation Table
During the 2015 fiscal year, we paid our directors
approximately ZAR 5,000 (approximately, $375) per month compensation for their
services as our directors. In the future, we may adopt a policy of paying
independent directors a fee for their attendance at board and committee
meetings. We also reimburse our directors for reasonable travel expenses related
to their duties as our directors.
On February 14, 2014, the Board of Directors of the Company
approved the grant to Jeff Guzy, one of the Companys Directors, of a 5-year
option to purchase an aggregate of 15,000 shares of the Companys common stock
at $1.00 per share under the Companys 2011 Plan. The option to purchase an
aggregate of 6,000 of the shares vested on February 14, 2014, the grant date and
option to purchase 6,000 shares vested in equal portions on February 14, 2015
and 2016, respectively. The remaining 3,000 shares will vest on February 14,
2017.
On July 8, 2015, the Company has entered into a Director
Agreement with Board Chairman, Dr. Christopher Leatt, pursuant to which, in
addition to his duties with the Company's Research and Development department,
Dr. Leatt agreed to devote as much time as is necessary to perform the duties of
a director of the Company, including duties as a member of any committees that
he may be appointed to by the Board of Directors, including but not limited to
assisting the Company with the development of business and new business
strategies relating to the objectives of the Company, participation in the
Companys investor relations activities, including road shows and shareholder communication activities, and
participation in corporate strategy decisions of the Company. Dr. Leatt will
receive a base fee of $5,000 per month as compensation for his services, and the
Company has agreed to indemnify him to the full extent allowed by law except
where such indemnification is prohibited due to intentional misconduct, fraud or
knowing violation of law. Either party may terminate the Director Agreement at
any time upon six months' written notice unless he resigns from his position or
is removed by shareholders of the Company prior to such termination.
Effective January 1, 2016, the Company increased the
compensation amount given to each of Mr. Jeff Guzy and Mr. Sean Macdonald for
their services as directors of the Company to $650 per month.
Limitation of Liability and Indemnification
Section 78.138 of the NRS provides that a director or officer
will not be individually liable unless it is proven that (i) the director's or
officer's acts or omissions constituted a breach of his or her fiduciary duties,
and (ii) such breach involved intentional misconduct, fraud or a knowing
violation of the law.
Section 78.7502 of NRS permits a company to indemnify its
directors and officers against expenses, judgments, fines and amounts paid in
settlement actually and reasonably incurred in connection with a threatened,
pending or completed action, suit or proceeding if the officer or director (i)
is not liable pursuant to NRS 78.138 or (ii) acted in good faith and in a manner
the officer or director reasonably believed to be in or not opposed to the best
interests of the corporation and, if a criminal action or proceeding, had no
reasonable cause to believe the conduct of the officer or director was
unlawful.
Section 78.751 of NRS permits a Nevada company to indemnify its
officers and directors against expenses incurred by them in defending a civil or
criminal action, suit or proceeding as they are incurred and in advance of final
disposition thereof, upon receipt of an undertaking by or on behalf of the
officer or director to repay the amount if it is ultimately determined by a
court of competent jurisdiction that such officer or director is not entitled to
be indemnified by the company. Section 78.751 of NRS further permits the company
to grant its directors and officers additional rights of indemnification under
its articles of incorporation or bylaws or otherwise.
Section 78.752 of NRS provides that a Nevada company may
purchase and maintain insurance or make other financial arrangements on behalf
of any person who is or was a director, officer, employee or agent of the
company, or is or was serving at the request of the company as a director,
officer, employee or agent of another company, partnership, joint venture, trust
or other enterprise, for any liability asserted against him and liability and
expenses incurred by him in his capacity as a director, officer, employee or
agent, or arising out of his status as such, whether or not the company has the
authority to indemnify him against such liability and expenses.
