SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. )
Filed by the Registrant
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Filed by a Party other than Registrant
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material under §240.14a-12
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GLOBALSCAPE, INC.
(Name of Registrant as Specified in Its Charter)
(Name of Persons(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
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Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11
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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
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Proposed maximum aggregate value of transaction:
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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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Form, Schedule or Registration Statement No.:
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GlobalSCAPE, Inc.
4500 Lockhill-Selma Rd, Suite 150
San Antonio, Texas 78249
(210) 308-8267
April 23, 2012
Dear Stockholders:
You are cordially invited to attend the 2012 Annual Meeting of Stockholders of GlobalSCAPE, Inc. to be held at GlobalSCAPEs
headquarters, 4500 Lockhill-Selma Road, Suite 150, San Antonio, TX 78249, on Monday, June 4, 2012 at 2:00 p.m. If you cannot attend the annual meeting, you may vote over the Internet or, if you received a paper copy of the proxy materials, you
can follow the instructions on the proxy card.
At this years annual meeting, the agenda includes the annual election of
directors and ratification of the selection of Grant Thornton LLP as our independent registered public accounting firm for the current fiscal year. Please refer to the proxy statement for detailed information on each of the proposals and the annual
meeting.
Every stockholder vote is important. Even if you do not plan to attend the annual meeting, we hope you will vote
as soon as possible. You may vote by signing the Proxy Card and mailing it following the instructions on the card. If you prefer, you may vote over the Internet or by telephone following the instructions on your Proxy Card. You may revoke your proxy
at any time before it is voted.
Sincerely,
James R. Morris
Chief Executive Officer
GlobalSCAPE, Inc.
4500 Lockhill-Selma Rd, Suite 150
San Antonio, Texas 78249
(210) 308-8267
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held June 4, 2012
To the Stockholders of GlobalSCAPE, Inc.:
The 2012 Annual Meeting of Stockholders of GlobalSCAPE, Inc. (the Company) will be held at the Companys office located at 4500 Lockhill-Selma Road, Suite 150, San Antonio, Texas 78249,
on June 4, 2012, at 2:00 p.m., local time, for the following purposes:
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1.
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To elect the following two directors to serve for a term of three years:
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Thomas W. Brown
James R. Morris
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To ratify the appointment of Grant Thornton, LLP as the Companys independent registered public accounting firm for the year ending December 31, 2012; and
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3.
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To transact any other business that may properly come before the meeting or any adjournment thereof, including a motion to adjourn or postpone the meeting.
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The foregoing items of business are described more fully in the Proxy Statement accompanying this notice.
The Companys Board of Directors has fixed the close of business on April 9, 2012 as the record date for
determining the stockholders entitled to receive notice of, and to vote at, the Annual Meeting and any adjournment thereof.
STOCKHOLDERS ARE
CORDIALLY INVITED TO ATTEND THE MEETING IN PERSON.
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By Order of the Board of Directors,
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James R. Morris
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April 23, 2012
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Chief Executive Officer
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San Antonio, Texas
Important Notice Regarding Availability of Proxy Materials For Our Annual Meeting of Stockholders to be Held On June 4, 2012
This proxy statement, the accompanying form of proxy card and our Annual Report on Form 10-K for the fiscal year ended December 31,
2011, including financial statements, are available on the Internet at http://proxydocs.com/gsb.
GlobalSCAPE, Inc.
Proxy Statement
For
Annual Meeting of Stockholders
To Be Held Monday, June 4, 2012
Table of Contents
PROXY STATEMENT
General
This proxy
statement is furnished in connection with the solicitation by the Board of Directors of GlobalSCAPE, Inc. of proxies from the stockholders of GlobalSCAPE to be used at GlobalSCAPEs 2012 Annual Meeting of Stockholders. In accordance with
Securities and Exchange Commission rules, instead of mailing to stockholders a printed copy of our proxy statement, annual report and other materials relating to the Annual Meeting, we intend to mail to stockholders a Notice of Internet Availability
of Proxy Materials, which advises that the proxy materials are available on the Internet. We intend to commence distribution of the Notice of Internet Availability on or about April 23, 2012. Stockholders receiving a Notice of Internet
Availability by mail will not receive a printed copy of proxy materials, unless they so request. Instead, the Notice of Internet Availability will instruct stockholders as to how they may access and review proxy materials on the Internet.
Stockholders who receive a Notice of Internet Availability by mail who would like to receive a printed copy of our proxy materials, including a proxy card or voting instruction card, should follow the instructions for requesting these materials
included in the Notice of Internet Availability.
This process is designed to expedite stockholders receipt of proxy
materials, lower the cost of the annual meeting, and help conserve natural resources. If you previously elected to receive our proxy materials electronically, you will continue to receive these materials by e-mail unless you elect otherwise.
However, if you would prefer to receive printed proxy materials, please follow the instructions included in the Notice of Internet Availability.
Date, Time, Place of Annual Meeting
GlobalSCAPEs 2012 Annual Meeting of Stockholders will be held at 2:00 p.m., local time, on June 4, 2012, at GlobalSCAPEs
office at 4500 Lockhill-Selma Road, Suite 150, San Antonio, Texas 78249. GlobalSCAPEs office is located between N. Loop 1604 and DeZavala Road. If you need directions to our office, please call Reception at (210) 308-8267, ext. 100.
Record Date, Shares Entitled to Vote, Quorum
GlobalSCAPEs Board of Directors has fixed the close of business on April 9, 2012 as the record date for GlobalSCAPE
stockholders entitled to notice of and to vote at the annual meeting. As of the record date, there were 18,691,947 shares of GlobalSCAPE common stock outstanding, which were held by approximately 2,045 holders of record. Stockholders are entitled to
one vote for each share of GlobalSCAPE common stock held as of the record date.
The holders of a majority of the outstanding
shares of GlobalSCAPE common stock issued and entitled to vote at the annual meeting must be present in person or by proxy to establish a quorum for business to be conducted at the annual meeting. Whether you attend the meeting in person, sign and
return the proxy card or vote via the Internet or telephone, your shares will be counted as present at the meeting. Abstentions and broker non-votes are included for purposes of determining whether a quorum is present at the annual meeting. If you
own shares through a bank or broker in street name, you may instruct your bank or broker how to vote your shares. A broker non-vote occurs when you fail to provide your bank or broker with voting instructions and the bank or broker does
not have the discretionary authority to vote your shares on a particular proposal because the proposal is not a routine matter under the New York Stock Exchange rules. Proposal 1 (election of directors) is not considered a routine matter under
current New York Stock Exchange rules, so your bank or broker will not have discretionary authority to vote your shares held in street name on those items. A broker non-vote may also occur if your broker fails to vote your shares for any reason.
Proposal 2 (ratification of the appointment of our independent registered public accounting firm) is considered a routine matter under the New York Stock Exchange rules, so your bank or broker will have discretionary authority to vote your shares
held in street name on that Proposal.
1
If sufficient votes for approval of the matters to be considered at the annual meeting have
not been received prior to the meeting date, GlobalSCAPE may postpone or adjourn the annual meeting in order to solicit additional votes. The form of proxy being solicited by this Proxy Statement provides the authority for the proxy holders, in
their discretion, to vote the stockholders shares with respect to a postponement or adjournment of the annual meeting. At any postponed or adjourned meeting, proxies received pursuant to this Proxy Statement will be voted in the same manner
described in this Proxy Statement with respect to the original meeting.
Stockholders of Record and Beneficial Owners
Many of our stockholders hold their shares through a stockbroker, bank, or other agent rather than directly in their own names. As
summarized below, there are some distinctions between shares held of record and those owned beneficially.
Stockholder
of Record
If your shares are registered directly in your name with our transfer agent, American Stock Transfer and
Trust Company, LLC, you are considered the stockholder of record with respect to those shares, and access to our proxy materials is being provided directly to you by us. As a stockholder of record, you have the right to grant your voting proxy
directly to us or to vote in person at the meeting.
Beneficial Owner
If your shares are held in a stock brokerage account or by a bank, you are considered the beneficial owner of the shares held in
street name. Access to these proxy materials is being provided by your broker who is considered the stockholder of record with respect to those shares. As the beneficial owner, you have the right to direct your broker on how to vote and
are also invited to attend the meeting. However, since you are not the stockholder of record, you may not vote these shares in person at the meeting. Your broker or nominee has enclosed a voting instruction card for your use.
Attendance and Voting by Proxy
If you are a stockholder whose shares are registered in your name, you may vote your shares by one of the following four methods:
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Vote in person,
you may vote in person at the Annual Meeting. We can give you a proxy card or a ballot when you arrive, if requested.
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Vote by Internet
, by going to the web address, http://www.proxypush.com/gsb, and following the instructions for Internet voting.
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Vote by Telephone,
866-390-5419.
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Vote by Mail
, by completing, signing, dating, and mailing the proxy card mailed to you in the envelope provided. If you vote by Internet, please
do not mail your proxy card.
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The deadline for voting electronically through the Internet is 11:59 p.m.,
Eastern Time, on June 3, 2012. If you vote by mail, your signed proxy card must be received before the annual meeting to be counted at the annual meeting.
If your shares are held in street name (through a broker, bank, or other agent), you should have received a separate voting instruction form or you may vote by telephone or on the Internet as
instructed by your broker or bank.
PLEASE NOTE THAT IF YOUR SHARES ARE HELD OF RECORD BY A BROKER, BANK OR OTHER AGENT AND
YOU WANT TO VOTE AT THE MEETING, YOU MUST FIRST OBTAIN A LEGAL PROXY ISSUED IN YOUR NAME FROM THE RECORD HOLDER. YOU WILL NOT BE PERMITTED TO VOTE IN PERSON AT THE MEETING WITHOUT THE LEGAL PROXY.
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The proxies identified on the back of the proxy card will vote the shares of which you are
stockholder of record in accordance with your instructions. If you sign and return your proxy card without giving specific voting instructions, the proxies will vote your shares FOR the nominated slate of directors and FOR
the other proposal. The giving of a proxy will not affect your right to vote in person if you decide to attend the meeting.
If any matters other than those addressed on the proxy card are properly presented for action at the Annual Meeting, the persons named in
the proxy card will have the discretion to vote on those matters in their best judgment, unless authorization is withheld.
