Current Report Filing (8-k)
November 22 2019 - 4:02PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (date of earliest event reported): November 22, 2019
Western
Capital Resources, Inc.
(Exact
name of registrant as specified in its charter)
Delaware
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000-52015
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47-0848102
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification No.)
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11550
“I” Street, Suite 150, Omaha, NE 68137
(Address
of principal executive offices) (Zip Code)
(402)
551-8888
(Registrant's
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
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☐
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act 17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§
230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth
company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(A) of the Exchange Act. ☐
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
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Trading
Symbol(s)
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Name
of each exchange on which registered
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Item
5.02
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Departure
of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers;
Compensatory Arrangements of Certain Officers
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On
November 22, 2019, Western Capital Resources, Inc. entered into an employment agreement (the “Employment Agreement”)
with its Chief Executive Officer, Mr. John Quandahl, effective as of November 1, 2019. Western Capital’s prior employment
agreement with Mr. Quandahl expired as of April 1, 2019. The Employment Agreement has a term of three years from the effective
date and contains other terms and conditions that are substantially the same as those of the prior agreement, except that Mr. Quandahl’s
base salary increased from $300,000 to $330,000.
The
performance-based bonus provisions of the Employment Agreement permit Mr. Quandahl and other members of management to receive
an annual bonus payment based on adjusted EBITDA targets annually established by the Board of Directors. If Western Capital’s
actual adjusted EBITDA performance for a particular annual period ranges from 85-100% of the established adjusted EBITDA target,
management will be entitled to receive a cash bonus consisting of 7.5% of the actual adjusted EBITDA. If Western Capital’s
actual adjusted EBITDA performance for a particular annual period is less than 85% of the established adjusted EBITDA target,
no bonus will be payable, and if such performance exceeds 100% of the established adjusted EBITDA target, the bonus pool will
include 7.5% of the adjusted EBITDA target and 15% of the amount by which such performance exceeds the target. Notwithstanding
the foregoing, the Employment Agreement also provides that the bonuses will not be paid unless, in addition to the adjusted EBITDA
threshold, capital expenditure and working capital thresholds have been achieved. The bonus pool will be payable to other management-level
participants in the bonus pool, if any, selected from time to time by the Board of Directors in its discretion.
The
Employment Agreement also contains customary provisions prohibiting Mr. Quandahl from soliciting customers and employees of Western
Capital for three years after any termination of his employment with the company, and from competing with Western Capital for
either three years (if Mr. Quandahl is terminated for good cause or if he resigns without good reason) or two years (if Western
Capital terminates Mr. Quandahl’s employment for without good cause or if he resigns with good reason). If Mr. Quandahl’s
employment is terminated by Western Capital without “good cause” or if Mr. Quandahl voluntarily resigns with “good
reason,” then Mr. Quandahl will be entitled to (i) severance pay in the form of continuation of his base salary for a period
of 12 months and (ii) reimbursement for health insurance premiums for his family if he elects continued coverage under COBRA.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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Western
Capital Resources, Inc.
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Date: November
22, 2019
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By:
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/s/
Angel Donchev
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Angel
Donchev
Chief
Financial Officer
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Western Capital Resources (CE) (USOTC:WCRS)
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