Our Articles of Incorporation provide that no director or
officer of the Company will be personally liable to the Company or any of its
stockholders for damages for breach of fiduciary duty as a director or officer;
provided, however, that the foregoing provision shall not eliminate or limit the
liability of a director or officer (i) for acts or omissions which involve
intentional misconduct, fraud or knowing violation of law, or (ii) the payment
of dividends in violation of Section 78.300 of NRS. In addition, our Bylaws
implement the indemnification and insurance provisions permitted by Chapter 78
of the NRS by providing that:
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|
The Company shall indemnify its directors to the fullest
extent permitted by the NRS and may, if and to the extent authorized by
the board of directors, so indemnify its officers and any other person
whom it has the power to indemnify against liability, reasonable expense
or other matter whatsoever.
|
|
|
|
|
|
The Company may at the discretion of the board of
directors purchase and maintain insurance on behalf of any person who
holds or who has held any position identified in the paragraph above
against any and all liability incurred by such person in any such position
or arising out of his status as such.
|
Insofar as indemnification by us for liabilities arising under
the Securities Act may be permitted to our directors, officers or persons
controlling the company pursuant to provisions of our articles of incorporation
and bylaws, or otherwise, we have been advised that in the opinion of the SEC,
such indemnification is against public policy as expressed in the Securities Act
and is therefore unenforceable. In the event that a claim for indemnification by
such director, officer or controlling person of us in the successful defense of
any action, suit or proceeding is asserted by such director, officer or
controlling person in connection with the securities being offered, we will,
unless in the opinion of our counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by us is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.
Other than as disclosed herein, there is no pending litigation
or proceeding involving any of our directors or executive officers to which
indemnification is required or permitted, and we are not aware of any threatened
litigation or proceeding that may result in a claim for indemnification.
SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND
MANAGEMENT
Security Ownership of Certain Beneficial Owners and
Management
The following table sets forth, as of the filing of the 2015
annual report, the stock
ownership of (i) each of our executive officers and directors, (i) of all our
executive officers and directors as a group, and (iii) of each person known by
us to be a beneficial owner of 5% or more of our common stock. Except as
otherwise noted, each person listed below is the sole beneficial owner of the
shares and has sole investment and voting power of such shares. No person listed
below has any option, warrant or other right to acquire additional securities of
the Company, except as may be otherwise noted. Unless otherwise specified, the
address of each of the persons set forth below is in care of Leatt Corporation,
50 Kiepersol Drive, Atlas Gardens, Contermanskloof Road, Durbanville, Western
Cape, South Africa, 7441.
|
Title of Class
|
Name &
|
Office, If Any
|
Amount and
|
Percent of
|
Common Stock,
|
Class A Voting
|
Address of
|
|
Nature of
|
Class
(3)
|
$0.001 par
|
Convertible
|
Beneficial
|
|
Beneficial
|
|
value
|
Preferred Stock,
|
Owner
|
|
Ownership
(2)
|
|
|
$0.001 par
|
|
|
|
|
|
value
(1)
|
|
|
|
|
Officers and Directors
|
|
|
|
|
|
X
|
-
|
Dr. Christopher J.
|
Founder,
|
2,045,903
|
39.34%
|
|
|
Leatt
(4)
|
Innovation Officer
|
|
|
|
|
|
and
|
|
|
-
|
X
|
|
Chairman
|
96,000
|
80.00%
|
X
|
-
|
Jeffrey J. Guzy
(5)
|
Director
|
35,667
|
0.69%
|
-
|
-
|
Sean Macdonald
(6)
|
Chief Executive
|
78,000
|
1.50%
|
|
|
|
Officer, President
|
|
|
|
|
|
and Director
|
|
|
X
|
-
|
All officers and
|
|
2,159,570
|
41.53%
|
-
|
X
|
directors as a
|
|
96,000
|
80.00%
|
|
|
group (persons
|
|
|
|
|
|
named above)
|
|
|
|
|
|
5% Shareholders
|
|
|
|
X
|
-
|
Jean-Pierre De
|
Advisor
|
488,317
|
9.39%
|
-
|
X
|
Villiers
|
|
24,000
|
20.00%
|
X
|
|
Alfred Bjorn
|
|
460,800
|
8.86%
|
|
|
Christensen
|
|
|
|
(1)
|
The Preferred Stock votes with the Common Stock at a vote
of 100-for-one, subject to adjustments resulting from any future stock
splits. The Preferred Stock has priority over the Common Stock in any
liquidation preferences but no dividend rights (except as may be declared
by the Board). The Common Stock has dividend rights in respect of any
dividend distributions when and if declared and paid by the Company. The
Common Stock has a claim to any liquidation distribution, subject to the
priority claim of the Preferred Stock. No dividends have been paid to date
on any securities. There are no other classes of equity securities
authorized and issued.