Revocation of Proxy
Whether you vote by Internet, by telephone, or by mail, you can change or revoke your proxy before
it is voted at the meeting by:
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Submitting a new proxy card bearing a later date;
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Voting again by the Internet at a later time;
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Giving written notice before the meeting to our Secretary at the address set forth on the cover of this Proxy Statement stating that you are revoking
your proxy; or
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Attending the meeting and voting your shares in person.
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Please note that your attendance at the meeting will not alone serve to revoke your proxy.
Quorum; Vote Requirements
Election of Directors
Directors are elected by a plurality of the votes of the holders of shares of Common Stock present in person or by proxy and entitled to
vote on the election of directors. Under Delaware law, votes that are withheld from a directors election will be counted toward a quorum, but will not affect the outcome of the vote on the election of a director. Abstentions and broker
nonvotes will not be taken into account in determining the outcome of the election.
Ratification of Appointment of
Independent Registered Public Accounting Firm
With respect to Proposal Two, the ratification of the appointment of the
Companys independent registered public accounting firm, an abstention is treated as entitled to vote and, therefore, has the same effect as voting against the proposal. Since this proposal is considered a routine
matter, brokers will be permitted to vote on behalf of their clients if no voting instructions are furnished.
Unless
otherwise instructed or unless authority to vote is withheld, the enclosed proxy card will be voted FOR election of each of the director nominees, and the ratification of Grant Thornton LLP as the Companys independent registered public
accounting firm for fiscal year 2012.
Other Matters
The required vote to approve any matter other than the election of directors is the affirmative vote by the holders of a majority of the
total number of shares of Common Stock present in person or by proxy and entitled to vote on the matter.
Important Note Regarding NYSE
Rules
If a broker does not receive instructions from the beneficial owner of shares held in street name for certain types
of proposals it must indicate on the proxy that it does not have authority to vote such shares (a broker
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non-vote) as to such proposals. Under the rules of the New York Stock Exchange, if your broker does not receive instructions from you, your broker will
not
be able to vote
your shares in the election of directors.
Therefore, it is important that you provide voting instructions to your broker.
Solicitation of Proxies
Proxies will be solicited by mail and the Internet. Proxies may also be solicited personally,
or by telephone, fax, or other means by the directors, officers, and employees of GlobalSCAPE. Directors, officers, and employees soliciting proxies will receive no extra compensation, but may be reimbursed for related out-of-pocket expenses.
GlobalSCAPE will make arrangements with brokerage houses and other custodians, nominees, and fiduciaries to send the proxy materials to beneficial owners. GlobalSCAPE will, upon request, reimburse these brokerage houses, custodians, and other
persons for their reasonable out-of-pocket expenses in doing so. GlobalSCAPE will pay the cost of solicitation of proxies.
4
PROPOSAL ONE
ELECTION OF DIRECTORS
GlobalSCAPEs Articles of Incorporation divide the Board of Directors into three classes of directors serving staggered three-year terms, with one class to be elected at each annual meeting of
stockholders. At this years meeting, two Class III directors are to be elected for a term of three years, to hold office until the expiration of their term in 2015, or until a successor shall have been elected and shall have qualified. The
nominees are James R. Morris and Thomas W. Brown. Mr. Morris is currently a Class III director and is our Chief Executive Officer. Mr. Brown is currently a Class III director and Chairman of the Board of Directors.
Assuming the presence of a quorum, the nominees for director who receive the most votes will be elected. The enclosed form of proxy
provides a means for stockholders to vote for or to withhold authority to vote for the nominees for director. If a stockholder executes and returns a proxy, but does not specify how the shares represented by such stockholders proxy are to be
voted, such shares will be voted FOR the election of the nominee for director. In determining whether this item has received the requisite number of affirmative votes, abstentions and broker non-votes will not be counted and will have no effect.
The Board of Directors recommends a vote FOR the election of the nominees to the Board of Directors.
The following table sets forth the name and age of the nominee as of the mailing date of this Proxy Statement, the principal occupation of
the nominee during the past five years, and the year he began serving as a director of GlobalSCAPE:
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Name
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Age
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Thomas W. Brown
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68
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Mr. Brown has been an independent stockbroker and investment advisor in San Antonio since 1995. He entered the securities brokerage business in 1967 after receiving an M.B.A. from
Southern Methodist University. In recent years, he has also been involved in the real estate development business in San Antonio in addition to stock and bond investments. Mr. Brown currently serves as a member and Chairman of the Board of Directors
of the Company and has served in such capacity since June 2002. Mr. Brown is an experienced investor and our largest stockholder.
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James R. Morris
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60
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For more information, see below under Executive Officers.
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THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE ELECTION OF THE INDIVIDUALS NOMINATED ABOVE AS
DIRECTORS.
Directors with Terms Expiring in 2013 and 2014
The following table sets forth the name and age of each director as of the mailing date of this Proxy Statement, the principal occupation
of each director during the past five years and the year each began serving as a director of GlobalSCAPE.
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David L. Mann
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62
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Mr. Mann has been in the real estate development and home building business since his graduation from Southern Methodist University in 1975 where he earned a B.B.A. For the past
twenty years, he has worked exclusively in the San Antonio, Texas market. Mr. Mann currently serves as a member of the Board of Directors of GlobalSCAPE and has served in such capacity since June 2002. Mr. Mann has broad business and finance
experience and is our second largest stockholder. Mr. Manns term as a director of GlobalSCAPE expires in 2014.
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Frank M. Morgan
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63
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Mr. Morgan is currently Executive Director, Cyber Security, for Mantech Internationals MCTS Group. From 2005 to 2010, Mr. Morgan served as the Vice President and General
Manager of the Information Systems Business Unit, Intelligence Solutions Division, of L-3 Communications Services Group, managing offices in Reston, Virginia, Colorado Springs, Colorado, and San Antonio, Texas. He held a similar position with
Titan Corporation from 2001 to 2005 before its acquisition by L-3. From 1996 to 2001, Mr. Morgan worked for BTG, Inc. (acquired by Titan Corp.), a publicly traded software development company and computer security product value-added reseller. As
Vice President of federal sales, Mr. Morgan was responsible for marketing security products across the federal government. Mr. Morgan spent 30 years in the Air Force, retiring in 1996 as a Colonel. His assignments included three tours at
the Pentagon in both operations and acquisitions. He holds a B.S. in Aeronautical Engineering from the Air Force Academy, a M.S. in Human Resources Management from the University of Utah, and a M.A. in National Security and Strategic Studies from
the Naval War College. Mr. Morgans business experience, particularly his experience in the software industry and in government sales, provides valuable insight to our board. Mr. Morgans term as director of GlobalSCAPE expires in
2013.
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Phillip M. Renfro
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65
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Mr. Renfro is a retired partner of the law firm of Fulbright and Jaworski, L.L.P., where from 1983 to 2005, he was division head of the Corporate, Business, and Banking Section
in the firms San Antonio, Texas office. Prior to his career in corporate law, from 1980 to 1983, he was President and CEO of Resco International, Inc., an oil field service company. From 2004 to 2009, Mr. Renfro served on the board
of Enzon Pharmaceuticals, Inc., a publicly-traded biotech company, where he was also a member of the Audit Committee and the Governance and Nominating Committee. The Company believes that Mr. Renfros legal, financial and business experience,
including a diversified background of managing and directing companies give him the qualifications and skills to serve as a director. In addition, as a former member of Enzons audit committee and as a corporate and securities attorney, Mr.
Renfro has extensive financial reporting and corporate governance experience. Mr. Renfros term as director of GlobalSCAPE expires in 2013.
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Executive Officers
The following table sets forth the name, age, and position of each of our executive officers as of the mailing date of this Proxy
Statement and the principal occupation of each executive officer during the past five years.
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Name
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James R. Morris
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60
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Chief Executive
Officer
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Mr. Morris serves as GlobalSCAPEs Chief Executive Officer. His career includes more than 36 years of innovation and leadership to the fields of information technology,
network security, assurance, and operations for software product companies and professional services organizations. Mr. Morris served in military intelligence, the civil service, and in senior executive positions for leading companies, including
General Dynamics, Veridian, Trident Data Systems, SecureInfo, and prior to joining GlobalSCAPE in September 2008 as President and Chief Executive Officer, Synteras, a government contracting company from February 2007 to September 2008. He is a
recognized expert in the information security industry and has been called upon to serve on numerous industry and government review panels focusing on technology and critical infrastructure matters. Mr. Morris also served as a subject matter expert
on network security delegations to the Peoples Republic of China and Australia. Published internationally and a frequent keynote speaker and panelist at industry conferences, Mr. Morris also has offered his expert views and perspectives on
prime time national news stories of real-world cyber threats.
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Craig A. Robinson
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48
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President and
Chief Operating
Officer
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Mr. Robinson serves as GlobalSCAPEs President and Chief Operating Officer. He has more than 25 years of experience in operations, information technology, information
assurance, and R&D. Mr. Robinson is responsible for integrating and enhancing GlobalSCAPEs business and technical operations across all functions and markets. He has held executive positions for leading companies including Symantec where
he sequentially served in several leadership roles, including VP, Managed Security Services; VP, Solution Delivery; and VP, Worldwide Product Marketing. In addition, he has held senior leadership positions at AXENT Technologies (VP, Operations for
consulting subsidiary SNCi), META Security Group (COO and CTO), Trident Data Systems (Commercial President and CIO), and prior to joining GlobalSCAPE as Chief Operating Officer in October 2008, Synteras (General Manager), a government
contracting company providing IT consulting services from February 2007 to October 2008. Mr. Robinson became our President in December 2011. His executive experience spans companies ranging from start-ups to multi-billion dollar corporations in the
commercial and government sectors. Mr. Robinson holds undergraduate and graduate degrees in engineering, both from Stanford University. He also serves on the Board of Directors of CoreTrace Corporation and is co-author of the reference
Secure
Internet
Practices
(Auerbach Publications).
