Delaware
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33-1135689
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.001 Par Value
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NASDAQ Global Market
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o
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Smaller reporting company x
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(Do not check if a smaller reporting company)
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Page
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PART III
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1 | ||
5 | ||
PART IV
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8 | ||
9 | ||
Name and Principal Position
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Year
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Salary ($)
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Bonus ($)
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Equity Awards (1) ($)
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All Other Compensation ($)
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Total ($)
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Gregory M. Swayne
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Chairman and Chief Executive Officer (2)
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2010
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$ | 300,000 | $ |
—
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$ | 356,400 | $ |
—
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$ | 656,400 | ||||||||||
2009
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$ | 238,786 | $ |
—
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$ | 151,700 | $ |
—
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$ | 390,486 | |||||||||||
Shawn G. Meredith
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Chief Financial Officer
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2010
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$ | 200,059 | $ |
—
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$ |
—
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$ |
—
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$ | 200,059 | ||||||||||
2009
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$ | 200,236 | $ |
—
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$ | 83,250 | $ |
—
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$ | 283,486 | |||||||||||
Eric J. Orme
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Chief Technology Officer
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2010
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$ | 250,000 | $ |
—
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$ | 356,400 | $ |
—
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$ | 606,400 | ||||||||||
2009
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$ | 194,663 | $ |
—
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$ | 83,250 | $ |
—
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$ | 277,913 |
(1)
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Amounts in this table reflect the total grant date fair value for awards granted in 2010 and 2009 and do not reflect actual compensation realized by our named executive officers. The aggregate grant date fair value of restricted stock and options awards granted within the fiscal year was determined in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 for stock-based compensation.
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(2)
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Mr. Swayne became our Chief Executive Officer on September 28, 2009.
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Name
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Number of Securities Underlying Unexercised Options
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Options Exercise Price
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Option
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||||||||||
($)
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Expiration Date
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Exercisable
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Unexercisable
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(#)
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(#)
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Gregory M. Swayne
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10,000
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—
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$
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65.00
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August 23, 2016
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Gregory M. Swayne
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10,000
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—
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$
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71.00
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October 10, 2017
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Gregory M. Swayne
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1,002
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—
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$
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32.50
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August 12, 2018
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Gregory M. Swayne
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20,000
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21,000
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$
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3.90
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November 5, 2019
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Gregory M. Swayne
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—
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60,000
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$
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6.06
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September 21, 2020
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Shawn G. Meredith
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1,667
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833
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$
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38.00
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May 28, 2018
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Shawn G. Meredith
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1,667
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833
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$
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32.50
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August 12, 2018
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Shawn G. Meredith
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334
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—
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$
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32.50
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August 12, 2018
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Shawn G. Meredith
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9,167
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13,333
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$
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3.85
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November 20, 2019
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Eric J. Orme
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2,500
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—
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$
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70.30
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November 9, 2017
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Eric J. Orme
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334
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—
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$
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32.50
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August 12, 2018
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Eric J. Orme
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10,272
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12,228
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$
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3.90
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November 5, 2019
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Eric J. Orme
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—
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60,000
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$
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6.06
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September 21, 2020
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Name (1)
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Fees
Earned
or Paid in Cash (2)
($)
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Stock
Awards
($)
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Option Awards
($)
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All Other Compensation
($)
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Total (3)
($)
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Jeffrey T. Arnold (3)
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—
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—
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—
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—
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—
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Scott V. Booth (1)
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$
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48,944
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$
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4,200
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—
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—
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$
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53,144
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Theodore P. Botts
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$
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48,944
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$
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4,200
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—
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—
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$
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53,144
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Michael Cascone (1), (3)
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—
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—
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—
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—
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—
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Boland T. Jones (4)
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$
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19,472
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—
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—
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—
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$
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19,472
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Arthur F. Kingsbury
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$
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48,944
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$
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4,200
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—
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—
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$
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53,144
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Kai-Shing Tao
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$
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43,944
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$
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2,310
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—
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—
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$
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46,254
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(1)
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Our shareholders elected Messrs. Booth and Cascone to the Board on December 17, 2009 and elected Mr. Rosenstock on February 2, 2011.
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(2)
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Includes annual retainers for members of the Board of Directors, retainers for the chairman of each of the Audit, Compensation and Nominating Committees, and retainers for the members of the Special Committee established to review the Sharecare transactions.
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(3)
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Bruce L. Campbell, Michael Cascone, and Jeffrey T. Arnold received no compensation as directors because they are employed by Discovery, which owns approximately 43% of our shares. Mr. Arnold received all of his compensation pursuant to his Consulting Agreement, described below.
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(4)
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Mr. Jones did not stand for reelection at our 2010 annual meeting and ceased to be a director on June 15, 2010.
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Annual minimum cash retainer
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$
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5,000
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Annual restricted stock grant value
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$
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35,000
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Total annual compensation
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$
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40,000
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•
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Cash retainers are paid quarterly in arrears.
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•
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Restricted stock is granted at the beginning of the year in an amount then equal to the specified cash value determined as the average of the first 15 trading days of the year, resulting in a per share value for our 2009 grant of $3.50.
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•
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The number of restricted stock shares granted is calculated by dividing $35,000 by the volume weighted average trading price of the Company’s common stock for the first fifteen trading days of 2009 (the “Per-Share Price”). If the resulting quotient exceeds 2,000 shares, the value (calculated using the Per-Share Price) of the shares in excess shall be added to the annual cash retainer.