|
|
|
(2)
|
Beneficial Ownership is determined in accordance with the
rules of the U.S. Securities and Exchange Commission or SEC and
generally includes voting or investment power with respect to securities.
Each of the beneficial owners listed above has direct ownership of and
sole voting power and investment power with respect to the shares of our
common stock.
|
|
|
(3)
|
On the filing date of the 2015 Annual Report and after giving effect to
the Companys 1-for-25 reverse stock split effected on September 20, 2012
(the Reverse Split), the Company had 28,000,000 shares of common stock
authorized with 5,231,823 shares issued and outstanding, and 1,120,000
shares of Preferred Stock authorized with 120,000 shares issued and
outstanding. For each Beneficial Owner above, any options exercisable within 60
days have been included in the denominator.
|
(4)
|
Includes a vested 5-year option to purchase 52,000 shares
of the Companys common stock at $1.00 per share, issued to Dr. Leatt
under the Companys 2011 Plan after giving effect to the Reverse
Split.
|
|
|
(5)
|
Includes a vested 5-year option to purchase 9,000 shares
of the Companys common stock at $1.00 per share, issued to Mr. Guzy under
the Companys 2011 Plan. An additional 6,000 shares are slated to vest in
two equal parts on February 14, 2016 and 2017.
|
|
|
(6)
|
Represents a vested 5-year option to
purchase 78,000 shares of the Companys common stock at $1.00 per share,
issued to Mr. Macdonald under the Companys 2011 Plan after giving effect
to the Reverse Split.
|
TRANSACTIONS WITH RELATED PERSONS,
PROMOTERS AND
CERTAIN CONTROL PERSONS
Transactions with Related Persons
The following includes a summary of transactions since the
beginning of the last fiscal year, or any currently proposed transaction, in
which we were or are to be a participant and the amount involved exceeded or
exceeds $120,000, and in which any related person had or will have a direct or
indirect material interest (other than compensation described under Executive
Compensation). We believe the terms obtained or consideration that we paid or
received, as applicable, in connection with the transactions described below
were comparable to terms available or the amounts that would be paid or
received, as applicable, in arms-length transactions.
On March 1, 2006, we entered into a Licensing Agreement with
Xceed Holdings (formerly, Leatt Brace Holdings), a South African company that is
controlled by Dr. Leatt, the Companys Chairman, and by Mr. De Villiers until
his resignation on August 29, 2006. Under the terms of the Licensing Agreement,
we are obligated to pay Xceed Holdings 4% of all sales revenue billed and
received by us, on a quarterly basis based on sales of the previous quarter. In
addition, pursuant to a separate license agreement between us and Mr. De
Villiers, we are obligated to pay a royalty fee of 1% of all our billed and
received sales revenue, in quarterly installments, based on sales of the
previous quarter, to a trust that is beneficially owned and controlled by Mr. De
Villiers. Royalties totaled $480,689 and $465,316 for the years ended December
31, 2015 and 2014, respectively.
In July 2015, the Company entered into a consulting agreement
with Innovate Services Limited, a Seychelles limited company in which, Dr.
Christopher Leatt, the Companys founder and chairman, is an indirect
beneficiary. Pursuant to the terms of the Consulting Agreement, Innovate has
agreed to serve as the Companys exclusive research, development and marketing
consultant in exchange for a monthly fee of $35,639; provided that Dr. Leatt
personally performs the services to be performed by Innovate under the
Agreement, pursuant to a separate employment agreement between Innovate and Dr.