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Desiree Smith
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48
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Controller,
Interim Principal
Financial and
Accounting
Officer
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Ms. Smith joined GlobalSCAPE in May 2009 and has served as GlobalSCAPEs Corporate Controller since April 2011 and as Assistant Corporate Controller from May 2009 to March
2011. Since February 2012, Ms. Smith has also served as Interim Principal Financial and Accounting Officer. Ms. Smith is responsible for all financial and accounting aspects of GlobalSCAPE, including presenting and reporting financial information,
the preparation and filing of SEC reports including the Form 10-K, Form 10-Q and Form 8-K, as well as managing SOX 404 compliance matters. Prior to joining GlobalSCAPE, Ms. Smith held financial positions of increasing responsibility within the
computer software and real estate industries including Kimco Realty Corporation from January 2009 to May 2009 and USAA Real Estate Company from August 2005 to December 2008. Ms. Smith has experience in accounting for mergers and acquisitions,
dispositions and consolidations as well as specialized GAAP reporting requirements for computer software companies. Ms. Smith graduated from the University of Texas at San Antonio with a B.B.A. degree in Accounting, and is a Certified Public
Accountant in the State of Texas.
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William E. Buie
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56
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Executive Vice
President of
Sales and
Marketing
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Mr. Buie has served as GlobalSCAPEs Executive Vice President of Sales and Marketing since April 2010. Mr. Buie is responsible for GlobalSCAPEs inbound sales,
corporate sales, reseller/channel program, and marketing activities. Before joining GlobalSCAPE, Mr. Buie was the Senior Vice President, Alliance, Channel and Systems Integrator Sales for Fujitsu, a $55 billion global IT services, hardware and
software provider, from November 2008 to January 2010. Prior to Fujitsu, from April 2003 to November 2008, Mr. Buie was the Vice President of Global Strategic Partner Sales for Symantec, managing nearly $1 billion in annual revenue representing more
than 25% of the companys annual total revenue. Prior to Symantec, Mr. Buie was the President and COO of Allure Fusion Media, focused on maximizing the companys pioneering advantage in digital media software. Previously, Mr. Buie was the
Executive Vice President of OneChem, Ltd., an application service provider to the chemical industry and before that Mr. Buie served as marketing director for IBMs Webshare software and as the director of worldwide channel sales for IBM
Software. Mr. Buie holds a B.A. degree in Journalism from the University of Missouri and attended Wharton School of Business, Finance for Executives.
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Doug Conyers
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36
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Senior Vice
President of
Engineering
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Mr. Conyers was named as GlobalSCAPEs Senior Vice President of Engineering in March 2011 and has been employed by GlobalSCAPE since March 2007. Mr. Conyers is responsible
for product management, software development, and quality assurance. Prior to joining GlobalSCAPE in March 2007, he held positions as Chief
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Architect, Director of Systems Engineering, and Senior Software Engineer for SecureLogix Corp., an information security company. Before that, he held software engineering
positions with both the Southwest Research Institute and Paradigm Simulations. Mr. Conyers has a B.S. in Computer Science from Trinity University.
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Mark Perry
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49
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Vice President,
Managed
Solutions
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Mark Perry joined GlobalSCAPE as Vice President of Managed Solutions in 2010, and is responsible for GlobalSCAPEs Managed
Solutions line of business.
Mr. Perry brings to GlobalSCAPE more than 25
years of experience managing IT professional services, telecommunications, consulting, security, and risk management divisions in large, medium, and small businesses. Before joining GlobalSCAPE, from 2008 until 2010, Mr. Perry was Senior Vice
President of Fujitsus Enterprise Business Solutions, managing their $300M Americas professional services group, hardware, and software professional services group. Previously, from 2002 to 2008, Mr. Perry was Vice President of Global
Consulting Services at Symantec, where he developed the business modeling and professional practice standards for the consulting services division, and partner for the Risk and Advisory Services at KPMG, LLP, where he directed the delivery of
information security, privacy, project risk management, audit support, and business continuity services.
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Mr. Perry holds certifications as a Certified Information Systems Security Professional (CISSP) and as a Certified Information Security Manager (CISM).
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James L. Bindseil
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47
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Vice President,
Client Support
Services
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James L. Bindseil joined GlobalSCAPE in 2010 and currently serves as Vice President, Client Support Services. He is responsible for leading the technical support of all
GlobalSCAPE product lines as well as the technical delivery of all Managed Solutions.
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Mr. Bindseil has more than 20 years of experience leading and delivering IT professional services and support for all sizes of both domestic and international businesses. Prior
to joining GlobalSCAPE, from January 2009 to July 2010, Mr. Bindseil served as Vice President of Solutions Engineering and Marketing for Enterprise Business Services at Fujitsu America. Previously, from July 1999 to December 2008, he was Senior
Global Technical Director for the Security Services line of business at Symantec. He also served honorably in the United States Marine Corps.
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Mr. Bindseil graduated with honors from the University of Phoenix with a Bachelor of Arts degree in Management and has an Associate of Arts degree in Mathematics. He also has
professional certifications from Hewlett Packard, Cisco
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Systems, and Microsoft, and is a Certified Information Systems Security Professional (CISSP).
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9
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Name
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Age
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Position
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|
|
Chris A. Hopen
|
|
|
46
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President, TappIn
|
|
Chris Hopen joined GlobalSCAPE in 2011 and currently serves as President of TappIn. He is responsible for integrating and enhancing
TappIns business and technical operations across all functions.
Mr.
Hopen brings more than 20 years of experience as an engineering leader and technologist in networking and security. Prior to establishing TappIn in May 2009, from 1996 to 2007, Mr. Hopen was the co-founder and Chief Technical Officer for Aventail
Corporation, which was acquired by SonicWall (SNWL) in 2007. Mr. Hopen served as VP at SonicWall until June 2008. Mr. Hopen pioneered the SSL-VPN market and technology solution space. His accomplishments include network security-related patents and
Internet Engineering Task Force (IETF) publications as well as being named one of the top 50 IT executives in the service provider sector by InfoWorld. Mr. Hopen holds a B.S. in Computer Science, Mathematics and Economics from Western Washington
University and actively works with the W.W.U. School of Business and Computer Science Advisory Board.
|
Board Meetings and Attendance
During the fiscal year ended December 31, 2011, the Board of Directors held eight meetings. Separate from the full Board of
Directors meetings, there were four Audit Committee meetings, four Compensation Committee meetings and one Nominating and Governance Committee meeting. During 2011, each director attended at least 75% of all Board and applicable Committee
meetings except Mr. Mann who attended five of the eight meetings. During 2011, our directors received compensation for service to GlobalSCAPE as a director. See Executive Compensation Compensation of Directors. GlobalSCAPE
encourages, but does not require, directors to attend the annual meeting of stockholders. At GlobalSCAPEs 2011 Annual Meeting, three members of the Board were present.
Board Leadership Structure
The Board believes
it is in the best interests of the Company to separate the roles of Chief Executive Officer and Chairman of the Board. This structure ensures a greater role for the directors in the oversight of management of the Company and promotes active
participation of the directors in setting meeting agendas and establishing Board priorities and procedures. Further, this structure permits the Chief Executive Officer to focus on the management of the Companys day-to-day operations.
Board Independence
A majority of the members of the Board of Directors, as well as all members of the Audit, Compensation, and Nominating and Governance Committees, are independent, as currently defined by the
Securities and Exchange Commission and the listing standards of the NYSE Amex.
10
Committees of the Board of Directors
GlobalSCAPE has standing Audit, Compensation, and Nominating and Governance Committees.
The Audit Committee is a separately-designated audit committee established in accordance with Section 3(a)(58)(A) of the Exchange
Act. The Audit Committee, which consists of Messers Mann, Morgan, and Renfro, met four times during 2011. The Board has determined that Mr. Renfro, as defined by SEC rules, is an audit committee financial expert and he serves as the Audit
Committee Chairman. The Audit Committee aids management in the establishment and supervision of our financial controls, evaluates the scope of the annual audit, reviews audit results, makes recommendations to our Board regarding the selection of our
independent registered public accounting firm, consults with management and our independent registered public accounting firm prior to the production of financial statements to stockholders and, as appropriate, initiates inquiries into aspects of
our financial affairs. The Audit Committee Report, which begins on page 27, more fully describes the activities and responsibilities of the Audit Committee.
The Compensation Committee, which consists of Messers Mann, Morgan, and Renfro, met four times during 2011. The Compensation Committees role is to establish and oversee GlobalSCAPEs
compensation and benefit plans and policies, administer its stock option plans, and review and approve annually all compensation decisions relating to GlobalSCAPEs executive officers. In the fourth quarter of each year, the chief executive
officer submits to the Compensation Committee his recommendations for salary adjustments and long-term equity incentive awards for the following fiscal year based upon his subjective evaluation of individual performance and his subjective judgment
regarding each executive officers salary and equity incentives, for each executive officer except himself and the president and chief operating officer. The Compensation Committee reviews and discusses the recommendations and has the sole
authority to determine the chief executive officers and the president and chief operating officers base salary, bonus, and equity incentives. The agenda for meetings of the Compensation Committee is determined by its Chairman,
Mr. Mann. At each meeting, the Compensation Committee meets in executive session. The Compensation Committees Chairman reports the Committees recommendations on executive compensation to the Board. The Companys personnel
support the Compensation Committee in its duties and, along with the chief executive officer, may be delegated authority to fulfill certain administrative duties regarding the compensation programs. The Compensation Committee has authority under its
charter to retain, approve fees for and terminate advisors, consultants, and agents as it deems necessary to assist in the fulfillment of its responsibilities but has not, in the past, utilized the services of a third-party consultant to review the
policies and procedures with respect to executive compensation. The Compensation Committee may engage a third party to provide such services in the future, as it deems necessary or appropriate at the time in question.
The Nominating and Governance Committee, which consists of Messers Mann, Morgan, and Renfro, met once during 2011. The primary function
of the Nominating and Governance Committee is to assist the Board in identifying, screening, and recruiting qualified individuals to become Board members and determining the composition of the Board and its committees, including recommending
nominees for annual stockholders meetings or to fill vacancies on the Board.
Each of the Boards committees has a
written charter, and copies of the charters are available for review on the Companys website at
www.globalscape.com
on the Investor Relations page.
Risk Management
The Company has a risk
management program overseen by the principal financial and accounting officer and the president and chief operating officer, both of whom report directly to the chief executive officer. Material risks are identified and prioritized by management,
and each prioritized risk is referred to a Board committee or the full Board for oversight. For example, strategic risks are referred to the full Board while financial risks are referred to the Audit Committee. The Board regularly reviews
information regarding the Companys credit,
11
liquidity, and operations, as well as the risks associated with each, and annually reviews the Companys risk management program as a whole. Also, the Compensation Committee periodically
reviews the most important risks to the Company to ensure that compensation programs do not encourage excessive risk taking. While each committee is responsible for specific risks and overseeing the management of such risks, the entire Board of
Directors is regularly informed through committee reports about such risks.
