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
(Amendment
No. )
Filed by
the registrant
x
Filed by
a party other than the registrant
¨
Check the
appropriate box:
¨
Preliminary proxy
statement
|
|
¨
Confidential, for Use of the
Commission Only
(as
permitted by Rule 14a-6 (e) (2) )
|
x
Definitive proxy
statement
¨
Definitive additional
materials
¨
Soliciting material
pursuant to § 240.14a-12
|
|
|
WEBMEDIABRANDS
INC.
(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):
¨
|
Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
|
|
(1)
|
Title
of each class of securities to which transaction applies:
|
|
(2)
|
Aggregate
number of securities to which transaction applies:
|
|
(3)
|
Per
unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (set forth the amount on which the filing fee is
calculated and state how it was determined):
|
|
(4)
|
Proposed
maximum aggregate value of transaction:
|
¨
|
Fee
paid previously with preliminary
materials.
|
¨
|
Check
box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its
filing.
|
|
(1)
|
Amount
previously paid:
|
|
(2)
|
Form,
schedule or registration statement no.:
|
|
(4)
|
Date
filed:
April
28, 2010
|
WEBMEDIABRANDS
INC.
50
Washington Street, 9
th
Floor
Norwalk,
Connecticut 06854
(203)
662-2800
NOTICE
OF ANNUAL MEETING OF STOCKHOLDERS
To
Be Held on June 3, 2010
You are
hereby cordially invited to attend the 2010 Annual Meeting of Stockholders of
WebMediaBrands Inc., a Delaware corporation, at the offices of WebMediaBrands
Inc. located at 475 Park Avenue South, 9th Floor, New York, New York on
June 3, 2010, at 10:00 a.m. local time. This meeting is being held for the
following purposes:
1. To
elect six directors to the Board of Directors of WebMediaBrands Inc. with terms
expiring at the Annual Meeting of Stockholders to be held in 2011 or until their
successors are duly elected;
2. To
approve the appointment of Grant Thornton LLP, independent registered public
accounting firm, to act as independent auditors for WebMediaBrands Inc. for the
fiscal year ending December 31, 2010; and
3. To
transact such other business as may properly come before the meeting, or any
adjournment or adjournments thereof.
The
foregoing items of business are more fully described in the Proxy Statement
accompanying this Notice of Annual Meeting of Stockholders. Only stockholders of
record at the close of business on April 23, 2010 are entitled to receive
notice of, and to vote at, the Annual Meeting or any adjournment or adjournments
thereof.
YOUR
VOTE IS IMPORTANT
Whether
or not you expect to be present at the annual meeting, please complete, date,
sign and return the enclosed proxy promptly in the postage-prepaid envelope
provided for your convenience. If you attend the annual meeting, you may revoke
your proxy and vote your shares in person if you wish.
|
By
Order of the Board of Directors,
and
Chief Executive Officer
|
WebMediaBrands
Inc.
50
Washington Street, 9
th
Floor
Norwalk,
Connecticut 06854
(203)
662-2800
PROXY
STATEMENT FOR ANNUAL MEETING OF STOCKHOLDERS
To
Be Held on June 3, 2010
The Board
of Directors of WebMediaBrands Inc. (the
“
Company
”)
is soliciting proxies from the Company’s stockholders for the 2010 Annual
Meeting of Stockholders to be held on June 3, 2010.
You are
entitled to vote at the meeting if you were a stockholder of record at the close
of business on April 23, 2010. On or about May 7, 2010, the Company
will begin mailing to all such stockholders a proxy card, this proxy statement
and the Company’s 2009 Annual Report. On April 23, 2010, there were
37,471,059 shares of the Company’s common stock outstanding, which are the only
shares of the Company’s stock entitled to vote at this meeting. Each such share
of common stock will be entitled to one vote at the meeting.
Your
signed proxy card will appoint Alan M. Meckler and Mitchell S. Eisenberg, as
proxy holders, or your representatives, to vote your shares.
If you
sign and return your proxy card without giving voting directions, the proxy
holders will vote your shares:
(i)
for
all of the nominees for
director listed on pages 2 and 3; and
(ii)
for
the appointment of
Grant Thornton LLP as independent auditors for the fiscal year ending
December 31, 2010.
The proxy
card permits you to direct the proxy holders to:
(i)
withhold your votes from particular nominees; and/or
(ii) vote
“for” or “against” or “abstain” from voting on the appointment of auditors
referred to above.
Signing
and returning your proxy card will not prevent you from voting in person at the
meeting. If you vote in person at the meeting, your previously voted proxy will
be automatically revoked. You may also revoke your proxy any time before it is
voted by delivering written notice prior to the meeting to:
WebMediaBrands
Inc.
50
Washington Street, 9
th
Floor
Norwalk,
Connecticut 06854
Attn:
Corporate Secretary
If you
submit more than one proxy, each later-dated proxy will revoke all previous
proxies.
The Board
of Directors expects all nominees named below to be available for election. In
case any nominee is not available, the proxy holder may vote your shares for a
substitute if you have submitted a signed proxy card.
As far as
the Company knows, the only matters to be brought before the meeting are those
referred to in this proxy statement. As to any other matters presented at the
meeting, if you send in a signed proxy card, the proxy holder may vote your
shares at their discretion.
No
business may be conducted at the meeting unless a majority of all outstanding
shares entitled to vote are either present at the meeting in person or
represented by proxy. All matters voted on at the meeting will be determined by
the “for” vote of a majority of the shares present at the meeting in person or
represented by proxy and entitled to vote on the subject matter of the vote,
except for the election of directors, which will be determined by the “for” vote
of a plurality of such shares.
Abstentions
and broker non-votes are counted as shares present for determining if there are
sufficient shares present to hold the meeting and are entitled to vote on
matters at the meeting. Therefore, abstentions have the same legal effect as a
vote against a matter.
A list of
stockholders entitled to vote at the meeting will be available at the meeting
and for ten days prior to the meeting, between the hours of 9:00 a.m. and 5:00
p.m., at the Norwalk offices of the Company, 50 Washington Street, 9
th
Floor, Norwalk, Connecticut 06854, by contacting the Corporate
Secretary.
ITEM 1. ELECTION OF
DIRECTORS
Item 1
is the election of all six current members of the Company’s Board of Directors
to another term. The persons named in the enclosed proxy intend to vote the
proxy for the election of each of the six nominees, unless you indicate on the
proxy card that your vote should be withheld from any or all such nominees. Each
nominee elected as a director will continue in office until his successor has
been elected, or until his death, resignation or retirement.
The Board
of Directors has proposed the following nominees for election as directors with
terms expiring at the Annual Meeting in 2011: Alan M. Meckler, Michael J.
Davies, Gilbert F. Bach, William A. Shutzer, John R. Patrick and Wayne A.
Martino.
The
Board of Directors recommends a vote FOR the election of these nominees as
directors.
The
following table sets forth information with respect to each nominee for
director. Except as otherwise indicated, each nominee has held his present
occupation or occupations for more than the past five years and has not been
principally employed by any subsidiary or affiliate of the Company. There are no
family relationships among any nominee, director or executive officer of the
Company and there are no arrangements or understandings between the director
nominees and any other person pursuant to which the director nominees were
selected as directors or nominees. References below to the nominees’ respective
ages are as of the date of the Annual Meeting. References below to periods of
service to the Company include, where applicable, service to the Company’s
predecessor business, internet.com LLC, prior to its 1999 merger with and into
the Company.
Name
|
|
Age
|
|
Principal
Occupation or
Occupations
and Directorships
|
Alan
M. Meckler
|
|
64
|
|
Alan
M. Meckler has been Chairman of the Board and Chief Executive Officer of
the Company since its inception. Previously, Mr. Meckler had been Chairman
of the Board of Mecklermedia Corporation from 1973 and was its Chief
Executive Officer from December 1993 until it was acquired by Penton Media
in November 1998. He also served as President of Mecklermedia from 1971
through November 1998. Among other experiences, qualifications, attributes
and skills, Mr. Meckler’s executive experience in the digital media
industry and his unique perspective on the Company led to the conclusion
of the Nominating and Corporate Governance Committee and of the full
Board that he should serve as a director of the
Company.
|
|
|
|
|
|
Michael
J. Davies
|
|
65
|
|
Michael
J. Davies has been a director of the Company since its inception. Mr.
Davies has been President of Fox Hill Consulting LLC since February 1998
and has also been a director of Boxwood Technology, Inc. since May 2000.
He was Chairman and CEO of Amazing Media, Inc. from February 2002 until
January 2005. From February 2001 until March 2002 he was Chairman of
Saltmine, Inc. Mr. Davies was a director of PROVANT, Inc. from 1998 to
2001. Mr. Davies was also a director of Mecklermedia from January 1996
until it was acquired by Penton Media in November 1998. He was a special
limited partner with American Business Partners from July 1997 to April
1998. Prior to that he was a Managing Director, Corporate Finance, of the
investment bank Legg Mason Wood Walker, Incorporated from 1993 to 1996.