Leatt. The parties further agreed that all intellectual property generated in
connection with the Services provided under the Consulting Agreement will be the
sole property of the Company. The Consulting Agreement is effective as of May
15, 2015, and will continue unless terminated by either party in accordance with
its terms. Either party has the right to terminate the Consulting Agreement upon
6 months' prior written notice, except that the Consulting Agreement may be
terminated immediately without notice if the Services to performed under the
Consulting Agreement cease to be performed by Dr. Leatt or for any other
material breach of the Agreement by any of the parties. The parties have agreed
to settle any dispute under the Consulting Agreement through arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association (AAA), and that the resulting arbitration award will be final and
binding on both parties and will not be subject to any appeal.
Simultaneously with the closing of the Consulting Agreement,
the Company also entered into a Side Letter Agreement, dated July 8, 2015, with
Dr. Leatt, pursuant to which the parties agreed to terminate Dr. Leatts
existing employment agreement, dated as of May 15, 2015, with the Company in its
entirety, in lieu of Dr. Leatt undertaking to perform the services under the
Consulting Agreement.
Under the terms of the Side Letter, Dr. Leatt also agreed,
among other things: (1) not to perform services similar to the services provided
under the Consulting Agreement for any current or future, direct or indirect
competitor of the Company or any similar company; (2) not to solicit any current
or future employees of the Company for employment with Innovate or any other
entity with which he may become affiliated, or to contact or solicit any current
or future stockholder or investor of the Company in connection with any matter
that is not directly related to the ongoing or future business operations of the
Company; and (3) that he will apprise the Company of any business opportunity
that he becomes aware of that could benefit the Company so that the Company, can
in its sole discretion, make a determination regarding whether to pursue such
opportunity in the best interest of the Company and its stockholders. Dr. Leatt
further agreed to continue dedicating a majority of his time on matters related
to performance of his duties as a director of the Company and to the fulfillment
of his obligations to the Companys research and development efforts under the
Consulting Agreement, and the Company will have the right to adjust the amount
of the fees payable under the Consulting Agreement to the extent of any
substantial diminution in his fulfillment of such duties and obligations.
Except as set forth in our discussion above, none of our
directors, director nominees or executive officers has been involved in any
transactions with us or any of our directors, executive officers, affiliates or
associates which are required to be disclosed pursuant to the rules and
regulations of the SEC.
Policies and Procedures for Review, Approval or Ratification
of Transactions with Related Persons
As we increase the size of our board of directors to include
additional independent directors, we expect to prepare and adopt a written
related-person transactions policy that sets forth our policies and procedures
regarding the identification, review, consideration and approval or ratification
of related-persons transactions. For purposes of our policy only, a
related-person transaction will be a transaction, arrangement or relationship
(or any series of similar transactions, arrangements or relationships) in which
we and any related person are participants involving an amount that exceeds
$120,000. Transactions involving compensation for services provided to us as an
employee, director, consultant or similar capacity by a related person will not
be covered by this policy. A related person will be any executive officer,
director or a holder of more than five percent of our common stock, including
any of their immediate family members and any entity owned or controlled by such
persons.
We anticipate that, where a transaction has been identified as
a related-person transaction, the policy will require management to present
information regarding the proposed related-person transaction to our audit
committee (or, where approval by our audit committee would be inappropriate, to
another independent body of our board of directors) for consideration and
approval or ratification. Managements presentation will be expected to include
a description of, among other things, the material facts, the direct and
indirect interests of the related persons, the benefits of the transaction to us
and whether any alternative transactions are available.
To identify related-person transactions in advance, we are
expected to rely on information supplied by our executive officers, directors
and certain significant stockholders. In considering related-person
transactions, our board of directors will take into account the relevant
available facts and circumstances including, but not limited to:
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the risks, costs and benefits to us;
|
|
|
the impact on a directors independence in the event the
related person is a director, immediate family member of a director or an
entity with which a director is affiliated;
|
|
|
the terms of the transaction;
|
|
|
the availability of other sources for comparable services
or products; and
|
|
|
the terms available to or from, as the case may be,
unrelated third parties or to or from our employees generally.
|
We also expect that the policy will require any interested
director to excuse himself from deliberations and approval of the transaction in
which the interested director is involved.