Code of Ethics
GlobalSCAPE has adopted a Code of Ethics that applies to all of its employees, including the chief executive officer and its principal
financial and accounting officer. This Code is a statement of GlobalSCAPEs high standards for ethical behavior, legal compliance, and financial disclosure, and is applicable to all directors, officers, and employees. A copy of the Code of
Ethics can be found in its entirety on GlobalSCAPEs website at
www.globalscape.com
. Additionally, should there be any changes to, or waivers from, GlobalSCAPEs Code of Ethics, those changes or waivers will be posted immediately on
our website at the address noted above.
Stockholder Communications with Board
The Board of Directors has implemented a process by which stockholders may communicate with the Board of Directors. Any stockholder
desiring to communicate with the Board of Directors may do so in writing by sending a letter addressed to The Board of Directors, c/o The Corporate Secretary. The Corporate Secretary has been instructed by the Board to promptly forward
communications so received to the members of the Board of Directors.
Nominations
The Nominating and Governance Committee is the standing committee responsible for determining the slate of director nominees for election
by stockholders, which the committee recommends for consideration by the Board. All director nominees are approved by the Board prior to annual proxy material preparation and are required to stand for election by stockholders at the next annual
meeting. For positions on the Board created by a directors leaving the Board prior to the expiration of his current term, whether due to death, resignation, or other inability to serve, Article III of the Companys Amended and Restated
Bylaws provides that a director elected by the Board to fill a vacancy shall be elected for the unexpired term of his predecessor in office.
The Nominating and Governance Committee does not currently use any third-party search firm to assist in the identification or evaluation of Board member candidates. The Nominating and Governance Committee
may engage a third party to provide such services in the future, as it deems necessary or appropriate at the time in question.
The Nominating and Governance Committee determines the required selection criteria and qualifications of director nominees based upon the
needs of the Company at the time nominees are considered. A candidate must possess the ability to apply good business judgment and must be in a position to properly exercise his duties of loyalty and care. Candidates should also exhibit proven
leadership capabilities, high integrity, experience with a high level of responsibility within their chosen fields, and have the ability to quickly understand complex principles of, but not limited to, business and finance. Candidates with potential
conflicts of interest or who do not meet this criteria will be identified and disqualified. The Nominating and Governance Committee will consider these criteria for nominees identified by the Committee, by stockholders, or through some other source.
When current Board members are considered for nomination for reelection, the Nominating and Governance Committee also takes into consideration their prior Board contributions, performance, and meeting attendance records.
The Nominating and Governance Committee will consider qualified candidates for possible nomination that are recommended by stockholders.
Stockholders wishing to make such a recommendation may do so by sending
12
the following information to the Nominating and Governance Committee, c/o Corporate Secretary at the address listed above: (1) name of the candidate with brief biographical information and
resume; (2) contact information for the candidate and a document evidencing the candidates willingness to serve as a director if elected; and (3) a signed statement as to the submitting stockholders current status as a
stockholder and the number of shares currently held. Any such nomination must comply with the advance notice provisions of our Amended and Restated Bylaws. These provisions are summarized under Stockholder Proposals to be Presented at Next
Annual Meeting on page 28 of this document.
The Nominating and Governance Committee conducts a process of making a
preliminary assessment of each proposed nominee based upon the resume and biographical information, an indication of the individuals willingness to serve and other background information. This information is evaluated against the criteria set
forth above as well as the specific needs of the Company at that time. Based upon a preliminary assessment of the candidate(s), those who appear best suited to meet the needs of the Company may be invited to participate in a series of interviews,
which are used for further evaluation. The Nominating and Governance Committee uses the same process for evaluating all nominees, regardless of the original source of the information. The Company does not have a formal policy with regard to the
consideration of diversity in identifying director nominees, but the Nominating and Governance Committee strives to nominate directors with a variety of complementary skills so that, as a group, the Board will possess the appropriate talent, skills
and expertise to oversee the Companys businesses.
No candidates for director nominations were submitted to the
Nominating and Governance Committee by any stockholder in connection with the 2012 Annual Meeting.
Composition of the Board of Directors
The Company believes that its Board as a whole should encompass a range of talent, skill, diversity, experience and
expertise enabling it to provide sound guidance with respect to the Companys operations and business goals. In addition to considering a candidates background and accomplishments, candidates are reviewed in the context of the current
composition of the Board and the evolving needs of the Company. The Companys policy is to have at least a majority of its directors qualify as independent as determined in accordance with the listing standards of the NYSE Amex, LLC
and Rule 10A-3 of the Exchange Act. The Nominating and Governance Committee identifies candidates for election to the Board of Directors; reviews their skills, characteristics and experience; and recommends nominees for director to the Board for
approval.
The Nominating and Governance Committee seeks directors with strong reputations and experience in areas relevant to
the strategy and operations of the Company, particularly in the high technology industry and complex business and financial dealings. We believe that each nominee and current director has gained experience in core management skills, such as
strategic and financial planning, public company financial reporting, corporate governance, risk management and leadership development. Many of our directors also have experience serving on boards of directors and board committees of other
companies, as well as charitable organizations and private companies. The Nominating and Governance Committee also believes that each nominee and current director has other key attributes that are important to an effective board: integrity and
demonstrated high ethical standards; sound judgment; analytical skills; the ability to engage management and each other in a constructive and collaborative fashion; diversity of background, experience and thought; and the commitment to devote
significant time and energy to service on the Board and its Committees.
13
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding ownership of our common stock as of April 9, 2012 by
(i) each person known by GlobalSCAPE to be the beneficial owner of more than 5% of the outstanding shares of common stock, (ii) each director of GlobalSCAPE, (iii) the President and CEO, (iv) each of the named executive officers
of GlobalSCAPE, and (v) all executive officers and directors of GlobalSCAPE as a group. Unless otherwise indicated in the footnotes below, each of the named persons has sole voting and investment power with respect to the shares shown as
beneficially owned.
Applicable percentage ownership is based on 18,691,947 shares of common stock outstanding at
April 9, 2012. In computing the number of shares of common stock beneficially owned by a person and the percentage ownership of that person, we deemed to be outstanding all shares of common stock subject to options or restricted stock held by
that person that are currently exercisable or will vest or are exercisable within 60 days of April 9, 2012. The address of each beneficial owner listed in the table below is c/o GlobalSCAPE, Inc., 4500 Lockhill-Selma Rd, Suite 150, San Antonio,
Texas 78249.
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Shares Beneficially
Owned
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Name of Beneficial Owner
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Common
Shares
Currently
Held
(#
of shares)
|
|
|
Common
Shares
That
May
Be
Acquired
within
60
Days
of
April 9,
2012
(#
of
shares)
|
|
|
Total
Beneficial
Ownership
(# of
shares)
|
|
|
Percentage
of
Class
|
|
Thomas W. Brown
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5,708,103
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(1)
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80,000
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|
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5,788,103
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30.97
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%
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David L. Mann
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1,886,024
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80,000
|
|
|
|
1,966,024
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|
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10.52
|
%
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Phillip M. Renfro
|
|
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54,520
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|
|
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80,000
|
|
|
|
134,520
|
|
|
|
*
|
|
Frank M. Morgan
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34,520
|
|
|
|
80,000
|
|
|
|
114,520
|
|
|
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*
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James R. Morris
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160,000
|
|
|
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366,000
|
|
|
|
526,000
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|
|
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2.81
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%
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Desiree Smith
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|
|
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13,450
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|
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13,450
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|
|
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*
|
|
Craig A. Robinson
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100,000
|
|
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366,000
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|
|
|
466,000
|
|
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2.49
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%
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Doug Conyers
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7,710
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|
|
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184,600
|
|
|
|
192,310
|
|
|
|
*
|
|
William E. Buie
|
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74,885
|
|
|
|
99,000
|
|
|
|
173,885
|
|
|
|
*
|
|
Chris Hopen
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|
|
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|
|
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|
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*
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Mark Perry
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|
|
|
|
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30,000
|
|
|
|
30,000
|
|
|
|
*
|
|
James Bindseil
|
|
|
|
|
|
|
28,050
|
|
|
|
28,050
|
|
|
|
*
|
|
All directors and executive officers as a group (12 persons)
|
|
|
8,025,762
|
|
|
|
1,407,100
|
|
|
|
9,432,862
|
|
|
|
50.46
|
%
|
*
|
Denotes ownership of less than 1%.
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(1)
|
Includes 650 shares owned by Mr. Browns spouse. Mr. Brown disclaims beneficial ownership of the shares owned by his spouse.
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14
Equity Compensation Plan Information
The following table gives aggregate information regarding grants under all equity compensation plans of GlobalSCAPE through
December 31, 2011.
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|
Plan Category
|
|
Number of Securities to be
Issued upon Exercise of
Outstanding
Options,
Warrants and Rights
|
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
|
|
|
Number of Securities
Available for
Future Issuance under
Equity Compensation Plans
(Excluding securities
Reflected in Column (A))
|
|
|
|
(A)
|
|
|
(B)
|
|
|
(C)
|
|
|
|
|
|
Equity compensation plans approved by security holders
|
|
|
4,058,320
|
|
|
$
|
1.91
|
|
|
|
1,753,000
|
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Section 16(a) Beneficial Ownership Reporting Compliance
GlobalSCAPE believes, based solely on its review of the copies of Section 16(a) forms furnished to it and written representations
from executive officers and Directors (and its ten percent stockholders), that all Section 16(a) filing requirements were fulfilled on a timely basis except James R. Morris reported on his Form 5 on February 9, 2012 the grant of options to
purchase 160,000 shares of common stock at an exercise price of $1.91 per share which should have been reported in the Form 4 filing he made on December 12, 2011 and Chris A. Hopen reported on his Form 5 on February 9, 2012 his becoming
President of TappIn, GlobalSCAPEs wholly-owned subsidiary, and the grant of options to purchase 125,000 shares of common stock at an exercise price of $1.91 per share on December 5, 2011 which should have been reported in a Form 3 filing
in December 2011.
In making this disclosure, GlobalSCAPE has relied solely on written representations of its Directors and
executive officers (and its ten percent stockholders) and copies of the reports that they have filed with the SEC.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transactions in 2011
Robert Langenbahn, who is one of our Business Development Managers, earned $261,738 in base salary and commissions in 2011.