Before joining Legg Mason, Mr. Davies was the Publisher of the Baltimore
Sun from 1990 through 1993. Among other experiences, qualifications,
attributes and skills, Mr. Davies’ knowledge and experience in corporate
finance as well as his prior experiences in leading media and Internet
companies led to the conclusion of the Nominating and Corporate Governance
Committee and the full Board that he should serve as Chairman of the
Compensation Committee and a director of the
Company.
|
Name
|
|
Age
|
|
Principal
Occupation or
Occupations
and Directorships
|
Gilbert
F. Bach
|
|
78
|
|
Gilbert
F. Bach has been a director of the Company since its inception. Mr. Bach
retired on January 1, 1997 from Lehman Brothers, where he held
various positions from 1979 through 1996, most recently as a Managing
Director. From 1955 to 1979, Mr. Bach held various positions at Hirsch
& Co. and Loeb Rhoades & Co. Mr. Bach was also a director of
Mecklermedia from February 1997 until it was acquired by Penton Media in
November 1998. Among other experiences, qualifications, attributes and
skills, Mr. Bach’s experience in the areas of finance, marketing and
securities led to the conclusion of the Nominating and Corporate
Governance Committee and the full Board that he should serve as
Chairman of the Nominating and Corporate Governance Committee and a
director of the Company.
|
|
|
|
|
|
William
A. Shutzer
|
|
63
|
|
William
A. Shutzer has been a director of the Company since January 2000. Mr.
Shutzer has been a partner of Evercore Group Holdings, a financial
advisory and private equity firm since 2004. He previously served as
a Managing Director of Lehman Brothers from 2000 through 2003, a Partner
in Thomas Weisel Partners LLC from 1999 through 2000, as Executive Vice
President of ING Baring Furman Selz LLC from 1998 through 1999, as
President of Furman Selz Inc. from 1995 through 1997, and as a Managing
Director of Lehman Brothers and its predecessors from 1978 through
1994. Mr. Shutzer is also a member of the board of directors of
Tiffany & Co., and Evercore Trust Co. Among other experiences,
qualifications, attributes and no skills, Mr. Shutzer’s knowledge of and
experience in finance, investor relations and strategic development led to
the conclusion of the Nominating and Corporate Governance Committee and
the full Board that he should serve as a director of the
Company.
|
|
|
|
|
|
John
R. Patrick
|
|
64
|
|
John
R. Patrick has been a director of the Company since January 2003. Mr.
Patrick has been President of Attitude LLC since 2001. Prior to that, he
worked at IBM Corporation from 1967 to 2001. Mr. Patrick was Vice
President of Internet Technology at IBM from 1995 to 2001. He is a member
of the board of directors of Knovel Corporation, OCLC, Danbury Health
Systems and Danbury Hospital. Among other experiences, qualifications,
attributes and skills, Mr. Patrick’s knowledge of and experience in the
Internet industry and ability to serve as Audit Committee financial expert
led to the conclusion of the Nominating and Corporate Governance Committee
and the full Board that he should serve as Chairman of the Audit Committee
and a director of the Company.
|
|
|
|
|
|
Wayne
A. Martino
|
|
50
|
|
Wayne
A. Martino was appointed as a director of the Company in January 2010. Mr.
Martino has been a principal of the law firm Brenner, Saltzman &
Wallman, LLP since 1991. Mr. Martino was formerly a director
of Ziplink, Inc. from 1999 until 2001 and Mecklermedia Corporation
from 1993 until 1998. He has served on the State of
Connecticut Nanotechnology Advisory Panel since 2005 and on the Board
of Trustees of the Hamden Hall Country Day School since
2008. Mr. Martino received a B.A. from American University and a
J.D. from the University of Connecticut Law School. Among other
experiences, qualifications, attributes and skills, Mr. Martino’s
experience in advising clients in business transactions and knowledge of
legal requirements of public companies led to the conclusion of the
Nominating and Corporate Governance Committee and the full Board that he
should serve as a director of the
Company.
|
PRINCIPAL STOCKHOLDERS AND
SECURITY
OWNERSHIP
OF MANAGEMENT
Security
Ownership of Directors, Nominees for Director, Named Executive Officers and all
Directors and Executive Officers as a Group
The
following table sets forth, as of March 31, 2010, information with respect
to the outstanding shares of the Company’s common stock, par value $.01 per
share (the
“
Common
Stock
”),
beneficially owned by each director of the Company, each
nominee for director, the Chief Executive Officer (who is also a director), the
Chief Financial Officer and by all persons presently serving as directors and
officers of the Company as a group. Except as otherwise indicated, all shares
are owned directly. The business address for all of those parties is c/o
WebMediaBrands Inc., 50 Washington Street, 9
th
Floor, Norwalk, CT 06854. For purposes of this table, a person is deemed to have
“beneficial ownership” of any shares as of a given date (i) which such
person has the right to acquire within 60 days after such date, (ii) over
which such person has voting power or (iii) over which such person has
investment power, including disposition power. For purposes of computing the
percentage of outstanding shares held by each person named above on a given
date, any security which such person has the right to acquire within 60 days
after such date is deemed to be outstanding, but is not deemed to be outstanding
for the purpose of computing the percentage ownership of any other
person.
Name
of Beneficial
Owner
|
|
Amount
and
Nature
of
Beneficial
Ownership
|
|
|
Percent
of
Class
|
|
Alan
M. Meckler
|
|
15,802,130
|
(1)
|
|
41.1
|
%
|
|
|
|
William
A. Shutzer
|
|
492,147
|
(2)
|
|
1.3
|
%
|
|
|
|
Gilbert
F. Bach
|
|
246,750
|
(3)
|
|
*
|
|
|
|
|
John
R. Patrick
|
|
290,568
|
(4)
|
|
*
|
|
|
|
|
Michael
J. Davies
|
|
163,193
|
(5)
|
|
*
|
|
|
|
|
Wayne
A. Martino
|
|
63,150
|
|
|
*
|
|
|
|
|
|
|
|
|
Donald
J. O’Neill
|
|
257,868
|
(6)
|
|
*
|
|
|
|
|
All
directors and executive officers as a group (seven
persons)
|
|
17,315,806
|
|
|
45.2
|
%
|
(1)
|
Includes
2,000,000 shares held in the Alan M. Meckler 2009 Grantor Retained Annuity
Trust (the
“
GRAT
”),
a Grantor Retained Annuity Trust, 425,765 shares held by The Meckler
Foundation, Inc., a non-profit charitable foundation founded by
Mr. Meckler and for which he acts as president, 2,808,360 shares held
by Mr. Meckler’s wife and 313,600 shares held in a trust for the
benefit of Mr. Meckler’s mother. Mr. Meckler exercises shared
voting and investment control over all of these shares except the shares
held by the GRAT, over which Mr. Meckler exercises investment control
but not voting control. Also includes 1,072,693 shares issuable upon
exercise of currently exercisable
options.
|
(2)
|
Includes
148,750 shares issuable upon exercise of currently exercisable
options.
|
(3)
|
Includes
169,750 shares issuable upon exercise of currently exercisable
options.
|
(4)
|
Includes
210,568 shares issuable upon exercise of currently exercisable
options.
|
(5)
|
Includes
157,693 shares issuable upon exercise of currently exercisable
options.
|
(6)
|
Includes
257,868 shares issuable upon exercise of currently exercisable
options.
|
Security
Ownership of Certain Beneficial Owners as of March 31, 2010
The following table sets forth, as of
March 31, 2010, information with respect to the outstanding shares of the
Company’s Common Stock beneficially owned by each person (including any “group”
as that term is used in
section 13(d)(3) of the Exchange Act)
who is known to the Company to be the beneficial owner of more than five percent
of any class of the Company’s voting securities and who is not a director or
executive officer of the Company. Except as otherwise indicated, all shares are
owned directly. For purposes of this table, a person is deemed to have
“beneficial ownership” of any shares as of a given date (i) which such
person has the right to acquire within 60 days after such date, (ii) over
which such person has voting power or (iii) over which such person has
investment power, including disposition power. For purposes of computing the
percentage of outstanding shares held by each person named above on a given
date, any security which such person has the right to acquire within 60 days
after such date is deemed to be outstanding, but is not deemed to be outstanding
for the purpose of computing the percentage ownership of any other
person.
|
|
|
|
|
|
|
|
Name
of
Beneficial
Owner
|
|
Address
of
Beneficial
Owner
|
|
Amount
and
Nature
of
Beneficial
Ownership
|
|
|
Percent
of
Class
|
|
|
|
|
Federated
Investors, Inc.
|
|
Federated
Investors Tower
Pittsburgh,
PA 15222-3779
|
|
2,435,116
|
(1)
|
|
6.6%
|
|
|
|
|
Royce &
Associates, LLC
|
|
1414
Avenue of the Americas
New
York, NY 10019
|
|
2,273,087
|
(2)
|
|
6.2%
|
|
|
|
|
S
Squared Technology
|
|
515
Madison Avenue
New
York, NY 10022
|
|
3,739,800
|
(3)
|
|
10.1%
|
(1)
|
Based
upon information set forth in a Schedule 13G filed under the Securities
Exchange Act of 1934 dated February 11, 2010. John F. Donahue, Rhodora J.
Donahue and J. Christopher Donahue, as co-trustees of the trust holding
all shares of Federated, the parent of investment companies holding our
stock, share voting and dispositive
control.
|
(2)
|
Based
upon information set forth in a Schedule 13G filed under the Securities
Exchange Act of 1934 dated January 26,
2010.
|
(3)
|
Based
upon information set forth in a Schedule 13G filed under the Securities
Exchange Act of 1934 dated February 10, 2010. S Squared Technology, a
Delaware limited liability company, and S Squared Technology Partners,
L.P., a Delaware limited partnership, are registered investment advisers.