Promoters and Certain Control Persons
We did not have any promoters at any time during the past five
fiscal years.
PROPOSAL 1
ELECTION OF DIRECTORS
The Board is responsible for establishing broad corporate
policies and monitoring the overall performance of the Company. It selects our
executive officers, delegates authority for the conduct of our day-to-day
operations to those officers, and monitors their performance. Members of the
Board keep themselves informed of our business by participating in Board and
Committee meetings, by reviewing analyses and reports, and through discussions
with the Chairman and other officers.
There are currently three directors serving on the Board. At
the Annual Meeting, three directors will be elected. The individuals who have
been nominated for election to the Board at the Annual Meeting are listed in the
table below. Each of the nominees is a current director of the Company.
If, as a result of circumstances not now known or foreseen, any
of the nominees is unavailable to serve as a nominee for director at the time of
the Annual Meeting, the holders of the proxies solicited by this Proxy Statement
may vote those proxies either (i) for the election of a substitute nominee who
will be designated by the proxy holders or by the present Board or (ii) for the
balance of the nominees, leaving a vacancy. The Board has no reason to believe
that any of the nominees will be unwilling or unable to serve, if elected as a
director. The four nominees for election as directors are uncontested. In
uncontested elections, directors are elected by majority of the votes cast at the Annual Meeting.
Proxies
submitted on the accompanying proxy card will be voted for the election of the
nominees listed below, unless the proxy card is marked otherwise
.
The Board of Directors recommends a vote FOR the election of
the nominees listed below.
The names, the positions with the Company and the ages as of
the Record Date of the individuals who are our nominees for election as
directors are:
Name
|
|
Age
|
|
Position with the Company
|
|
Term as Director
|
Dr. Christopher J. Leatt
|
|
48
|
|
Chairman of the Board
|
|
March 2005 Present
|
Sean Macdonald
|
|
39
|
|
Director
|
|
November 2010 Present
|
Jeffrey J. Guzy
|
|
65
|
|
Director
|
|
April 2007 Present
|
Director Qualifications
The Board has identified particular qualifications, attributes,
skills and experience that are important to be represented on the board as a
whole, in light of our current needs and business priorities. The Board believes
that each director is a recognized person of high integrity with a proven record
of success in his or her field. Each director demonstrates innovative thinking,
familiarity with and respect for corporate governance requirements and
practices, an appreciation of multiple cultures and a commitment to the business
and operations of the Company. In addition to the foregoing qualifications, the
Board has assessed the intangible qualities including the directors ability to
ask difficult questions and, simultaneously, to work collegially. The Board also
considers diversity of age, cultural background and professional experiences in
evaluating candidates for Board membership. Diversity is important because a
variety of points of view contribute to a more effective decision-making
process.
Set forth below is a tabular disclosure summarizing some of the
specific qualifications, attributes, skills and experiences of our directors.
Name
|
Title
|
Qualifications
|
Dr. Christopher James Leatt
|
Founder, Chairman and Research & Development
Consultant
|
|
|
Dr. Leatt holds a Bachelor of Medicine and Bachelor of
Surgery Degree and is the inventor of the Leatt Brace® and the Founder of
the Company.
|
|
|
|
|
|
|
|
|
|
Main consultant for the Companys research and
development department and has an intimate knowledge of the Companys
innovative products.
|
|
|
|
|
|
|
|
|
|
He contributes invaluable long-term knowledge of the
Companys business and operations and extensive experience in the
industry.
|
|
|
|
|
|
Sean Macdonald
|
CEO, CFO, President and Director
|
|
|
Mr. Macdonald is a registered Chartered Accountant and
holds a Bachelor of Commerce Degree in Finance and Information Systems and
a Post-Graduate Diploma in Accounting.