Mr. Langenbahn is the son-in-law of Thomas W. Brown, our Chairman of the Board. Mr. Langenbahns compensation plan is the same as all other GlobalSCAPE employees who hold a similar position.
Policy Related to Related-Person Transactions
Our Board of Directors has adopted a formal written related-person transaction approval policy, which sets out GlobalSCAPEs policies and procedures for the review, approval, or ratification of
related-person transactions. For these purposes, a related person is a director, nominee for director, executive officer, or holder of more than 5% of our common stock, or any immediate family member of any of the foregoing.
This policy applies to any financial transaction, arrangement, or relationship or any series of similar financial transactions, arrangements, or relationships in which GlobalSCAPE is a participant and in which a related person has a direct or
indirect interest, other than the following:
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payment of compensation by GlobalSCAPE to a related person for the related persons service in the capacity or capacities that give rise to the
persons status as a related person;
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|
|
transactions available to all employees or all stockholders on the same terms;
|
15
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|
|
purchases of supplies from GlobalSCAPE in the ordinary course of business at the same price and on the same terms as offered to our other customers,
regardless of whether the transactions are required to be reported in GlobalSCAPEs filings with the SEC; and
|
|
|
|
transactions, which when aggregated with the amount of all other transactions between the related person and GlobalSCAPE, involve less than $5,000 in a
fiscal year.
|
Our Audit Committee is required to approve any related person transaction subject to this
policy before commencement of the related-person transaction, provided that if the related person transaction is identified after it commences, it shall be brought to the Audit Committee for ratification, amendment, or rescission. The chairman of
our Audit Committee has the authority to approve or take other actions in respect of any related-person transaction that arises, or first becomes known, between meetings of the audit committee, provided that any action by the Chairman must be
reported to our Audit Committee at its next regularly scheduled meeting.
Our Audit Committee will analyze the following
factors, in addition to any other factors the members of the Audit Committee deem appropriate, in determining whether to approve a related-person transaction:
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whether the terms are fair to GlobalSCAPE;
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|
whether the transaction is material to GlobalSCAPE;
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|
|
the role the related person has played in arranging the related-person transaction;
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|
|
|
the structure of the related-person transaction; and
|
|
|
|
the interest of all related persons in the related-person transaction.
|
Our Audit Committee may, in its sole discretion, approve or deny any related-person transaction. Approval of a related-person transaction
may be conditioned upon GlobalSCAPE and the related person following certain procedures designated by the Audit Committee.
16
EXECUTIVE COMPENSATION
Compensation Discussion & Analysis
We compensate our management through a combination of base salary, incentive bonuses and long-term equity based awards in the form of stock options and stock awards which are designed to be competitive
with those of a group of companies which we have selected for comparative purposes in order to attract and retain our executive officers while also creating incentives which will align executive performance with the long-term interests of our
stockholders.
This section discusses the principles underlying our executive compensation policies and decisions and the most
important factors relevant to an analysis of these policies and decisions. It provides qualitative information regarding the manner and context in which compensation is awarded to and earned by our executive officers named in the Summary
Compensation Table below, whom we sometimes refer to as our named executive officers or NEOs, and places in perspective the data presented in the tables and narrative that follow.
Our Compensation Committee
Our Compensation
Committee approves, implements, and monitors all compensation and awards to executive officers including the chief executive officer, chief financial officer, and the other NEOs. The Committees membership is determined by the Board of
Directors and is composed of three non-management directors. The Committee has the authority to delegate any of its responsibilities to subcommittees as the Committee may deem appropriate in its sole discretion. During 2011, the Committee did not
delegate any of its responsibilities.
The Committee periodically approves and adopts, or makes recommendations to the Board
for, GlobalSCAPEs compensation decisions (including the approval of grants of stock options to our named executive officers). In the fourth quarter of each year, the chief executive officer submits his recommendations for salary adjustments
for the following year and long-term equity incentive awards based upon his subjective evaluation of individual and company performance and his subjective judgment regarding each executive officers salary and long-term equity incentives, for
each executive officer except himself and the president and chief operating officer, to the Compensation Committee. The Compensation Committee reviews and discusses the recommendations and has the sole authority to determine the chief executive
officers and the president and chief operating officers base salary, bonus, and equity incentives.
The
Compensation Committee reviewed all components of compensation for our executive officers, including salary, bonuses, long-term equity incentives, the dollar value to the executive, and cost to GlobalSCAPE of all perquisites and all severance and
change of control arrangements. Based on this review, the Compensation Committee determined that the compensation paid to our executive officers reflected our compensation philosophy and objectives.
Compensation Philosophy and Objectives
Our underlying philosophy in the development and administration of GlobalSCAPEs annual, incentive, and long-term compensation plans is that our compensation system should be designed to attract and
retain talented executives while also creating incentives that reward performance and align the interests of our NEOs with those of GlobalSCAPEs stockholders. Key elements of this philosophy are:
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|
|
Establishing base salaries that are competitive with the companies in our comparative group, within GlobalSCAPEs budgetary constraints and
commensurate with GlobalSCAPEs salary structure.
|
|
|
|
Rewarding our NEOs for outstanding company-wide performance as reflected by financial measures, such as sales revenue or net income, or other goals,
such as the consummation of an acquisition and product delivery as well as customer and employee satisfaction and compliance with regulatory requirements.
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17
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|
|
Providing equity-based incentives for our NEOs to ensure that they are motivated over the long term to respond to GlobalSCAPEs business
challenges and opportunities as owners rather than just as employees.
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Attracting and Retaining Executive
Talent.
As a small company, we recognize salary is one component in successfully attracting and
retaining talented executives who will help our company grow. Being mindful of our budgetary responsibilities, we generally set our base salaries between the 50
th
and 75
th
percentile relative to a comparison group consisting of Southwest Regional-based companies with similar common
criteria such as number of employees, industry types, and revenue from Salary.com Professional for small businesses survey data. Salary.com Professional includes data from approximately 10,000 organizations and 2,000,000 incumbents representing 60
countries. The survey provides data on base salary, incentives, equity, and total compensation. This allows us to create competitive total compensation packages for our executive team. Annual adjustments are considered and based on the
companys ability to achieve pre-established revenue and profitability goals.
Rewarding Performance.
We reward outstanding performance with cash bonuses that are based on financial measures, such as sales revenue or net income, or other
goals, such as the consummation of an acquisition or product delivery. For more information on our bonus program, refer to Elements of Executive CompensationIncentive Compensation.
Aligning Executive and Stockholder Interests.
We believe that equity-based compensation provides an incentive to our NEOs to build value for our Company over the long term and aligns the interests of our NEOs and stockholders. We use stock options
because we believe that options will generate value to the recipient only if our stock price increases during the term of the option. The stock options granted to our NEOs vest solely based on the passage of time, other than in the event of a change
of control. We believe that time-vested equity awards encourage long-term value creation and executive retention because executives can realize value from such rewards only if they remain employed by us until the awards vest.
Elements of Executive Compensation
The compensation currently paid to GlobalSCAPEs executive officers consists of three core elements: base salary, bonuses under a performance-based, non-equity incentive plan, and stock option awards
granted pursuant to our 2010 Employee Long-Term Equity Incentive Plan, which we refer to as the 2010 Employee Plan, plus other employee benefits available to all employees of GlobalSCAPE. We believe these elements support our underlying philosophy
of attracting and retaining talented executives while remaining within our budgetary constraints and also creating cash incentives that reward company-wide and individual performance and aligning the interests of our named executive officers with
those of GlobalSCAPEs stockholders by providing the named executive officers equity-based incentives to ensure motivation over the long term. We view the three core elements of compensation as related but distinct. Although we review total
compensation, we do not believe that significant compensation derived from one component should increase or reduce compensation from another component. We determine the appropriate level for each component of compensation separately. We have not
adopted any formal or informal policies or guidelines for allocating compensation among long-term incentives and annual base salary and bonuses, between cash and non-cash compensation, or among different forms of non-cash compensation; however, we
do consider the age, tenure, and seniority of each named executive officer in making compensation decisions.
GlobalSCAPE does
not have any deferred compensation programs or supplemental executive retirement plans and no perquisites are provided to GlobalSCAPEs executive officers that are not otherwise available to all employees of GlobalSCAPE, and no perquisites are
valued in excess of $10,000 per employee.
18
Base Salary
. Being mindful of our budgetary responsibilities, the
base salary for all GlobalSCAPE executive officers are targeted between the 50
th
and 75
th
percentile of the companies in the Salary.com Professional survey. This enables us to attract and retain the necessary talent a small competitive company needs to grow. This salary structure is reviewed annually to ensure its competitiveness within
our peer group. For 2011, the base salaries of our NEOs were in the 47
th
percentile of the Salary.com group.
Base salaries are reviewed annually.
Adjustments are determined during the fourth quarter of each year initially by the chief executive officer with final approval coming from the Compensation Committee. For 2011, base salary increases for Company employees, including NEOs, averaged
3.01%.
Incentive Compensation
. The Compensation Committee believes that paying bonuses helps create financial
incentives for our named executive officers that are tied directly to goals that best reflect their respective duties and responsibilities or the achievement of certain goals. The Compensation Committee may, at its discretion, increase or decrease
bonuses.
During 2011, the bonus opportunity for Messrs. Morris, Robinson and Conyers was specified in their employment
contracts and was set at 40% of base salary for Mr. Morris, 50% of base salary for Mr. Robinson and 35% for Mr. Conyers. The objectives for obtaining these bonuses are determined by the Compensation Committee. For 2011, the amount of
the payable bonus was determined by the Committee on the basis of the Committees subjective assessment of the performance of each of Messrs. Morris, Robinson and Conyers. The Compensation Committee assessed the Companys performance based
upon a number of factors including the Companys revenue for 2011, introduction of acquisition candidates, introduction of new products and Company morale. The Compensation Committee did not establish any specific quantitative targets which the
Company must achieve in order for Messrs. Morris, Robinson and Conyers to be paid their bonuses. On the basis of the Companys performance during 2011, the Compensation Committee approved payment of $90,000 to Mr. Morris, $102,500 for
Mr. Robinson and $56,000 for Mr. Conyers.
During 2011, Mr. Buies incentive compensation consisted of
commissions of .81 percent of non-internet sales plus .5 percent of internet sales.