Seymour L. Goldblatt is the President of each and owns a majority of the
interests in the LLC. Kenneth A. Goldblatt owns a majority of the
interests in the partnership. Both Goldblatts are U.S.
citizens.
|
FURTHER
INFORMATION REGARDING THE BOARD OF DIRECTORS
Director
Independence
Each
year, the Company reviews any and all relationships that each director has with
the Company, and the Board of Directors subsequently reviews those findings in
accordance with the elements of independence set forth in the Nasdaq listing
standards. The Board of Directors has determined that none of the directors has
any material business relationships with the Company, except for the Company’s
Chairman and Chief Executive Officer, Mr. Alan M. Meckler. In June
2009, the Board conducted a review of director independence. As a result of this
review, the Board affirmatively determined that each of the following
non-employee directors is independent and has no relationship with the Company,
except as a director and stockholder: Gilbert F. Bach, Michael J. Davies, John
R. Patrick and William A. Shutzer.
Code
of Business Conduct and Ethics
We have
adopted a World Wide Business Conduct Policy that is designed to promote high
standards of ethical conduct by our directors and employees. The Code
requires that our directors and employees avoid conflicts of interest, comply
with all laws and other legal requirements, conduct business in an honest and
ethical manner, and otherwise act with integrity and in the Company’s best
interest. It includes a code of ethics for our chief executive office and
chief financial and chief accounting officer, and persons performing similar
functions.
As a
mechanism to encourage compliance with the World Wide Business Conduct Policy,
we have established procedures to receive, retain, and address complaints
received regarding accounting or auditing matters. These procedures ensure
that individuals may submit concerns regarding questionable accounting or
auditing matters in a confidential and anonymous manner.
In
addition, our CEO and CFO are subject to additional corporate governance
policies. These policies are available for review under the
Corporate Governance
section
on our Website at
www.webmediabrands.com
.
Board
Leadership Structure and Risk Oversight Role
Our Board
of Directors is led by our Chairman, Mr. Alan M. Meckler. The Board believes
that having our CEO serve as Chairman of the Board is suitable for the Company
at its present stage. Mr. Meckler, who also is our largest stockholder,
possesses detailed and in-depth knowledge of the issues, opportunities and
challenges facing the Company and its business and is well positioned to develop
agendas that ensure the Board’s time and attention are focused on the most
critical matters. Furthermore, the Board believes that having our CEO serve as
Chairman of the Board strengthens the ability of the CEO to develop and
implement strategic initiatives and respond efficiently to various situations.
The Board is aware of potential conflicts that might arise when an insider
chairs the Board, but believes these potential conflicts are offset by the fact
that independent directors comprise the remainder of the Board and each of the
Board’s committees. Additionally, the Board believes Mr. Meckler’s combined role
enables decisive leadership and ensures clear accountability.
As part
of its oversight function, the Board and its committees regularly undertake
reviews of the significant risks in respect of our business. These reviews are
supplemented as necessary by outside professional advisers with expertise in the
substantive areas of our business. The committees facilitate deeper analysis of
various matters and promote regular monitoring of our activities in their
advisory role to the Board. Specifically, the Audit Committee oversees the
Company’s risk policies and processes relating to our financial statements and
financial reporting, as well as liquidity risks, market risks, and the policies
and procedures for monitoring and mitigating these risks. The Audit Committee
also reviews, monitors and decides upon all related party transactions.
Similarly, the Compensation Committee oversees risks related to the Company’s
compensation policies.
The Board
believes that its current structure effectively maintains independent oversight
of management and that having a lead independent director is unnecessary. The
Board has the ability to quickly adjust its leadership structure should business
or managerial conditions change.
Committees
of the Board
The Board
of Directors has established a Compensation Committee, an Audit Committee and a
Nominating and Corporate Governance Committee. Effective January 22, 2010, in
conjunction with the appointment of Wayne A. Martino as a member of the Board of
Directors, Mr. Martino will serve as a member of each of the Audit Committee,
the Compensation Committee and the Nominating and Corporate Governance Committee
of the Board.
The
current members of the Compensation Committee, the Audit Committee and the
Nominating and Corporate Governance Committee are as follows:
|
|
|
|
|
Compensation Committee
|
|
Audit Committee
|
|
Nominating
and Corporate
Governance Committee
|
|
|
|
Gilbert
F. Bach
|
|
Gilbert
F. Bach
|
|
Gilbert
F. Bach
|
Michael
J. Davies
|
|
Michael
J. Davies
|
|
Michael
J. Davies
|
Wayne
A. Martino
|
|
Wayne
A. Martino
|
|
Wayne
A. Martino
|
John
R. Patrick
|
|
John
R. Patrick
|
|
John
R. Patrick
|
William
A. Shutzer
|
|
William
A. Shutzer
|
|
William
A. Shutzer
|
Compensation
Committee
The
Compensation Committee of the Board of Directors is responsible for discharging
the responsibilities of the Board of Directors relating to the compensation of
the Company’s executive officers and advising the Board on the Company’s
compensation philosophy, programs and objectives. The Compensation Committee
oversees the Company’s compensation programs, which include components that are
designed specifically for the Company’s Chief Executive Officer and the Vice
President and Chief Financial Officer. Mr. Davies serves as the Chairman of
the Compensation Committee. The Board has determined the members of the
Compensation Committee are each independent pursuant to Nasdaq listing
standards. The Compensation Committee may delegate its authority to
subcommittees, as the Compensation Committee deems appropriate, so long as any
actions taken by such subcommittees are not otherwise inconsistent with the
obligations and responsibilities of the Compensation Committee. The Company’s
Board of Directors has adopted a written charter for the Compensation Committee
that is available for review under the
Corporate Governance
section
on our Website at
www.webmediabrands.com
.
The Compensation Committee met four times during the fiscal year ended
December 31, 2009.
Consistent
with the listing requirements of Nasdaq, the Compensation Committee is composed
entirely of independent non-management members of the Board of Directors. No
Compensation Committee member participates in any of the Company’s employee
compensation programs. For further discussion on the Compensation Committee see
“
Compensation
Discussion and Analysis
”.
Audit
Committee
The Audit Committee has the
responsibility to review audited financial statements and accounting practices
of the Company, to consider and recommend the employment of, and approve the fee
arrangements with, independent accountants for both audit functions and for
advisory and other consulting services and to oversee the Company’s systems of
disclosure controls and procedures, internal controls over financial reporting
and compliance with ethical standards adopted by the Company. The Board has
determined the members of the Audit Committee are each independent pursuant to
Nasdaq and SEC rules. The Board of Directors has determined that
Mr. John R. Patrick, Chairman of the Audit Committee, qualifies as an
“audit committee financial expert” as defined by the Securities and Exchange
Commission. In making the determination, the Board of Directors considered
Mr. Patrick’s credentials and financial background and found that he was
qualified to serve as the “financial expert.” The Company’s Board of Directors
has adopted a written charter for the Audit Committee that is available for
review under
the
Corporate Governance
section on our Website at
www.webmediabrands.com
.
The Audit Committee met four times
during the fiscal year ended December 31, 2009.
Nominating
and Corporate Governance Committee
The
Nominating and Corporate Governance Committee identifies individuals qualified
to become members of the Board of Directors and recommends such candidates to
the Board and stockholders for consideration. Mr. Gilbert F. Bach has
served as the Chairman of the Nominating and Corporate Governance Committee
since the committee was formed in 2005. The Board has determined the members of
the Nominating and Corporate Governance Committee are each independent pursuant
to Nasdaq listing standards. In considering candidates for election to the
Board, the Nominating and Corporate Governance Committee evaluates the
qualifications and performance of the incumbent directors, including
consideration of whether the director continues to satisfy the minimum
qualifications for director candidates, and reviews the performance of the
director during the preceding term. Absent special circumstances, if the
incumbent director continues to be qualified and has performed his or her duties
satisfactorily during the preceding term and there exist no special reasons,
including those relating to the compositional and functional needs of the Board
as a whole, why the incumbent should not be nominated, the Nominating and
Corporate Governance Committee will propose the incumbent director for
re-election. In identifying and evaluating new candidates for election to the
Board, the Nominating and Corporate Governance Committee will solicit
recommendations from members of the Board and the management of the Company. The
Nominating and Corporate Governance Committee will assemble information
concerning the background and qualifications of each candidate and determine if
each candidate satisfies the minimum qualifications required of candidates and
possesses any of the specific qualities that must be possessed by one or more
members of the Board. The Nominating and Corporate Governance Committee will
consider the contribution that the candidate can be expected to make to the
overall functioning of the Board and the extent to which the membership of the
candidate would promote diversity on the Board, with regard to professional
background, experience, expertise, age, gender, ethnicity and country of
citizenship.
It is the
policy of the Nominating and Corporate Governance Committee that all persons
nominated to serve as a director of the Company should possess certain minimum
qualifications as threshold criteria. The Nominating and Corporate Governance
Committee does not have a written policy regarding the consideration of
diversity, however defined, and does not explicitly seek diversity in
identifying and evaluating nominees for director. Instead, the Nominating and
Corporate Governance Committee seeks such qualifications as, among others, the
personal integrity and ethical character of the candidate; the absence of any
conflicts of interest that would impair the candidate’s ability to exercise
independent judgment or discharge the fiduciary duties of a director; the
ability to represent fairly and equally stockholders of the Company;
demonstrated achievement in one or more fields of business, professional,
governmental, communal, scientific or educational endeavor; a demonstrated
ability to function effectively in an oversight role; a general business
understanding of major issues facing public companies of comparable size and
operational scope to the Company; and adequate time to devote to the Board and
its committees. Only under exceptional and limited circumstances will the
Nominating and Corporate Governance Committee approve a candidate who does not
satisfy these requirements. The Nominating and Corporate Governance Committee
will adhere to the applicable rules and guidelines of Nasdaq and the
SEC.
The
Nominating and Corporate Governance Committee will also consider director
candidates recommended by stockholders. Any stockholder that wishes to nominate
a director candidate should submit complete information as to the identity and
qualifications of the director candidate pursuant to the procedures set forth
below under
“
Stockholder
Communication with the Board of Directors
”.
The Nominating and
Corporate Governance Committee will evaluate persons recommended by stockholders
in the same manner as other candidates.