|
|
|
|
|
|
|
|
|
|
His invaluable experience in finance and accounting
provides insight for the implementation of effective operational,
financial and strategic leadership of the Company.
|
|
|
|
|
|
Jeffrey Joseph Guzy
|
Director
|
|
|
Through his Masters Degree in Business Administration in
Strategic Planning & Management and his knowledge of U.S. capital
markets, Mr. Guzy provides invaluable guidance and perspective to the
Board.
|
|
|
|
|
|
|
|
|
|
He has also served as the Companys President and has
invaluable long-term knowledge of the Companys business and
operations.
|
General Information
For information as to the shares of the Common Stock held by
each nominee, see Security Ownership of Certain Beneficial Owners and
Management, above.
See Directors and Executive Officers above for biographical
summaries for each of our director nominees.
All directors will hold office for the terms indicated, or
until their earlier death, resignation, removal or disqualification, and until
their respective successors are duly elected and qualified. There are no
arrangements or understandings between any of the nominees, directors or
executive officers and any other person pursuant to which any of our nominees,
directors or executive officers have been selected for their respective
positions. No nominee, member of the Board or executive officer is related to
any other nominee, member of the Board or executive officer.
PROPOSAL 2
RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS
The Audit Committee has selected Fitzgerald & Co, CPAs,
P.C. (Fitzgerald) to serve as the independent registered public accounting
firm of the Company for the fiscal year ending December 31, 2016. Fitzgerald was
the Companys independent registered public accounting firm for the fiscal year
ended December 31, 2015.
We are asking our stockholders to ratify the selection of
Fitzgerald as our independent registered public accounting firm. Although
ratification is not required by our bylaws or otherwise, the Board is submitting
the selection of Fitzgerald to our stockholders for ratification as a matter of
good corporate practice. In the event our stockholders fail to ratify the
appointment, the Audit Committee may reconsider this appointment.
The Company has been advised by Fitzgerald that neither the
firm nor any of its associates had any relationship with the Company other than
the usual relationship that exists between independent registered public
accounting firms and their clients during the last fiscal year. Representatives
of Fitzgerald are expected to attend the Annual Meeting with the opportunity to
make a statement and/or respond to appropriate questions from shareholders
present at the Annual Meeting.
Services and Fees of Independent Public Accounting Firms
The following is a summary of the fees billed to the Company
for professional services rendered for the fiscal years ended December 31, 2015
and 2014:
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
Audit Fees
|
$
|
96,000
|
|
$
|
96,000
|
|
Audit-Related Fees
|
|
12,000
|
|
|
11,714
|
|
Tax Fees
|
|
15,950
|
|
|
8,411
|
|
All Other Fees
|
|
--
|
|
|
0
|
|
TOTAL
|
$
|
123,950
|
|
$
|
116,125
|
|
Audit Fees consisted of fees billed for professional services
rendered by the principal accountant for the audit of our annual financial
statements and review of the financial statements included in our Form 10-K and
10-Qs or services that are normally provided by the accountant in connection
with statutory and regulatory filings or engagements.
Audit-Related Fees consisted of fees billed for assurance and
related services by the principal accountant that were reasonably related to the
performance of the audit or review of our financial statements and are not
reported under the paragraph captioned Audit Fees above.
Tax Fees consisted of fees billed for professional services
rendered by the principal accountant for tax returns preparation.
All Other Fees consisted of fees billed for products and
services provided by the principal accountant, other than the services reported
above under other captions of this Item 14.
Pre-Approval Policies and Procedures
Under the Sarbanes-Oxley Act of 2002, all audit and non-audit
services performed by our auditors must be approved in advance by our board of
directors to assure that such services do not impair the auditors independence
from us. In accordance with its policies and procedures, our board of directors
pre-approved the audit and non-audit services performed by Fitzgerald & Co,
CPAs, P.C. for our financial statements as of and for the year ended December
31, 2016.