The bonus plans for the rest of the
management team are determined by the Compensation Committee using the objectives established for the CEO and COO and provide for other individual subjective factors.
Long-Term Equity Incentive Plan
.
GlobalSCAPEs 2010 Employee Plan, which was approved by our stockholders in 2010, authorizes us to grant incentive stock options, non-qualified stock
options, and shares of restricted stock to our named executive officers, as well as to all employees of GlobalSCAPE. A total of 3,000,000 shares of common stock are reserved for issuance under this plan. We use stock options as a form of long-term
compensation because we believe that stock options motivate our executive officers to exert their best efforts on behalf of our stockholders and align the interests of our named executive officers with our stockholders. Vesting is accelerated in
certain events described under Employment Agreements and Potential Payments Upon Termination or Change in Control.
The purpose of the 2010 Employee Plan is to employ and retain qualified and competent personnel and to promote the growth and success of
GlobalSCAPE, which can be accomplished by aligning the long-term interests of the executive officers with those of the stockholders by providing the executive officers an opportunity to acquire an equity interest in GlobalSCAPE. All grants are made
with an exercise price equal to the closing price of our common stock on the date of grant. Each of our NEOs was granted options to purchase shares that vest over three years from their hiring dates. At his hiring date, each NEO is eligible to
receive new grants at the discretion of the Compensation Committee, but not less often than every 24 months. The amount of additional grants may be up to an additional 100,000 options with the exact number determined at the Compensation
Committees and the Boards discretion, and based upon input from the CEO. We do not time stock option grants in coordination with the release of material non-public information.
19
Other Employee Benefits
. GlobalSCAPEs executive officers are eligible to
participate in all of our employee benefit plans, such as medical, dental, group life, and long-term disability insurance, in each case on the same basis as other employees. GlobalSCAPEs executive officers are also eligible to participate in
our 401(k) plan on the same basis as other employees. GlobalSCAPEs Board of Directors, at its sole discretion, may authorize GlobalSCAPE to match (in part or in whole) the contributions of each employee to the 401(k) plan during a given year;
GlobalSCAPE contributions may be in the form of cash.
Impact of Regulatory Requirements
Deductibility of Executive Compensation.
In 1993, the federal tax laws were amended to limit the deductions a publicly-held company
is allowed for compensation paid to the chief executive officer and to the four most highly compensated executive officers other than the chief executive officer. Generally, amounts paid in excess of $1.0 million to a covered executive, other than
performance-based compensation, cannot be deducted. In order to constitute performance-based compensation for purposes of the tax laws, stockholders must approve the performance measures. Since GlobalSCAPE does not anticipate that the compensation
for any executive officer will exceed the $1.0 million threshold in the near term, stockholder approval necessary to maintain the tax deductibility of compensation at or above that level is not being requested. We will reconsider this matter if
compensation levels approach this threshold, in light of the tax laws then in effect. We will consider ways to maximize the deductibility of executive compensation, while retaining the discretion necessary to compensate executive officers in a
manner commensurate with performance and the competitive environment for executive talent.
Policy on Recovery of
Compensation.
Our CEO and CFO are required to repay certain bonuses and stock-based compensation they receive if we are required to restate our financial statements as a result of misconduct, as required by Section 304 of the Sarbanes-Oxley
Act of 2002. In addition, the employment agreement for the COO stipulates that he is required to repay certain bonuses if we are required to restate our financial statements as a result of misconduct as well.
Risk Considerations in our Compensation Program
During 2011, the Compensation Committee reviewed the Companys compensation policies and practices in response to current public and regulatory concern about the link between incentive compensation
and excessive risk taking by corporations. The committee concluded that the Companys compensation program does not motivate imprudent risk taking and any risks involved in compensation are not reasonably likely to have a material adverse
effect on the Company. In reaching this conclusion, the Committee determined the following:
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the Companys annual incentive compensation is based on balanced performance metrics that promote progress towards longer-term Company goals;
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|
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the Companys compensation programs are capped at reasonable levels, as determined by a review of the Companys budgetary constraints,
economic position and prospects, as well as the compensation offered by comparable companies; and
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|
|
the oversight of the Compensation Committee in the operation of incentive plans and the high level of board involvement in approving material
investments.
|
Compensation Committee Report
The Compensation Committee of GlobalSCAPE has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b)
of Regulation S-K with management and, based on such review and discussions, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement.
20
This report is submitted by the members of the Compensation Committee, which consists of the
following directors:
David L. Mann (Chairman)
Frank M. Morgan
Phillip M. Renfro
Summary Compensation Table
The following table sets forth a summary of compensation for the fiscal years ended December 31, 2011 and 2010 that GlobalSCAPE paid to each of its named executive officers.
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name & Principal Position
|
|
Year
|
|
|
Salary
|
|
|
Bonus
|
|
|
Option
Awards
(3)
|
|
|
Non-Equity
Incentive Plan
Compensation
|
|
|
Total
|
|
James R. Morris
|
|
|
2011
|
|
|
$
|
250,000
|
|
|
$
|
90,000
|
|
|
$
|
187,154
|
|
|
$
|
|
|
|
$
|
527,154
|
|
Chief Executive Officer
|
|
|
2010
|
|
|
$
|
240,384
|
|
|
$
|
100,000
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
340,384
|
|
|
|
|
|
|
|
|
Craig Robinson
|
|
|
2011
|
|
|
$
|
225,000
|
|
|
$
|
102,500
|
|
|
$
|
187,154
|
|
|
$
|
|
|
|
$
|
514,654
|
|
President and Chief Operating Officer
|
|
|
2010
|
|
|
$
|
216,446
|
|
|
$
|
112,500
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
328,946
|
|
|
|
|
|
|
|
|
William E. Buie
|
|
|
2011
|
|
|
$
|
175,000
|
|
|
$
|
|
|
|
$
|
35,091
|
|
|
$
|
182,774
|
|
|
$
|
392,865
|
|
Executive Vice President of Sales and Marketing
|
|
|
2010
|
|
|
$
|
121,154
|
(1)
|
|
$
|
25,000
|
(2)
|
|
$
|
131,100
|
|
|
$
|
107,857
|
|
|
$
|
385,111
|
|
|
|
|
|
|
|
|
Doug Conyers
|
|
|
2011
|
|
|
$
|
160,000
|
|
|
$
|
56,000
|
|
|
$
|
206,003
|
|
|
$
|
|
|
|
$
|
422,003
|
|
Senior Vice President of Engineering
|
|
|
2010
|
|
|
$
|
146,154
|
|
|
$
|
53,200
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
199,354
|
|
(1)
|
Represents the portion of Mr. Buies salary from his date of hire, April 12, 2010, through the end of the fiscal year.
|
(2)
|
Amount represents the signing bonus earned by Mr. Buie at the inception of his employment.
|
(3)
|
These amounts represent the aggregate grant date fair value of option awards for fiscal year 2011 and fiscal year 2010, respectively, calculated in accordance with FASB
ASC Topic 718. See note 2 of the notes to our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 29, 2012 for a discussion of all assumptions made in the
calculation of this amount. These amounts do not represent the actual amounts paid to or realized by the named executive officer for these awards during fiscal years 2011 or 2010. The value as of the grant date for stock options is recognized over
the period of service required for the grant to become vested.
|
Relationship of Salary and Annual
Incentive Compensation to Total Compensation
The following table sets forth the relationship of salary and annual
incentive compensation to total compensation for the CEO and the remaining NEOs for 2011.
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|
|
|
|
|
|
|
Executive
|
|
Percentage of
Salary to Total
Compensation
|
|
|
Percentage of Annual
Cash Incentive Payment
to Total Compensation
|
|
James R. Morris
|
|
|
47.42
|
%
|
|
|
17.07
|
%
|
Craig Robinson
|
|
|
43.70
|
%
|
|
|
19.90
|
%
|
William E. Buie
|
|
|
44.50
|
%
|
|
|
46.52
|
%
|
Doug Conyers
|
|
|
37.91
|
%
|
|
|
13.27
|
%
|
21
Employment Agreements and Potential Payments Upon Termination or Change in
Control
GlobalSCAPE has entered into employment agreements with each of our named executive officers pursuant to which
each will receive compensation as determined from time to time by the Board in its sole discretion
The employment agreements
for Messrs. Morris, Robinson, Conyers and Buie are scheduled to terminate on December 31, 2014. The employment agreement for each of Messrs. Morris and Robinson provides that if his employment with the Company terminates under certain
circumstances, the Company will pay him an amount equal to his base salary in effect at the date of termination for eighteen (18) months following the date of termination and, if after a Change in Control, a lump sum equal to 1.5 times his
annual base salary. The employment agreements for Messers. Conyers and Buie include a similar provision that will pay him an amount equal to his base salary in effect at the date of termination for twelve (12) months following the date of
termination or, if after a Change in Control, his base salary times 1.5 in one lump sum.
A Change in Control occurs under the
employment agreements when (a) any person or group (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the beneficial owner, directly or
indirectly, of securities representing 50% or more of the combined voting power of the Companys then outstanding securities, (b) any person or group shall make a tender offer or an exchange offer for 50% or more of the combined voting
power of the Companys then outstanding securities, (c) at any time during any period of two consecutive years, individuals who at the beginning of such period constituted the board of directors of the Company cease for any reason to
constitute a majority of the board, (d) the Company shall consolidate, merge or exchange securities with any other entity where the stockholders of the Company immediately before the effective time of such transaction do not beneficially own,
immediately after the effective time of such transaction, shares or other equity interests entitling such stockholders to a majority of all votes, or (e) any person or group acquires all or substantially all of the Companys
assets.