In addition, the Nominating and
Corporate Governance Committee is responsible for, among other things,
evaluating the effectiveness of the Board and its Committees, and for
developing, updating as necessary, and recommending to the Board corporate
governance principles and policies applicable to the Company. The Company’s
Board of Directors has adopted a written charter for the Nominating and
Corporate Governance that is available for review under
the
Corporate
Governance
section on our
Website at
www.webmediabrands.com
.
The Nominating and Corporate Governance
Committee met four times during the fiscal year ended December 31,
2009.
Directors’
Attendance
The
Company does not currently have a formal policy regarding director attendance at
the Company’s annual meetings. However, it is expected that, absent compelling
circumstances, each director will be in attendance for each board meeting. The
Board of Directors met four times and participated in three telephonic meetings
during the fiscal year ended December 31, 2009. All of the directors
attended all of the Board of Directors’ meetings and all of the meetings of each
committee on which each such director serves.
Legal
Proceedings
WebMediaBrands
is subject to legal proceedings and claims that arise in the ordinary course of
its business. In the opinion of management, the amount of ultimate liability
with respect to active legal proceedings should not materially affect the
financial statements of
WebMediaBrands.
Stockholder
Communication with the Board of Directors
Generally,
stockholders who have questions or concerns should visit our
Investor Relations
home page
at
www.webmediabrands.com/corporate/investors.html
. However, any stockholders who wish to address questions or other
communications regarding our business directly to the Board of Directors, a
committee or any individual director, should direct their questions or other
communications in writing to the Chairman of the Board at WebMediaBrands Inc.,
50 Washington Street, 9
th
Floor, Norwalk, CT 06854. The Chairman will forward all such communications as
appropriate.
EXECUTIVE
OFFICERS
In
addition to Alan M. Meckler, the Chairman of the Board and Chief Executive
Officer, the following person is an executive officer of the
Company.
|
|
|
|
|
Name
|
|
Age
|
|
Position
with Company
|
Donald
J. O’Neill
|
|
36
|
|
Donald
J. O’Neill has been the Vice President and Chief Financial Officer of the
Company since May 2007. From May 2005 to May 2007, Mr. O’Neill served as
Controller of the Company after having held various accounting staff and
management positions with the Company since his hiring in April 2000.
Prior to his tenure at the Company, Mr. O’Neill was employed by Arthur
Andersen LLP.
|
EXECUTIVE
COMPENSATION
Compensation
Discussion and Analysis
Overview
of Compensation Philosophy and Program Objectives
In order
to recruit and retain the most qualified and competent individuals to the
Company’s management team, the Company strives to maintain a compensation
program that is competitive in the current labor market. The purposes of the
Company’s compensation program are to attract and retain highly qualified
employees and to reward performance. The following compensation objectives were
considered in determining the compensation of the Chairman and Chief Executive
Officer, Alan M. Meckler, and the Vice President and Chief Financial Officer,
Donald J. O’Neill (referred to collectively herein as the
“
NEOs
”):
|
•
|
|
designing
competitive compensation and stock incentive plan to enhance the Company’s
ability to attract and also to retain knowledgeable and experienced
executives;
|
|
•
|
|
setting
compensation and incentive level that reflect competitive market practices
and that are geared both towards the current and long-term performance of
the Company; and
|
|
•
|
|
ensuring
that a significant portion of the total compensation package is determined
by increases in stockholder value, in order to align the executives’
interests with those of the Company’s
stockholders.
|
Oversight
of Executive Compensation Program
Relating
to NEO compensation, the responsibilities of the Compensation Committee include
the following (subject, where applicable, to ratification by the Board of
Directors):
|
•
|
|
developing
and promoting an effective compensation
philosophy;
|
|
•
|
|
reviewing
and establishing long-term performance goals and objectives for the
Company’s NEOs;
|
|
•
|
|
evaluating
the performance of the Company’s NEOs in light of approved goals and
objectives;
|
|
•
|
|
determining
the compensation of the NEOs based on their performance evaluations,
consisting of components of compensation such as annual salary and
long-term incentive compensation and perquisites, and any other matters
relating to the compensation of the NEOs that the Compensation Committee
considers appropriate, such as considerations regarding
employment,
severance, change of control, or other compensation agreements or
arrangements to be entered into or otherwise established between the
Company and the NEOs; and
|
|
•
|
|
administering
all equity-based compensation plans and arrangements with an aim toward
furthering the Company’s long-term
goals.
|
Comparative
Compensation Data
The
Compensation Committee has historically utilized information compiled by the
Company specific to the media industry as a resource for determining competitive
compensation for the Company’s NEOs, which includes information on salaries and
long-term equity incentives of companies of varying size and market
capitalization within the media industry. The Compensation Committee uses the
benchmark information as a general framework and attempts to ensure that the
total compensation for the Company’s NEOs is consistent with the range of total
compensation being paid to executives at similarly sized companies in similar
industries. It is important to note that the competitive compensation
information is just one relevant consideration in the compensation assessment
and decision process. As described in more detail in this compensation
discussion and analysis, in addition to relevant market compensation information
and each executive officer’s total compensation, the Compensation Committee also
considers the following factors in reviewing and determining compensation levels
for our NEOs:
|
•
|
|
Overall
company performance measured in terms of financial performance,
stockholder value creation, and execution of the Company’s management
objectives;
|
|
•
|
|
Individual
performance, including in particular, each individual executive’s
contribution to successful implementation of long-term strategic
direction; and
|
|
•
|
|
The
relative mix between compensation elements as it relates to both fixed and
variable, and cash and non-cash,
compensation.
|
The
Compensation Committee periodically meets with the CEO to discuss the
information supplied and to discuss proposed compensation changes for the NEOs
other than himself, along with its initial conclusions as to compensation for
the subsequent year.
Compensation
Elements
Although
the Compensation Committee does not target a specific ratio between salary and
equity awards, the Compensation Committee believes that the current mix of cash
and equity-based compensation provided to the NEOs, by emphasizing incentive
compensation that is at risk and tied to the Company’s financial performance,
furthers the Company’s compensation philosophy and objectives stated
above.
The key
components of the NEO compensation are salary and stock option awards. A
discussion of the various components of the NEO compensation for fiscal year
2009 follows.
Salary
Competitive
base salaries are an important factor in a company’s ability to attract and
retain their NEOs. The Compensation Committee reviews salary-related information
to ensure that the salary program is competitive, and base salaries for the NEOs
are determined each year by the Compensation Committee based on a variety of
factors in addition to salary-related data regarding similar positions requiring
similar qualifications within the industry, such as the executive’s experience,
job responsibilities and the performance of such executive’s duties and
responsibilities during the relevant year. In 2009, the Company instituted a
temporary 3% salary reduction for all employees, including the NEOs. The
temporary 3% salary reduction has since been reversed.
Stock
Incentive Plan
The
Company’s 2008 Stock Incentive Plan is intended to provide employees with
long-term rewards designed to appreciate in value with the favorable future
performance of the Company. We generally grant stock options from time to time
as part of the periodic grants to certain employees, including the NEOs, based
on individual performance.
As a
result of the sale of the online images business (the “Images Sale”) on February
23, 2009 and the sale of the assets related to the Company’s Internet.com
business (the “Internet.com Sale”) on November 30, 2009, all unvested stock
options on each respective date were immediately vested.
In
addition, prior to 2007, the Company issued stock options with a life of ten
years except for stock options granted to the CEO. As a result of
Mr. Meckler’s status as an affiliate of the Company, stock options granted
to him expire five years following the date of grant to ensure that the stock
options retain their tax-qualified status. Beginning in 2007, the Compensation
Committee determined that all future stock option grants should have a five-year
term because this would result in less stock-based compensation expense for the
Company based on applicable accounting principles. Stock option grants vest
equally on each of the first three anniversaries of grant.
The
Compensation Committee believes that the stock option awards and the period over
which they vest provide a method of retention and motivation for the executives
of the Company and also encourage the executives to manage the Company in an
effective manner with a goal of achieving long-term stock price
appreciation.
Perquisite and Other Personal
Benefit
Mr. Meckler is provided use of a
Company automobile and receives reimbursement for expenses related to the
automobile. This is a legacy benefit that was granted at the time of the
Company’s inception, and during its continuing review of total compensation, the
Compensation Committee has determined that continuing to provide this benefit is
reasonable and consistent with its overall goals of retaining highly qualified
employees for key positions. During 2005, the Board of Directors granted
lifetime post-employment medical benefits and prescription drug coverage to the
CEO and his spouse. In December 2009, the Compensation Committee consented to
and adopted, at the request of the CEO, a resolution that terminated the
entitlement to post-employment medical benefits and prescription drug coverage
for the CEO and his spouse.
These perquisites and other personal
benefits were considered by the Compensation Committee such that, when combined
with base salary and the issuance of stock options, total compensation is
consistent with the range of total compensation being paid to executives at
similarly sized companies in similar industries. The specific perquisites
provided to each NEO during 2008 and 2009 are shown in the footnotes to the
Summary Compensation Table below.
Severance
The
Company was party to an employment agreement with Christopher S. Cardell that
provided twelve months of continued base salary and benefits to be paid upon
termination for any reason. This was a legacy benefit that was granted at the
time of the Company’s inception. The Compensation Committee did not consider
this as part of their overall compensation decision process largely because this
legacy agreement pre-dates the Committee’s existence and this benefit was not
material to the retention of Mr. Cardell.
Effective
as of October 24, 2008, Mr. Christopher Cardell resigned as the
President and Chief Operating Officer of WebMediaBrands Inc. and as a director
of the Company. The specific severance-related amounts paid to Mr. Cardell
during 2009 are shown in the footnotes to the Summary Compensation Table
below.