The Board of Directors recommends a vote FOR ratification of
the selection of Fitzgerald as the Companys independent registered public
accounting firm for the fiscal year ending December 31, 2016.
PROPOSAL 3
ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION
The Dodd-Frank Wall Street Reform and Consumer Protection Act
of 2010 enables our stockholders to vote to approve, on an advisory (nonbinding)
basis, the compensation of our named executive officers as disclosed in this
Proxy Statement in accordance with the SECs rules.
Our executive compensation programs are designed to attract,
motivate, and retain our named executive officers, who are critical to our
success. Under these programs, our named executive officers are rewarded for the
achievement of specific annual, long-term and strategic goals, business unit
goals, corporate goals, and the realization of increased stockholder value.
Our Compensation Committee continually reviews the compensation
programs for our named executive officers to ensure they achieve the desired
goals of aligning our executive compensation structure with our stockholders
interests and current market practices. We are asking our stockholders to
indicate their support for our named executive officer compensation as described
in the Compensation Discussion and Analysis and related compensation tables.
This proposal, commonly known as a say-on-pay proposal, gives our stockholders
the opportunity to express their views on our named executive officers
compensation. This vote is not intended to address any specific item of
compensation, but rather the overall compensation of our named executive
officers and the philosophy, policies and practices described in this proxy
statement. Accordingly, we will ask our stockholders to vote for the approval of
the compensation of the named executive officers, as disclosed in this Proxy
Statement pursuant to the compensation disclosure rules of the SEC.
The say-on-pay vote is advisory, and therefore not binding on
the Company, the Compensation Committee or our Board. Our Board and our
Compensation Committee value the opinions of our stockholders and to the extent
there is any significant vote against the approval the named executive officer
compensation as disclosed in this Proxy Statement, they will consider our
stockholders concerns and the Compensation Committee will evaluate whether any
actions are necessary to address those concerns.
The Board of Directors recommends a vote FOR the approval of
the compensation of our named executive officers, as disclosed in the
Compensation Discussion and Analysis and related compensation tables.
STOCKHOLDER PROPOSALS FOR THE 2017 ANNUAL MEETING
If you wish to have a proposal included in our proxy statement
for next years annual meeting in accordance with Rule 14a-8 under the Exchange
Act, your proposal must be received by the Corporate Secretary of Leatt
Corporation at Suite 109, Private Bag X3, Bloubergrant, 7443, Western Cape,
South Africa, no later than the close of business on December 31, 2016. A
proposal which is received after that date or which otherwise fails to meet the
requirements for stockholder proposals established by the SEC will not be
included. The submission of a stockholder proposal does not guarantee that it
will be included in the proxy statement.
Stockholder proposals to be brought before the 2017 Annual
Meeting, made outside the Rule 14a-8 processes, must be submitted to the Company
pursuant to Rule 14a-8, no later than December 31, 2016, or will be considered
untimely and entitle the Company to discretionary voting under Rule 14a-4.
ANNUAL REPORT ON FORM 10-K
We will provide without charge to each person solicited by
this Proxy Statement, on the written request of such person, a copy of our
Annual Report on Form 10-K, including the financial statements and financial
statement schedules, as filed with the SEC for our most recent fiscal year.
Such written requests should be directed to Leatt Corporation, c/o Corporate
Secretary, Suite 109, Private Bag X3, Bloubergrant, 7443, Western Cape, South
Africa. A copy of our Annual Report on Form 10-K is also made available on our
website at
http://www.leatt-corp.com
after it is filed with the SEC.
OTHER MATTERS
As of the date of this Proxy Statement, the Board has no
knowledge of any business which will be presented for consideration at the
Annual Meeting other than the election of directors, the ratification of the
appointment of the independent public accounting firm of the Company and the
advisory vote on executive compensation. Should any other matters be properly
presented, it is intended that the enclosed proxy card will be voted in
accordance with the best judgment of the persons voting the proxies.