The employment agreements for Messers. Morris, Robinson, Conyers and Buie contain the following defined terms:
Cause means termination upon
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the continued failure by employee to substantially perform his duties with the Company (other than any such failure resulting from his incapacity due
to Disability or any such actual or anticipated failure resulting from termination by employee for Good Reason) after a written demand for substantial performance is delivered to employee by the Board, which demand specifically identifies the manner
in which the Board believes that employee has not substantially performed his duties;
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|
employee engages in conduct which is demonstrably and materially injurious to the Company or any of its affiliates, monetarily or otherwise;
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|
employee commits fraud, bribery, embezzlement or other material dishonesty with respect to the business of the Company or any of its affiliates, or the
Company discovers that employee has committed any such act in the past with respect to a previous employer;
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|
employee is indicted for any felony or any criminal act involving moral turpitude, or the Company discovers that employee has been convicted of any
such act in the past;
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|
employee commits a breach of any of the covenants, representations, terms or provisions of the employment agreement;
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|
|
employee violates any instructions or policies of the Company with respect to the operation of its business or affairs; or
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|
|
employee uses illegal drugs.
|
22
For Messrs Morris, Robinson, Conyers and Buie Good Reason means,
without the officers express written consent, any of the following:
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|
the material failure by the Company, without employees consent, to pay to employee any portion of his current compensation within ten
(10) days of the date any such compensation payment is due; or
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|
Employer commits a material breach of any of the covenants, representations, terms or provisions hereof, and such breach is not cured within thirty
(30) days after written notice thereof to the Company, which notice shall identify in reasonable detail the nature of the breach and gives Company an opportunity to respond, excluding, however, failure to pay salary within ten (10) days as
further provided above;
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|
any material diminution of employees title, function, duties, authority or responsibilities (including reporting requirements); or
|
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|
|
a reduction in employees salary as in effect on the date of the employment agreement or as may be increased from time to time; or
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|
|
a material reduction in the benefits that are in effect from time to time for employee; or
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|
|
|
a relocation of the employees principal place of employment to a location which is beyond a 50 mile radius from San Antonio, Texas.
|
If, during the term of the employment agreement for each named executive officer or any extension thereof, an
officers employment is terminated other than for Cause or Disability, by reason of the officers death or Retirement, or by such officer for Good Reason, then such officer will be entitled to receive the following:
|
|
Morris and Robinson
: his annual base salary for a period of 18 months.
|
|
|
Conyers and Buie
: his annual base salary for a period of 12 months.
|
If any lump sum payment to a named executive officer would individually or together with any other amounts paid or payable constitute an excess parachute payment within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended, and applicable regulations thereunder, the amounts to be paid will be increased so that each named executive officer, as the case may be, will be entitled to receive the amount of
compensation provided in his contract after payment of the tax imposed by Section 280G.
In addition, unvested options that have been
awarded to our named executive officers will vest upon any change in control.
The table below contains information concerning termination and
change in control payments to each of our named executive officers as if the event occurred on December 31, 2011.
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|
|
|
|
|
|
|
|
|
|
|
|
|
Name & Principal Position
|
|
Benefit
|
|
Before Change in
Control
Termination Without
Cause or for
Good
Reason
|
|
|
Change of
Control (1)
|
|
|
After Change in
Control
Termination Without
Cause or for
Good
Reason
|
|
James R. Morris
|
|
Severance
|
|
$
|
375,000
|
|
|
$
|
|
|
|
$
|
750,000
|
|
Chief Executive Officer
|
|
Award Acceleration
|
|
$
|
|
|
|
$
|
53,910
|
|
|
$
|
53,910
|
|
|
|
|
|
|
Craig Robinson
|
|
Severance
|
|
$
|
375,000
|
|
|
$
|
|
|
|
$
|
750,000
|
|
President and Chief Operating Officer
|
|
Award Acceleration
|
|
$
|
|
|
|
$
|
94,710
|
|
|
$
|
94,710
|
|
|
|
|
|
|
Doug Conyers
|
|
Severance
|
|
$
|
160,000
|
|
|
$
|
|
|
|
$
|
240,000
|
|
Senior Vice President of Engineering
|
|
Award Acceleration
|
|
$
|
|
|
|
$
|
39,196
|
|
|
$
|
39,196
|
|
|
|
|
|
|
William E. Buie
|
|
Severance
|
|
$
|
175,000
|
|
|
|
|
|
|
$
|
262,500
|
|
Executive Vice President of
Sales and Marketing
|
|
Award Acceleration
|
|
$
|
|
|
|
$
|
94,500
|
|
|
$
|
94,500
|
|
23
(1)
|
The amounts on the option acceleration row reflect the intrinsic value of equity awards and are based upon the closing price for a share of our common stock of $1.98 on
December 31, 2011 minus the exercise price.
|
Outstanding Equity Awards at Fiscal-Year End
The table below contains certain information concerning outstanding option awards at December 31, 2011 for our named
executive officers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTION AWARDS
|
|
Name
|
|
Number of Securities
Underlying
Unexercised Options
(#)
Exercisable
|
|
|
Number of Securities
Underlying
Unexercised Options
(#)
Unexercisable
|
|
|
Option
Exercise
Price
($/Share)
|
|
|
Option
Expiration Date
|
|
James R. Morris
|
|
|
66,000
|
|
|
|
34,000
|
|
|
$
|
1.83
|
|
|
|
10/1/2019
|
|
Chief Executive Officer
|
|
|
300,000
|
|
|
|
|
|
|
$
|
1.55
|
|
|
|
9/2/2018
|
|
|
|
|
|
|
|
160,000
|
|
|
$
|
1.91
|
|
|
|
12/5/2021
|
|
|
|
|
|
|
Craig Robinson
|
|
|
300,000
|
|
|
|
|
|
|
$
|
1.15
|
|
|
|
10/6/2018
|
|
President and Chief Operating Officer
|
|
|
66,000
|
|
|
|
34,000
|
|
|
$
|
1.83
|
|
|
|
10/1/2019
|
|
|
|
|
|
|
|
160,000
|
|
|
$
|
1.91
|
|
|
|
12/5/2021
|
|
|
|
|
|
|
Doug Conyers
|
|
|
9,900
|
|
|
|
5,100
|
|
|
$
|
1.47
|
|
|
|
12/4/2019
|
|
Senior Vice President of Engineering
|
|
|
44,550
|
|
|
|
45,450
|
|
|
$
|
0.85
|
|
|
|
1/8/2019
|
|
|
|
100,000
|
|
|
|
|
|
|
$
|
3.00
|
|
|
|
4/9/2017
|
|
|
|
|
|
|
|
20,000
|
|
|
$
|
2.10
|
|
|
|
1/3/2021
|
|
|
|
|
|
|
|
70,000
|
|
|
$
|
2.60
|
|
|
|
3/30/2021
|
|
|
|
|
|
|
|
50,000
|
|
|
$
|
1.91
|
|
|
|
12/5/2021
|
|
|
|
|
|
|
William E. Buie
|
|
|
49,500
|
|
|
|
100,500
|
|
|
$
|
1.35
|
|
|
|
4/12/2020
|
|
Executive Vice President of Sales and Marketing
|
|
|
|
|
|
|
30,000
|
|
|
$
|
1.91
|
|
|
|
12/5/2021
|
|
Pension Benefits
GlobalSCAPE does not sponsor any pension benefit plans and none of the named executive officers contribute to such a plan.
Non-Qualified Deferred Compensation
GlobalSCAPE does not sponsor any non-qualified defined compensation plans or other non-qualified deferred compensation plans.
Compensation of Directors
The Board of
Directors has the authority to determine the amount of compensation to be paid to its members for their services as directors and committee members and to reimburse directors for their expenses incurred in attending meetings.
During 2011, each director received a monthly fee of $4,000. Mr. Brown also receives an additional fee of $1,000 per month for
serving as Chairman of the Board of Directors. Employee directors are not compensated for their service as directors.
24
In addition to the monthly fee, each of our non-employee directors receives a grant of
either 20,000 option shares of our common stock or a grant of restricted stock under the GlobalSCAPE, Inc. 2006 Non-Employee Directors Long-Term Equity Incentive Plan, or the 2006 Directors Plan. Under this plan, a maximum of 500,000 shares of
GlobalSCAPE common stock may be awarded. At April 4, 2012, options to purchase a total of 160,000 shares were outstanding of which 160,000 were vested, and 80,000 restricted stock awards were outstanding of which 53,420 were vested.
The 2006 Directors Plan is administered by the Compensation Committee of the Board of Directors which sets the exercise price, term, and
other conditions applicable to each stock option granted under the Plan. If options, as opposed to restricted stock shares, are awarded, the exercise share price shall be no less than 100% of the fair market value on the date of the award while the
option terms and vesting schedules are at the discretion of the Compensation Committee. The 2006 Directors Plan provides that each year, at the first regular meeting of the Board of Directors immediately following GlobalSCAPEs annual
stockholders meeting, each non-employee director shall be granted or issued awards of 20,000 share options or 20,000 shares of restricted stock of GlobalSCAPE common stock, for participation in Board and Committee meetings during the previous
calendar year. The maximum annual award for any one person is 20,000 share options or shares of restricted stock of GlobalSCAPE common stock. In 2011, the Compensation Committee granted 20,000 shares of restricted stock which vest in June 2012 to
each of the directors other than Mr. Morris under this plan.
The following table sets forth a summary of compensation
for the fiscal year ended December 31, 2011 that GlobalSCAPE paid to each director. GlobalSCAPE does not sponsor a pension benefits plan, a non-qualified deferred compensation plan or a non-equity incentive plan for our directors; therefore,
these columns have been omitted from the following table.
Director Compensation Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Fees Earned
or Paid in Cash
|
|
|
Stock
Awards (1)
|
|
|
All Other
Compensation (2)
|
|
|
Total
|
|
Thomas W. Brown
|
|
$
|
60,000
|
|
|
$
|
43,200
|
|
|
$
|
9,398
|
|
|
$
|
112,598
|
|
David L. Mann
|
|
$
|
48,000
|
|
|
$
|
43,200
|
|
|
$
|
9,398
|
|
|
$
|
100,598
|
|
Frank M. Morgan
|
|
$
|
48,000
|
|
|
$
|
43,200
|
|
|
$
|
13,817
|
|
|
$
|
91,200
|
|
Phillip M. Renfro
|
|
$
|
48,000
|
|
|
$
|
43,200
|
|
|
$
|
13,817
|
|
|
$
|
105,017
|
|
(1)
|
These amounts represent the aggregate grant date fair value of restricted stock awards for fiscal year 2011 calculated in accordance with FASB ASC Topic 718. See note 2
of the notes to our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 29, 2012 for a discussion of all assumptions made in the calculation of this amount.
|
(2)
|
Consists of premiums on health and dental insurance.
|
Outstanding Equity Awards at Fiscal-Year End Table
The table below
contains certain information concerning outstanding option and stock awards at December 31, 2011 for each of the directors.
|
|
|
|
|
|
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Name
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Option
Awards
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Stock
Awards
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Thomas W. Brown
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60,000
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20,000
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David L. Mann
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60,000
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20,000
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Frank M. Morgan
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60,000
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20,000
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Phillip M. Renfro
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60,000
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20,000
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25
PROPOSAL TWO
RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
GlobalSCAPEs Audit Committee has selected
Grant Thornton LLP to serve as our independent registered public accounting firm for the fiscal year ending December 31, 2012. Although stockholder ratification is not required, the Board of Directors has directed that the selection of Grant
Thornton LLP be submitted to the stockholders for ratification at the annual meeting. A representative of Grant Thornton LLP will be present at the annual meeting, will have an opportunity to make a statement if he desires to do so, and will be
available to respond to appropriate questions.