The
Company is also party to an employment agreement with Donald J. O’Neill that
provides six months of severance to be paid upon termination without
cause.
Tax
Implications
Section 162(m)
of the Internal Revenue Code of 1986, as amended, places a limit of $1,000,000
on the amount of compensation that the Company may deduct in any one year with
respect to each of the NEOs. Certain performance-based compensation is not
subject to this deduction limit. Options granted under the Company’s 1999 Stock
Incentive Plan and 2008 Stock Incentive Plan qualify as performance-based
compensation exempt from the deduction limitation of Section 162(m). While
tax deductions are an important consideration in determining compensation
levels, because the non-exempt annual compensation paid to each of the NEOs does
not exceed the $1,000,000 limit, the Company has not adopted a formal policy
requiring that all compensation must be deductible.
Summary
Compensation Table
The
following table sets forth all compensation paid to, or accrued by the Company
for, the NEOs in respect of fiscal years 2009 and 2008. Alan M. Meckler and
Donald J. O’Neill were the only NEOs of the Company during the periods
presented. Christopher S. Cardell was the Company’s President and Chief
Operating Officer through his resignation effective as of October 24,
2008.
Name
and Principal Position
|
|
Year
|
|
Salary
($)
|
|
Option
Awards
($)
(1)
|
|
Non-Equity
Incentive
Plan
Compensation
($)
|
|
All Other
Compensation
($)
|
|
|
Total
($)
|
Alan
M. Meckler
Chairman
and Chief
Executive
Officer
|
|
2009
2008
|
|
360,291
363,346
|
|
176,393
795,088
|
|
—
—
|
|
64,406
82,890
|
(2)
|
|
601,090
1,241,324
|
Christopher
S. Cardell
Former
President and Chief
Operating
Officer
(4)
|
|
2009
2008
|
|
—
315,214
|
|
—
721,607
|
|
—
—
|
|
309,155
86,212
|
(3)
|
|
309,155
1,123,033
|
Donald
J. O’Neill
Vice
President and Chief
Financial
Officer
|
|
2009
2008
|
|
196,077
195,673
|
|
71,800
68,704
|
|
—
—
|
|
—
—
|
|
|
267,877
264,377
|
(1)
|
Amounts
in the Option Awards column include the aggregate grant date fair value
computed in accordance with Financial Accounting Standards Board ("FASB")
Accounting Standards Codifications ("ASC") Topic 718 for 2009 stock
option awards based on a Black-Scholes value of $0.26 for 175,000 stock
options and $0.43 for 300,000 stock options for Mr. Meckler and
a Black-Scholes value of $0.27 for 100,000 stock options and $0.45 for
100,000 stock options for Mr. O'Neill. A discussion of assumptions
relating to option awards may be found in Note 18 to the Consolidated
Financial Statements in the Company’s 2009 Form 10-K. The amounts
previously reported for 2008 have been restated in accordance with new SEC
rules relating to executive
compensation.
|
(2)
|
The
expense recorded by the Company during 2009 for post-employment medical
benefits and prescription drug coverage was approximately $51,743. The
value attributable to the use of a Company-provided automobile, and
reimbursement of related expenses during 2009 was
$12,743.
|
(3)
|
The
amounts disclosed include $292,731 in severance payments made pursuant to
the employment agreement with Mr. Cardell and $16,424 in COBRA benefits
that were provided to Mr. Cardell as part of his
resignation.
|
(4)
|
Mr. Cardell
was the Company’s President and Chief Operating Officer and a director of
the Company through the effective date of his resignation on
October 24, 2008.
|
Grants
of Plan-Based Awards Table
The
following table sets forth stock options granted during the fiscal year ended
December 31, 2009, to the Company’s NEOs.
|
|
|
|
|
|
|
|
|
Name
|
|
Grant
Date
|
|
All Other
Option Awards:
Number of
Securities
Underlying
Options
(#)
(1)
|
|
Exercise or
Base
Price of
Option Awards
($/Sh)
|
|
Grant Date
Fair
Value of
Option Awards
($)
|
|
|
|
|
|
|
|
|
|
Alan
M. Meckler
|
|
03/04/09
|
|
175,000
|
|
0.48
|
|
46,253
|
|
|
12/09/09
|
|
300,000
|
|
0.77
|
|
130,140
|
|
|
|
|
|
|
|
|
|
Donald
J. O’Neill
|
|
3/04/09
|
|
100,000
|
|
0.44
|
|
27,180
|
|
|
12/09/09
|
|
100,000
|
|
0.70
|
|
44,620
|
(1)
|
All
of the stock options in the above table were granted on March 4, 2009 and
December 9, 2009. The stock options will generally become exercisable in
respect of one-third of the shares covered thereby on each of the first
three anniversaries of their grant date or, if earlier, upon a change in
control of the Company. Options issued on March 4, 2009 became exercisable
on November 30, 2009 as a result of the Internet.com Sale due
to a deemed change in control of the Company. Each unexercised stock
option terminates automatically if the optionee ceases to be an employee
of the Company for any reason. If an optionee undergoes a termination on
account of retirement or disability, by the Company without cause, or with
the written approval of the Compensation Committee, their vested options
will remain exercisable until the earlier of the last day of the original
option period and three months after the date of termination; upon an
optionee’s death, each of their vested stock options shall expire on the
last day of the option period or, if earlier, the date that is twelve
months after the date of the optionee’s
death.
|
Narrative
Disclosure Relating to Summary Compensation Table
and
Grants of Plan-Based Awards Table
Employment
Agreements
The
Company is party to an employment agreement with Mr. O’Neill that provides
for six months of severance and benefits to be paid upon termination without
cause.
Stock
Incentive Plan
The
Company maintains its 1999 Stock Incentive Plan, as amended and restated as of
March 5, 2008 (the “1999 Plan”), pursuant to which 12,000,000 shares of the
Company’s common stock are reserved for issuance (less previously issued shares
thereunder), subject to adjustment in the event of any stock dividend or split,
reorganization, recapitalization, merger, share exchange or any other similar
corporate transaction or event. For purposes of determining the remaining shares
of common stock available for grant under the plan, to the extent that an award
expires or is canceled, forfeited, settled in cash, or otherwise terminated
without a delivery to the participant of the full number of shares of common
stock to which the award related, the undelivered shares of common stock will
again be available for grant.
At the
Annual Meeting of Stockholders of WebMediaBrands held on June 3, 2008,
WebMediaBrands’s stockholders approved the WebMediaBrands 2008 Stock Incentive
Plan (the “2008 Plan”). The 2008 Plan, along with the form of Incentive Stock
Option Agreement and the form of Nonqualified Stock Option Agreement were
approved and adopted by WebMediaBrands’s Board on April 28, 2008. Subject
to certain antidilution adjustments, 4,353,279 shares of WebMediaBrands common
stock may be issued under the 2008 plan as of December 31, 2009. In order to
qualify certain awards under the plan as “performance-based compensation” within
the meaning of Section 162(m) of the Internal Revenue Code of 1986, as
amended, no employee shall be eligible to be granted options or stock
appreciation rights covering more than 500,000 shares of the Company’s common
stock during any calendar year.
The 1999
and 2008 Plans permit the Compensation Committee to grant equity-based awards to
participants, including non-qualified stock options, restricted stock, and other
awards that are valued by reference to, or otherwise based on, the fair market
value of the Company’s common stock. The Compensation Committee establishes
vesting and performance requirements that must be met at the time of the grant
of an award, as well as other terms and conditions relating to such award.
Beginning in 2007, all options granted under the 1999 and 2008 plans will expire
no later than the 5th anniversary of the applicable date of grant of the
options.
Generally,
the Compensation Committee may, in its sole discretion, provide for the
termination of an award and the payment of a cash amount in exchange for the
cancellation of an award upon the consummation of a merger, a sale of all or
substantially all of our assets or a reorganization or liquidation of the
Company. All unvested awards will immediately vest upon a change in control of
the Company.
The Board
of Directors has the ability to amend, subject to stockholder approval for
certain types of amendments, or terminate the plan at any time, provided that no
amendment or termination will be made that impairs the rights of the holder of
any award outstanding on the date of such amendment or termination.
Outstanding
Equity Awards at Fiscal Year-End
The
following table shows outstanding stock option awards classified as exercisable
and unexercisable as of December 31, 2009, for each NEO.
|
|
Option
Awards
|
Name
|
|
Number
of
Securities
Underlying
Unexercised
Options
(#)
Exercisable
|
|
Number
of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable
|
|
Option
Exercise
Price
($)
|
|
Option
Expiration
Date
(1)(2)(3)
|
Alan
M. Meckler
|
|
200,000
320,000
13,744
175,000
13,949
175,000
175,000
—
|
|
—
—
—
—
—
—
—
300,000
|
|
$
$
$
$
$
$
$
$
|
0.26
0.26
16.01
0.26
7.89
0.26
0.48
0.77
|
|
06/09/2010
06/07/2011
06/07/2011
06/04/2012
06/04/2012
12/12/2012
03/04/2014
12/09/2014
|
|
|
|
|
|
Donald
J. O’Neill
|
|
2,000
2
2,000
3,000
3,000
1,667
1,667
40,000
37,167
40,000
1,063
5,150
5,150
100,000
3,000
3,000
—
2,000
2,000
3,000
2
3,000
|
|
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
100,000
—
—
—
—
—
|
|
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
|
0.26
2.01
18.75
0.26
6.41
0.26
2.28
0.26
7.17
0.26
4.14
0.26
3.23
0.44
0.26
11.55
0.70
0.26
18.03
0.26
2.01
14.55
|
|
04/28/2010
04/28/2010
04/28/2010
12/07/2010
12/07/2010
05/15/2012
05/15/2012
06/04/2012
06/04/2012
12/12/2012
12/12/2012
06/09/2013
06/09/2013
03/04/2014
06/14/2014
06/14/2014
12/09/2014
06/09/2015
06/09/2015
06/07/2016
06/07/2016
06/07/2016
|
(1)
|
Each
stock option granted prior to 2007 has a ten-year term from date of grant
except for stock options granted to Alan M. Meckler, which have a
five-year term. Stock option grants vest equally on each of the first
three anniversaries of their respective grant dates but vesting will
accelerate upon a change in control of the
Company.
|
(2)
|
Each
stock option granted after 2006 has a five-year term from date of grant.