September 22, 2016
|
By Order of the Board of Directors
|
|
|
|
/s/
Lara-Jane Pretorius
|
|
Lara-Jane Pretorius
|
|
Corporate Secretary
|
LEATT CORPORATION
ANNUAL MEETING OF
STOCKHOLDERS
TO BE HELD ON NOVEMBER 3, 2016
This Proxy is Solicited on Behalf of the Board of Directors
The undersigned stockholder of Leatt Corporation, a Nevada
corporation (the Company), acknowledges receipt of the Notice of Annual
Meeting of Stockholders and Proxy Statement, dated September 22, 2016, and
hereby constitutes and appoints Sean Macdonald and Lara-Jane Pretorius, or
either of them acting singly in the absence of the other, with full power of
substitution in either of them, the proxies of the undersigned to vote, as
designed below and with the same force and effect as the undersigned, all shares
of the Companys Common Stock which the undersigned is entitled to vote at the
2016 Annual Meeting of Stockholders to be held on November 3, 2016, and at any
adjournment or postponement thereof, hereby revoking any proxy or proxies
heretofore given and ratifying and confirming all that said proxies may do or
cause to be done by virtue thereof with respect to the following matters:
The undersigned hereby instructs said proxies or their
substitutes:
1.
|
Elect as Directors the nominees listed below The Board
recommends a vote
FOR each of
the listed
nominees:
|
|
1
|
Christopher J. Leatt
|
FOR
|
[_]
|
WITHHOLD
|
[_]
|
|
|
|
|
|
|
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2
|
Sean Macdonald
|
FOR
|
[_]
|
WITHHOLD
|
[_]
|
|
|
|
|
|
|
|
|
3
|
Jeffrey J. Guzy
|
FOR
|
[_]
|
WITHHOLD
|
[_]
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2.
|
Ratify the appointment of Fitzgerald as the Companys
independent public accounting firm for fiscal year ending December 31,
2016 The Board recommends a vote
FOR
this
Proposal.
|
|
FOR
|
[_]
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AGAINST
|
[_]
|
ABSTAIN
|
[_]
|
3.
|
Approve the compensation of the Companys named executive
officers as disclosed in this Proxy Statement The Board recommends a
vote
FOR
this Proposal.
|
|
FOR
|
[_]
|
AGAINST
|
[_]
|
ABSTAIN
|
[_]
|
4.
|
In their discretion, the proxies are authorized to vote
upon such other business as may properly come before the meeting, and any
adjournment or postponement thereof.
|
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE
MANNER DIRECTED; IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED
FOR
ALL NOMINEES,
FOR
THE RATIFICATION OF THE
SELECTION OF FITZGERALD AS THE COMPANYS INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM, AND
FOR
THE APPROVAL OF THE COMPANYS
EXECUTIVE COMPENSATION. IN THEIR DIRECTION, THE PROXIES ARE ALSO AUTHORIZED TO
VOTE UPON SUCH OTHER MATTERS AS MAY PROPERLY COME BEFORE THE MEETING, INCLUDING
THE ELECTION OF ANY PERSON TO THE BOARD OF DIRECTORS WHERE A NOMINEE NAMED IN
THE PROXY STATEMENT DATED SEPTEMBER 22, 2016 IS UNABLE TO SERVE OR WILL NOT
SERVE.
I (we) acknowledge receipt of the Notice of Annual Meeting of
Stockholders and the Proxy Statement dated September 22, 2016, and the 2015
annual report to Stockholders and ratify all that the proxies, or either of
them, or their substitutes may lawfully do or cause to be done by virtue hereof
and revoke all former proxies.
Please sign, date and mail this proxy immediately in the
enclosed envelope.
|
Name
____________________________________________________________________
|
|
|
|
Name
(if joint)
_____________________________________________________________
|
|
|
|
Date _____________, 2016
|
|
|
|
Please sign your name exactly as it appears hereon. When
signing as attorney, executor, administrator, trustee or guardian, please
give your full title as such. When signing as joint tenants, all parties
in the joint tenancy must sign. When a proxy is given by a corporation, it
should be signed by an authorized officer of the corporation. No postage
is required if returned in the enclosed envelope.
|
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