The affirmative vote of the holders of a majority of the votes cast is
required to ratify the selection of Grant Thornton LLP. In the event the stockholders fail to ratify the appointment, the Board may reconsider its appointment for this year. Even if the appointment is ratified, the Board, in its discretion, may, if
circumstances dictate, direct the appointment of a different independent registered public accounting firm at any time during the year if the Board determines that such a change would be in the Companys and its stockholders best
interests.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE RATIFICATION OF THE SELECTION OF GRANT THORNTON LLP AS
GLOBALSCAPES INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2012.
PRINCIPAL AUDITOR FEES AND SERVICES
Audit Fees
. The aggregate fees billed for professional services
rendered by Grant Thornton in connection with their audits of our consolidated financial statements and reviews of the condensed financial statements included in our Quarterly Reports on Form 10-Q and services that were provided in connection with
statutory and regulatory filings or engagements were $229,950 and $191,871 for Grant Thornton in 2011 and 2010, respectively.
Audit-Related Fees.
The aggregate fees paid to Grant Thornton in 2011 for services other than the audit or review of
GlobalSCAPEs financial statements were $22,100. There were no such fees paid in 2010.
All Other Fees
. There
were no aggregate fees billed for other services, exclusive of the fees disclosed above relating to financial statement audit services, rendered by Grant Thornton during the years ended December 31, 2011 or December 31, 2010.
Consideration of Non-Audit Services Provided by the Independent Auditors
. The Audit Committee has considered whether the services
provided for non-audit services are compatible with maintaining Grant Thorntons independence, and has concluded that the independence of such firm has been maintained.
AUDIT COMMITTEE PRE-APPROVAL POLICY
The Audit
Committees policy is to pre-approve all audit, audit-related and non-audit services provided by the independent auditors. These services may include audit services, audit-related services, tax services, and other services. The Audit Committee
may also pre-approve particular services on a case-by-case basis. The independent auditors are required to periodically report to the Audit Committee regarding the extent of services provided by the independent auditors in accordance with such
pre-approval. The Audit Committee may also delegate pre-approval authority to one or more of its members. Such member(s) must report any decisions to the Audit Committee at the next scheduled meeting.
26
AUDIT COMMITTEE REPORT
The Audit Committee reviews GlobalSCAPEs financial reporting process on behalf of the Board of Directors. Management has the
primary responsibility for the financial statements and the reporting process, including the system of internal controls. The Audit Committee is responsible for engaging independent auditors to perform an independent audit of GlobalSCAPEs
consolidated financial statements in accordance with generally accepted accounting principles, to perform an independent audit of GlobalSCAPEs internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley
Act of 2002, and to issue reports thereon. The Committee reviews and oversees these processes, including oversight of (i) the integrity of GlobalSCAPEs financial statements, (ii) GlobalSCAPEs independent auditors
qualifications and independence, (iii) the performance of GlobalSCAPEs independent auditors, and (iv) GlobalSCAPEs compliance with legal and regulatory requirements.
In this context, the Committee hereby reports as follows:
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1.
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The Audit Committee has reviewed and discussed the audited financial statements with GlobalSCAPEs management.
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2.
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The Audit Committee has discussed with the independent registered public accounting firm the matters required to be discussed by the Statement on Auditing Standards
No. 114, as amended (Codification of Statements on Auditing Standards, AU 380), as adopted by the Public Company Accounting Oversight Board (PCAOB) in Rule 3200T.
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3.
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The Audit Committee has received the written disclosures and the letter from the independent registered public accounting firm required by the PCAOB regarding the
independent registered public accounting firms communications with the Audit Committee concerning independence, and has discussed with the independent registered public accounting firm its independence.
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4.
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Based on the review and discussions referred to in paragraphs (1) through (3) above, the Audit Committee recommended to the Board, and the Board has approved,
that the audited financial statements be included in GlobalSCAPEs Annual Report on Form 10-K for the year ended December 31, 2011, for filing with the Securities and Exchange Commission.
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This report is submitted by the members of the Audit Committee.
Phillip M. Renfro (Chairman)
David L. Mann
Frank M. Morgan
27
STOCKHOLDER PROPOSALS TO BE PRESENTED AT NEXT ANNUAL MEETING
You may submit proposals for consideration at future stockholder meetings. For a stockholder proposal to be considered
for inclusion in our proxy statement for the annual meeting next year, the Corporate Secretary must receive the written proposal at our principal executive offices no later than December 25, 2012. Such proposals also must comply with SEC
regulations under Rule 14a-8 regarding the inclusion of stockholder proposals in company-sponsored proxy materials. Proposals should be addressed to:
Corporate Secretary
4500 Lockhill Selma Rd, Suite 150
San Antonio, TX 78249
For a stockholder proposal that is not intended to be included in our proxy statement under Rule 14a-8, the stockholder must provide the information required by our Bylaws and give timely notice to the
Corporate Secretary in accordance with our Bylaws, which, in general require that the notice be received by the Corporate Secretary:
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Not earlier than the close of business on March 6, 2013; and
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Not later than the close of business on April 5, 2013.
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If the date of the stockholder meeting is moved more than 30 days after the anniversary of our annual meeting
for the prior year, then notice of a stockholder proposal that is not intended to be included in our proxy statement under Rule 14a-8 must be received no later than the 10
th
day following the date on which a notice of the date of the annual meeting is mailed or the date of the meeting is
publicly announced.
AVAILABLE INFORMATION
We are a reporting company under the Securities Exchange Act of 1934, as amended, and file annual, quarterly, and special reports and
other information with the SEC. You may read and copy any material that we file with the SEC at the SECs Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain more information about the SECs Public
Reference Room by calling 1-800-SEC-0330. The SEC also maintains an Internet site that contains all of these reports and other information regarding our company and other issuers that file electronically with the SEC at http://www.sec.gov. We also
post links to our SEC filings at our web site at http://www.globalscape.com.
You may request a copy of GlobalSCAPEs
annual, quarterly, and current reports, proxy statements, and other information at no cost, including our annual report on Form 10-K, including financial statements and schedules thereto, for the year ended December 31, 2011, by writing or
telephoning GlobalSCAPE at the following address:
Chief Financial Officer
GlobalSCAPE, Inc.
4500 Lockhill Selma, Suite 150
San Antonio, Texas 78249
(210) 308-8267
28
OTHER MATTERS
As of the date of this Proxy Statement, the Board of Directors does not know of any other matter that will be brought before the annual
meeting. However, if any other matter properly comes before the annual meeting, or any adjournment thereof, the person or persons voting the proxies will vote on such matters in accordance with their best judgment and discretion.
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By Order of the Board of Directors,
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James R. Morris
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Chief Executive Officer
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April 23, 2012
San Antonio, TX
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GLOBALSCAPE,
INC.
4500 LOCKHILL SELMA RD, SUITE 150
SAN ANTONIO, TX 78249
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VOTE BY INTERNET -
www.proxyvote.com
Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when
you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS
If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements,
proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy
materials electronically in future years.
VOTE BY PHONE -
1-800-690-6903
Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the
cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.
VOTE BY MAIL
Mark, sign and date your proxy card and return it in the postage-paid envelope we
have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.
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TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
M46072-P20160
KEEP THIS PORTION FOR YOUR RECORDS
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THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
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DETACH AND RETURN THIS PORTION ONLY
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GLOBALSCAPE, INC.
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For
All
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Withhold
All
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For All
Except
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To withhold authority to vote for any individual nominee(s), mark For All Except and write the number(s) of
the nominee(s) on the line below.
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The Board of Directors recommends you vote FOR the following:
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¨
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¨
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¨
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1. Election of Directors
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Nominees:
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01) Thomas W. Brown
02) James R. Morris
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For
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Against
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Abstain
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The Board of Directors recommends you vote FOR proposal 2.
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2. To ratify the appointment of Grant Thornton, LLP as the Companys
independent registered public accounting firm for the year ending December 31, 2012.
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¨
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¨
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¨
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3. To transact any other business that may properly come before the meeting
or any adjournment thereof, including a motion to adjourn or postpone the meeting.
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Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other
fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.
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Signature [PLEASE SIGN WITHIN BOX]
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Date
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Signature (Joint Owners)
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Date
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Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
The Annual Report and Notice and Proxy Statement are available at
www.proxyvote.com
.
M46073-P20160
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GLOBALSCAPE, INC.
Annual
Meeting of Stockholders
June 4, 2012 2:00 PM
This proxy is solicited by the Board of Directors
The undersigned hereby appoints James R. Morris and Desiree Smith, and each of them, proxies with power of substitution to vote on behalf of the undersigned all shares of common stock that the undersigned may be
entitled to vote at the Annual Meeting of Stockholders of GlobalSCAPE, Inc. (the Company) on June 4, 2012, and all adjournments and postponements thereof, with all powers that the undersigned would possess if personally present,
with respect to the following:
The shares
represented by this proxy will be voted as specified on the reverse side, but if no specification is made, this proxy will be voted FOR the following proposals:
1. To elect the following two Directors to serve for a term of
three years: Thomas W. Brown and James R. Morris.
2. To ratify the appointment of Grant Thornton, LLP as the Companys independent registered public accounting firm for the year ending
December 31, 2012.
3. To transact any
other business that may properly come before the meeting or any adjournment thereof, including a motion to adjourn or postpone the meeting.
The proxies are authorized to vote in their discretion as to all other matters that may come before this meeting and all matters incidental to
the conduct of this Meeting. A majority of the proxies or substitutes at the meeting may exercise all the powers granted thereby.
Continued and to be signed on reverse side
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Globalscape (AMEX:GSB)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Globalscape (AMEX:GSB)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024