Stock option grants vest equally on each of the first three anniversaries
of their respective grant dates but vesting will accelerate upon a change
in control of the Company.
|
(3)
|
On
May 20, 2008, all outstanding non-qualified stock options having an
exercise price greater than $4.00 per share were exchanged for new options
with an exercise price of $2.01 per share, the closing price of
WebMediaBrands’s common stock on May 20, 2008, on a one-for-one
basis. The new options follow the vesting schedule of the original options
that were exchanged. On November 17, 2008 all outstanding
non-qualified stock options having an exercise price greater than $2.00
per share were exchanged for new options with an exercise price of $0.26
per share, the closing price of WebMediaBrands’s common stock on
November 17, 2008, on a one-for-one basis. The new options follow the
vesting schedule of the original options that were
exchanged.
|
Potential
Payments Upon Termination or Change in Control
Pursuant
to the employment agreement with Mr. O’Neill, upon termination of employment
without cause by the Company, Mr. O’Neill is entitled to continue to receive his
base salary and benefits for the period of six months following the date of such
termination. The table below reflects the amount of compensation and benefits
payable to Mr. Meckler and Mr. O’Neill in the event of a termination of
employment. The amounts shown assume that the applicable triggering event
occurred on December 31, 2009, and therefore, may differ from actual
amounts paid upon a termination of employment on another date.
Name
|
|
Type of Payment
|
|
Termination of
Employment
($)
|
|
Change in
Control
($)
(2)
|
Alan
M. Meckler
|
|
Cash
Severance
|
|
—
|
|
—
|
|
|
Continued Benefits
|
|
—
|
|
—
|
|
|
Equity Acceleration
|
|
—
|
|
127,532
|
|
|
|
|
|
|
|
|
|
Total
|
|
—
|
|
127,532
|
|
|
|
|
|
|
|
Donald
J. O’Neill
|
|
Cash
Severance
|
|
98,039
|
|
—
|
|
|
Continued Benefits
(1)
|
|
10,315
|
|
—
|
|
|
Equity
Acceleration
|
|
—
|
|
43,726
|
|
|
|
|
|
|
|
|
|
Total
|
|
108,353
|
|
43,726
|
(1)
|
The
calculation of continued benefits for Mr. O’Neill assumes a monthly
cost of coverage to equal $1,719 which represents the monthly premiums to
obtain coverage pursuant to the Consolidated Omnibus Budget Reconciliation
Act.
|
(2)
|
Upon
a change in control of the Company, all unvested equity awards under the
1999 and 2008 Stock Incentive Plans will vest in full. The amount
disclosed represents the dollar amount that would have been recognized for
financial statement reporting purposes for the year ended
December 31, 2009 in accordance with the accounting pronouncement
related to stock-based compensation had there been a change in control of
the Company on December 31, 2009.
|
DIRECTOR
COMPENSATION
Directors
of the Company who are also employees or officers of the Company do not receive
any compensation specifically related to their activities as directors, other
than reimbursement for expenses incurred in connection with their attendance at
Board meetings.
Effective
December 12, 2007, non-employee directors of the Company are granted, on an
annual basis, stock options to purchase 16,000 shares of Common Stock.
Non-employee directors also receive an annual cash stipend of $20,000. In
addition, each outside director receives a cash stipend of $5,000 for attendance
at each board meeting held beyond the four scheduled meetings. The directors are
also reimbursed for their expenses incurred in connection with their attendance
at Board meetings. In addition, each non-employee director receives, upon
becoming a director, options for 5,000 shares of common stock
The
Chairman of the Audit Committee is granted, on an annual basis, stock options to
purchase 10,000 shares of common stock. The Chairman of the Audit Committee also
receives an additional annual cash stipend of $10,000. In addition, the Chairman
of the Compensation Committee and the Chairman of the Nominating and Corporate
Governance Committee each are granted, on an annual basis, additional stock
options to purchase 5,000 shares of Common Stock. The Chairman of the
Compensation Committee and the Chairman of the Nominating and Corporate
Governance Committee each receive an
additional annual cash
stipend of $5,000.
Director
Compensation Table
The
following table sets forth information with respect to total compensation paid
by the Company during the fiscal year 2009 to each of the member of the Board of
Directors.
Name
|
|
Fees Earned
or Paid in Cash
($)
(1)
|
|
Option Awards
($)
(2)
|
|
All
Other
Compensation
($)
|
|
Total
($)
|
Gilbert
F. Bach
|
|
28,000
|
|
15,078
|
|
—
|
|
43,078
|
Michael
J. Davies
|
|
28,000
|
|
15,078
|
|
—
|
|
43,078
|
John
R. Patrick
|
|
33,000
|
|
18,668
|
|
—
|
|
51,668
|
William
A. Shutzer
|
|
23,000
|
|
11,488
|
|
—
|
|
34,488
|
(1)
|
During
2009, Messrs. Bach, Davies, Patrick and Shutzer each earned additional
fees in the amount of $3,000 for participation during telephonic meetings
of the Board of Directors.
|
(2)
|
Amounts
in the Option Awards column include the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 for 2009 stock option
awards based on the Black-Scholes value of $0.27 for 21,000 stock
options for Messrs. Bach and Davies, respectively, 26,000 stock
options for Mr. Patrick and 16,000 stock options for Mr. Shutzer and $0.45
for 21,000 stock options for Messrs. Bach and Davies, respectively,
26,000 stock options for Mr. Patrick and 16,000 stock options for Mr.
Shutzer. A discussion of assumptions relating to option awards may
be found in Note 18 to the Consolidated Financial Statements in the
Company’s 2009 Form 10-K.
|
COMPENSATION COMMITTEE
REPORT
ON
EXECUTIVE COMPENSATION
The
Compensation Committee has reviewed and discussed the Compensation Discussion
and Analysis for the year ended December 31, 2009 with management, and
based on such review and discussions, the Compensation Committee recommended to
the Board of Directors that the Compensation Discussion and Analysis be included
in this Proxy Statement.
|
COMPENSATION
COMMITTEE OF THE BOARD OF DIRECTORS
|
|
Michael
J. Davies, Compensation Committee
Chairman
|
The
above report of the Compensation Committee will not be deemed to be incorporated
by reference into any filing by the Company under the Securities Act or the
Exchange Act, except to the extent that the Company specifically incorporates it
by reference.
COMPENSATION
COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The
following individuals served on the Compensation Committee during the 2009
fiscal year: Michael J. Davies, Compensation Committee Chairman; Gilbert F.
Bach; William A. Shutzer; and John R. Patrick. The Compensation Committee makes
all compensation decisions with respect to the Company’s NEOs. No interlocking
relationship exists between the Board or Compensation Committee and the board of
directors or compensation committee of any other company, nor has any such
interlocking relationship existed in the past.
Effective
January 22, 2010, the Board of Directors of WebMediaBrands Inc. appointed Wayne
A. Martino a member of the Board. Wayne A. Martino has served as a member
of each of the Audit Committee, the Compensation Committee and the Nominating
and Corporate Governance Committee of the Board, since his
appointment.
ITEM 2.
APPROVAL OF AUDITORS
Grant
Thornton LLP, independent registered public accounting firm, audited the
financial statements of the Company for the fiscal years ended December 31,
2008 and December 31, 2009. Such services consisted of the firm’s audit of
and report on the Company’s annual financial statements and consultation on
financial accounting and reporting matters as well as certain filings with the
Securities and Exchange Commission.
During
2008 and 2009, the Company retained Grant Thornton LLP to provide services, all
of which were approved by the Audit Committee, in the following categories and
amounts:
|
|
Grant
Thornton
LLP
|
|
|
|
2008
|
|
|
2009
|
|
Audit
fees
|
|
$
|
1,558,616
|
|
|
$
|
376,424
|
|
Audit-related
fees
|
|
$
|
29,070
|
|
|
$
|
—
|
|
Tax
fees
|
|
$
|
11,250
|
|
|
$
|
—
|
|
All
other fees
|
|
$
|
218,768
|
|
|
$
|
132,995
|
|
Audit
Fees
Audit
fees incurred or paid to Grant Thornton LLP were for services provided in
conjunction with the audit of the annual consolidated financial statements
included in the Company’s 2008 and 2009 Annual Reports on Form 10-K, for the
reviews of the consolidated financial statements included in the Company’s Forms
10-Q for the quarters included in the years ended December 31, 2008 and
2009 and for other services related to Securities and Exchange Commission
matters.
Audit-related
Fees
Audit-related
fees incurred or paid to Grant Thornton LLP were for services provided in
conjunction with financial accounting and reporting consultations for the year
ended December 31, 2008.
Tax
Fees
Tax fees
incurred or paid to Grant Thornton LLP were for services associated with tax
compliance and tax consultation for the year ended December 31,
2008.
All
Other Fees
Amounts
paid to Grant Thornton LLP were primarily for services associated with the
Images and Internet.com Sales.
The Audit
Committee has considered whether the provision of non-audit services by the
Company’s principal auditor are compatible with maintaining auditor
independence.
Representatives
of Grant Thornton LLP are expected to attend the Annual Meeting, will have the
opportunity to make a statement if they desire to do so and will be available to
respond to appropriate questions.
Based
upon the recommendation of the Audit Committee, and subject to approval by the
stockholders, the Board of Directors has appointed Grant Thornton LLP,
independent registered public accounting firm, as auditors of the Company for
the fiscal year ending December 31, 2010. In making its recommendation, the
Audit Committee reviewed past audit results and other non-audit services
performed during 2009 and proposed to be performed during 2010. In selecting
Grant Thornton LLP, the Audit Committee and the Board of Directors carefully
considered their independence. The Audit Committee has determined that the
performance of such non-audit services did not impair the independence of Grant
Thornton LLP. Furthermore, Grant Thornton LLP has confirmed to the Company that
they are in compliance with all rules, standards and policies of the
Independence Standards Board and the Securities and Exchange Commission
governing auditor independence. It is the Audit Committee’s policy to
pre-approve all audit and non-audit services performed by Grant Thornton LLP.
The Audit Committee pre-approved all services provided by Grant Thornton LLP in
2009.
Approval by the stockholders of the
appointment of Grant Thornton LLP as the Company’s independent registered public
accounting firm for the fiscal year ending December 31, 2010 will require
the affirmative vote of a majority of the votes cast at the Annual Meeting in
person or by proxy and entitled to be cast. However, if not approved by the
stockholders, we might not change our auditors, and we reserve the right to
change auditors even if approved by the stockholders.
The
Board of Directors recommends a vote FOR the approval of the appointment of
Grant Thornton LLP, independent registered public accounting firm, to act as
independent auditors for the Company for the fiscal year ending
December 31, 2010.
OTHER
ACTIONS AT THE ANNUAL MEETING
The Board
of Directors knows of no other matters that are likely to be brought before the
Annual Meeting. However, if any other matters are brought before the Annual
Meeting, the proxy holder will vote proxies granted by stockholders in
accordance with their best judgment.
2010
STOCKHOLDERS’ PROPOSALS
To be
considered for inclusion in the Company’s proxy statement relating to the Annual
Meeting of Stockholders to be held in 2011, the Secretary of the Company must
receive stockholder proposals no later than 120 days prior to May 7, 2011.
To be considered for presentation at the Annual Meeting, although not included
in the proxy statement, proposals must be received no later than 45 days prior
to May 7, 2011. All stockholder proposals should be sent to the attention
of Corporate Secretary, WebMediaBrands Inc., 50 Washington Street, 9
th
Floor, Norwalk, Connecticut 06854.
SECTION
16 (a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16
(a) of the Securities Exchange Act of 1934, as amended, requires the
Company’s executive officers and directors, and greater than 10% stockholders to
file reports of ownership and changes in ownership of the Company’s securities
with the SEC. Specific due dates for these reports have been established by the
SEC, and the Company is required to disclose in this Proxy Statement any failure
by such persons to file these reports in a timely manner during the 2009 fiscal
year. Copies of the reports are required by SEC regulation to be furnished to
the Company. Based solely on its review of such reports furnished to it, the
Company believes that all Section 16(a) filing requirements applicable to
the Company’s directors, executive officers and greater than 10% beneficial
owners were complied with during the fiscal year ended December 31,
2009.
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
The Audit
Committee, among its other duties and responsibilities, reviews, monitors and
approves all related party transactions. The Audit Committee is responsible for
reviewing all related party transactions on a continuing basis and potential
conflict of interest situations where appropriate. No director shall participate
in any discussion or approval of a transaction for which he is a related party,
except that this director shall provide all material information concerning the
transaction to the Audit Committee.
During
2005, the Board of Directors granted lifetime post-employment medical benefits
and prescription drug coverage to the CEO and his spouse. In December 2009, the
Compensation Committee consented to and adopted, at the request of the CEO, a
resolution that terminated the entitlement to post-employment medical benefits
and prescription drug coverage for the CEO and his spouse. As a result, a
non-cash capital contribution of $293,000 was recorded and is included in
additional paid-in capital as a component of stockholders’ equity at December
31, 2009.
In
connection with the Images Sale, on February 23, 2009, we entered into
(a) the Swap Amendment, with respect to the Original Swap Agreement and
(b) the Credit Support Agreement, dated as of February 23, 2009 (the
“Credit Support Agreement”), with Alan M. Meckler (“Mr. Meckler”) and Ellen L.
Meckler (“Mrs. Meckler”). In connection with the Credit Support Agreement,
Mr. Meckler agreed to personally guarantee the Company’s obligations under
the Swap Agreement and Mrs. Meckler agreed to grant a security interest to
KeyBank in respect of certain of her assets to support Mr. Meckler’s
personal guarantee to KeyBank. In exchange for Mr. Meckler’s personal
guarantee to KeyBank and Mrs. Meckler’s grant of a security interest to
KeyBank, the Company agreed pursuant to the Credit Support Agreement to, among
other things, pay cash consideration to Mr. Meckler and Mrs. Meckler
on a monthly basis. The amount of the cash consideration was equal to
one-twelfth (1/12) of one percent (1%) of the notional amount of the
Swap Agreement, which notional amount was initially $49,250,000 but decreased by
$125,000 at the beginning of each fiscal quarter commencing on March 31,
2009. In addition, in certain circumstances, Mr. Meckler might have the
right to assume KeyBank’s interests in the Swap Agreement and the Swap Security
Agreements and, in the event that Mr. Meckler or Mrs. Meckler was
required to satisfy the Company’s obligations under the Swap Agreement,
Mr. Meckler and Mrs. Meckler would have been subrogated to KeyBank’s
rights against the Company under the Swap Agreement and the Swap Security
Agreements. The Credit Support Agreement was approved by all of the independent
members of the Company’s Board of Directors, each of whom also has no direct or
indirect interest in the Credit Support Agreement (the “Disinterested
Directors”), following Mr. Meckler’s disclosure to such Disinterested
Directors of the terms of the Credit Support Agreement.
On May
29, 2009, we paid off and terminated our Swap Agreement using the proceeds of a
$7.2 million loan to the Company from Mr. Meckler (“Meckler
Loan”). The Company obtained the Meckler Loan and paid off and
terminated the Swap Agreement in order to restructure and eliminate the
Company’s ongoing obligations under the Swap Agreement and preserve working
capital. In connection with these transactions, the Company entered into various
security agreements to secure the Meckler Loan, as described in more detail
below, and terminated various agreements securing the Swap Agreement and Swap
Security Agreement. We made one principal payment on the Meckler Loan in the
amount of $1.0 million during the year ended December 31, 2009.
On May
29, 2009, the Company (1) entered into a promissory note jointly and severally
payable by the Company and Mediabistro, to Mr. Meckler (the “Note”), (2) entered
into a Security Agreement with Mr. Meckler (the “Security Agreement”) pursuant
to which the Company granted to Mr. Meckler a security interest in the Company’s
assets, (3) entered into an Intellectual Property Security Agreement with Mr.
Meckler (the “IP Security Agreement”) pursuant to which the Company granted to
Mr. Meckler a security interest in the Company’s intellectual property, (4)
entered into a Pledge Agreement by the Company in favor of Mr. Meckler (the
“Pledge Agreement”) pursuant to which the Company granted to Mr. Meckler a
security interest in and an assignment of all of the shares of stock or other
equity interest of Mediabistro owned by the Company, and (5) agreed to enter
into a Blocked Account Control Agreement with Mr. Meckler and a depositary bank,
to further secure the Note (the “Control Agreement,” and together with the Note,
the Security Agreement, the IP Security Agreement and the Pledge Agreement, the
“Company Loan Documents”).
Simultaneously,
Mediabistro (1) entered into a Security Agreement with Mr. Meckler pursuant to
which Mediabistro granted to Mr. Meckler a security interest in Mediabistro’s
assets (the “Mediabistro Security Agreement”), (2) entered into an Intellectual
Property Security Agreement with Mr. Meckler pursuant to which Mediabistro
granted to Mr. Meckler a security interest in Mediabistro’s intellectual
property (the “Mediabistro IP Security Agreement”), and (3) agreed to enter into
a Blocked Account Control Agreement with Mr. Meckler and a depositary bank, to
further secure the Note (the “Mediabistro Control Agreement” and, together with
the Mediabistro Security Agreement and the Mediabistro IP Security Agreement,
the “Mediabistro Documents”).
To fund
the Meckler Loan, Mr. Meckler used a portion of the proceeds of a residential
mortgage loan that Bank of America, N.A. (“BOA”) granted to Mr. Meckler and Mrs.
Meckler (the “BOA Loan”). Pursuant to a Collateral Assignment of the Note dated
May 29, 2009, by Mr. Meckler to BOA, Mr. Meckler collaterally assigned the Note
to BOA as additional collateral for the BOA Loan. Payment terms of the Meckler
Loan reflect pass through of the BOA Loan payment terms (excluding those funds
borrowed pursuant to the BOA Loan for Mr. Meckler’s personal use). As a result,
the interest rate, amortization schedule and maturity date of each loan are
identical.
The
principal amount of the Meckler Loan equals the amount required to pay off and
terminate the Swap Agreement between the Company and KeyBank and related
transactional expenses. The interest rate of the Note is 4.7% per annum.
Interest on the outstanding principal amount is due and payable on the first day
of each calendar month for a period of five years. Thereafter, principal and
interest is due and payable in equal monthly payments in an amount sufficient to
pay the loan in full based on an amortization term of 15 years, to be paid in
full in the two remaining years. The Note is due and payable in full on May 29,
2016, and may be prepaid at any time without penalty or premium. So long as any
amount remains outstanding under the Meckler Loan, the Company must pay Mr.
Meckler a monthly accommodation fee of $40,000 in order to adjust the effective
interest rate of the Note.
The
Company Loan Documents and Mediabistro Documents contain customary terms for a
loan transaction of this type. If an Event of Default (as defined in the Note)
occurs and is continuing beyond a specified cure period, Mr. Meckler may declare
the Meckler Loan immediately due and payable. The Meckler Loan also will become
immediately due and payable upon certain events of bankruptcy or insolvency or
in the event of a Change of Control (as defined in the Note) of Mediabistro or
the Company. The Note must be repaid in full if Mr. Meckler is required to repay
the BOA Loan whether due to an Event of Default of the Company or Mediabistro or
otherwise.
The
Company Loan Documents were approved by all of the independent members of the
Company’s Board of Directors, each of whom also has no direct or indirect
interest in the Company Loan Documents or Mediabistro Documents, following Mr.
Meckler’s disclosure to those disinterested directors of the terms of the
Company Loan Documents and Mediabistro Documents.
DELIVERY
OF MATERIALS
The rules
of the SEC allow for householding, which is the delivery of a single copy of an
annual report and proxy statement to any address shared by two or more
stockholders. This combined mailing must be addressed to the security holders as
a group. Duplicate mailings can be eliminated by allowing stockholders to
consent to such elimination, or through implied consent if: (1) it is
believed that the stockholders are members of the same family, (2) the
stockholders are notified that householding is to be used, (3) the
stockholders do not request continuation of duplicate mailings and
(4) proxy materials are posted online at www.webmediabrands.com by clicking
on the Investor Relations option. If you own shares of common stock in your own
name as a holder of record, householding will not apply to your shares. If your
shares of common stock are held in street name, depending upon the practices of
your broker, bank or other nominee, you may need to contact them directly to
discontinue duplicate mailings to your address. If you wish to revoke your
consent to householding, and instead want mailings made to each individual at
the shared address, you must contact your broker, bank or other
nominee.
If you
wish to request extra copies free of charge of our annual report or proxy
statement, please either send your request in writing to WebMediaBrands Inc., 50
Washington Street, 9
th
Floor, Norwalk, CT 06854, Attention: Investor Relations; make your request by
calling 203-662-2800; or find our materials available by visiting our website at
www.webmediabrands.com.
REPORT
OF AUDIT COMMITTEE
To the
Board of Directors WebMediaBrands Inc.:
We have
reviewed and discussed with management the Company’s audited financial
statements as of and for the year ended December 31, 2009 as well as
management’s report on internal control over financial reporting.
We have
discussed with the independent auditors the matters required by the Auditing
Standards Board of the American Institute of Certified Public Accountants
Statement on Auditing Standards No. 61,
“
Communication
with Audit Committees
”.
We have
received and reviewed the written disclosures and the letter from the
independent auditors required by Independence Standard No. 1,
“
Independence
Discussions with Audit Committees
”,
as amended, by the
Independence Standards Board, and have discussed with the auditors the auditors’
independence.
Based on
the reviews and discussions referred to above, we recommended to the Board of
Directors, and the Board of Directors approved, that the financial statements
referred to above be included in the Company’s annual Report on Form 10-K for
the year ended December 31, 2009.
John R.
Patrick, Audit Committee Chairman
Michael
J. Davies
Gilbert
F. Bach
William
A. Shutzer
Wayne A.
Martino
ADDITIONAL
INFORMATION
The
Company will pay all of the expenses involved in preparing, assembling and
mailing this Proxy Statement and the accompanying materials. In addition to the
solicitation of proxies by mail, the Company will request brokers and securities
dealers to obtain proxies from and send proxy materials to their principals. The
Company will reimburse expenses incurred in connection therewith. The Company
has retained American Stock Transfer & Trust Company at an estimated
cost of $4,000 to assist in its solicitation of proxies. Proxies may be
solicited personally, by telephone or telegraph, by the directors and officers
of the Company without additional compensation.
FORM
10-K REPORT
Interested
stockholders may obtain a copy of the Company’s Annual Report on Form 10-K for
fiscal year 2009 filed with the Securities and Exchange Commission, including
all financial statements, schedules and exhibits, without charge by writing
to:
Investor
Relations
c/o
WebMediaBrands Inc.
50
Washington Street, 9
th
Floor
Norwalk,
CT 06854
Or by a
telephone call to: 203-662-2800
WebMediaBrands
Inc.
50
Washington Street, 9
th
Floor
Norwalk,
Connecticut 06854
NOTICE OF INTERNET
AVAILABILITY OF PROXY MATERIAL
:
Our Proxy
Statement and our 2009 Annual Report on Form 10-K
and
financial statements, are available at
http://www.webmediabrands.com/corporate/proxy.html
PROXY FOR
ANNUAL MEETING OF STOCKHOLDERS
THIS
PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The
undersigned hereby appoints Alan M. Meckler and Mitchell S. Eisenberg, as proxy
holders, with the power to designate a substitute, and hereby
authorizes each of them to represent and to vote as designated below, all
the shares of Common Stock of WebMediaBrands Inc. held of record by the
undersigned on April 23, 2010, at the Annual Meeting of Stockholders to be
held on June 3, 2010, or any adjournment thereof. At their discretion,
the proxy holders are authorized to vote such shares of Common Stock upon such
other business as may properly come before the Annual Meeting.
This
proxy, when properly executed, will be voted as directed. If no direction is
given with respect to a particular proposal, this proxy will be voted for such
proposal.
Please
mark, date, sign and return this proxy card promptly by mail, using the enclosed
envelope, by telephone or over the Internet. No postage is required if mailed in
the United States.
|
|
|
|
|
MAIL -
Date, sign and
mail your proxy card in the envelope provided as soon as
possible.
-OR-
TELEPHONE -
Call-toll-free
1-800-PROXIES
(1-800-776-9437)
from any touch-tone telephone
and
follow the instructions. Have your proxy card available when you
call.
-OR-
INTERNET -
Access “
www.voteproxy.com
” and follow the on-screen instructions. Have your proxy card available
when you access the web page.
|
|
|
|
|
|
|
COMPANY NUMBER
|
|
|
|
|
ACCOUNT
NUMBER
|
|
|
|
|
|
|
|
You
may enter your voting instructions at 1-800-PROXIES or www.voteproxy.com
up until 11:59 PM Eastern Time the day before the cut-off or meeting
date.
|
ê
Please detach along perforated line and
mail in the envelope provided IF you are not voting via telephone or the
Internet.
ê
|
Please
mark your vote as in this example.
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Election
of six directors listed below with terms expiring in 2011 at the Annual
Meeting.
|
|
2. Approval
of Grant Thornton LLP, independent registered public accounting firm, as
our independent auditors for the fiscal year ending December 31,
2010.
|
|
FOR
¨
|
|
AGAINST
¨
|
|
ABSTAIN
¨
|
|
|
NOMINEES:
|
|
|
|
|
|
|
|
|
¨
FOR all nominees listed at right,
except as marked below
¨
WITHHOLD AUTHORITY
for all nominees listed
below
|
|
°
Alan M.
Meckler
° Michael J.
Davies
° Gilbert F.
Bach
° William A.
Shutzer
° John R.
Patrick
° Wayne
A. Martino
|
|
THIS
PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN
BY THE UNDERSIGNED STOCKHOLDER(S). IF NO OTHER INDICATION IS MADE, THE
PROXY SHALL VOTE “FOR” ALL DIRECTOR NOMINEES, AND “FOR” PROPOSAL 2. A VOTE
“FOR” ALL DIRECTOR NOMINEES, AND A VOTE “FOR” PROPOSAL 2 IS RECOMMENDED BY
THE BOARD OF DIRECTORS.
IN
THEIR DISCRETION, THE PROXY IS AUTHORIZED TO VOTE UPON SUCH OTHER BUSINESS
AS MAY PROPERLY COME BEFORE THE ANNUAL MEETING AND ANY ADJOURNMENT
THEREOF.
|
|
|
|
|
WHETHER
OR NOT YOU PLAN TO ATTEND THE ANNUAL MEETING, YOU ARE ENCOURAGED TO
COMPLETE, DATE, SIGN AND RETURN THIS PROXY IN THE ACCOMPANYING
ENVELOPE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTRUCTION
: To withhold a vote
for an individual nominee(s), write the name of such nominee(s) in the
space provided below. Your shares will be voted for the remaining
nominee(s).
l
|
|
THE
UNDERSIGNED REVOKES ANY PRIOR PROXY AT THE MEETING AND RATIFIES ALL THAT
SAID ATTORNEYS AND PROXIES, OR ANY OF THEM, MAY LAWFULLY DO BY VIRTUE
HEREOF. THE RECEIPT OF THE NOTICE OF ANNUAL MEETING IS HEREBY
ACKNOWLEDGED.
|
¨
FOR
¨
WITHHOLD AUTHORITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholder:
|
|
|
|
|
|
Dated:
|
|
, 2010
|
|
Signature
(if held jointly):
|
|
|
|
Dated:
|
|
, 2010
|
|
|
|
Note:
|
Please
sign as name appears hereon. When joint owners hold shares, both should
sign. When signing as attorney, executor, administrator, trustee or
guardian, please give full title as such. If a corporation, please sign in
full corporate name by authorized officer giving full title. If a
partnership, please sign in partnership name by authorized person, giving
full title.
|
Webmethods (NASDAQ:WEBM)
Historical Stock Chart
From May 2024 to Jun 2024
Webmethods (NASDAQ:WEBM)
Historical Stock Chart
From Jun 2023 to Jun 2024