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•
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Restricted stock vests in full on December 31 of the year of grant, contingent upon the recipient having attended at least 75% of board meetings held during the year; otherwise, vesting will be prorated based on attendance.
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Each person or entity known to own beneficially more than 5% of the outstanding common stock;
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Each director;
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Each of the executive officers named in the Summary Compensation table; and,
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All current executive officers and directors as a group.
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Name of Beneficial Owners
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Number of Shares
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Percentage of
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Beneficially Owned
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Ownership
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Discovery Communications, Inc. (1)
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2,354,072 | 43.3 | % | |||||
One Discovery Place
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Silver Spring, Maryland 20814
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Jeffrey T. Arnold(2)
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356,000 | 6.2 | % | |||||
3280 Peachtree Road Suite 600
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Atlanta, GA 30305
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Eastern Advisors Capital Group, Ltd. (3)
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821,540 | 15.3 | % | |||||
c/o Caledonian Fund Services (Cayman) Limited
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Caledonian House
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69 Dr. Roy’s Drive
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Grand Cayman KY1 – 1102
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Cayman Islands
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Capital Research Global Investors (4)
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368,638 | 6.8 | % | |||||
333 South Hope Street
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Los Angeles, California 90071
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Name of Beneficial Owners
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Number of Shares
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Percentage of
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Beneficially Owned
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Ownership
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Executive Officers and Current Directors:
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Scott V. Booth (5)
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873,625 | 16.1 | % | |||||
Theodore P. Botts (6)
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18,827 | * | ||||||
Arthur F. Kingsbury(7)
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8,827 | * | ||||||
Shawn G. Meredith (8)
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20,851 | * | ||||||
Eric J. Orme (9)
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23,738 | * | ||||||
James A. Rosenstock III
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—
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* | ||||||
Gregory M. Swayne (10)
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60,120 | 1.1 | % | |||||
Kai-Shing Tao(11)
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7,069 | * | ||||||
All Executive Officers and Directors as a Group (8 People)
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1,013,057 | 18.4 | % |
(1)
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Includes 2,344,072 shares of our common stock and 10,000 exercisable warrants beneficially owned by HowStuffWorks, Inc.
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(2)
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Includes 355,000 shares of our common stock that may be acquired upon the exercise of options and 1,000 shares owned directly by Mr. Arnold. Does not include 2,344,072 shares of our common stock and 10,000 exercisable warrants beneficially owned by HowStuffWorks, Inc., over which Mr. Arnold could be deemed to have voting and dispositive power in his capacity as Chief of Global Digital Strategy of HowStuffWorks’ parent company Discovery Communications, Inc.
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(3)
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Based on information contained in Schedule 13G/A filed with the SEC on February 16, 2010, by Eastern Advisors Capital Group, LLC, Eastern Advisors Capital, Ltd. and Scott Booth. All three report shared voting and dispositive power over the shares. The address for Eastern Advisors Capital Group, LLC and Scott Booth is 101 Park Avenue, 48th floor, New York, New York 10178.
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(4)
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Based on information contained in Schedule 13G/A filed with the SEC in February 11, 2011 by Capital Research Global Investors. The address is 333 South Hope Street, Los Angeles, California, 90071.
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(5)
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Includes 821,540 shares of our common stock beneficially owned by Eastern Advisors Capital Group, Ltd., over which Mr. Booth could be deemed to have voting and dispositive power in his capacity as Managing Partner of Eastern Advisors Capital Group. Includes 46,085 shares owned by Mr. Booth. Includes 4,000 shares of restricted stock granted on February 2, 2011 that will fully vest on December 31, 2011, provided Mr. Booth attends at least 75% of the Company’s Board meetings, or if less, on a pro rated basis.
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(6)
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Includes 10,000 shares of our common stock that may be acquired upon the exercise of options. Includes 4,827 shares of our common stock owned by Mr. Botts. Includes 4,000 shares of restricted stock granted on February 2, 2011 that will fully vest on December 31, 2011, provided Mr. Botts attends at least 75% of the Company’s Board meetings, or if less, on a pro rated basis.
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(7)
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Includes 4,827 shares of our common stock owned by Mr. Kingsbury. Includes 4,000 shares of restricted stock granted on February 2, 2011 that will fully vest on December 31, 2011, provided Mr. Kingsbury attends at least 75% of the Company’s Board meetings, or if less, on a pro rated basis.
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(8)
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Includes 15,749 shares of our common stock that may be acquired upon the exercise of options and 5,102 shares owned by Ms. Meredith.
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(9)
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Includes 17,636 shares of our common stock that may be acquired upon the exercise of options and 6,102 shares owned by Mr. Orme.
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(10)
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Includes 49,812 shares of our common stock that may be acquired upon the exercise of options and 10,308 shares owned by Mr. Swayne.
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(11)
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Includes 3,069 shares of our common stock owned by Mr. Tao. Includes 4,000 shares of restricted stock granted on February 2, 2011 that will fully vest on December 31, 2011, provided Mr. Tao attends at least 75% of the Company’s Board meetings, or if less, on a pro rated basis.
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Plan Category
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Number of securities
to be issued
upon exercise of
outstanding options,
warrants and rights
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Weighted-average
exercise price of
outstanding options,
warrants and rights
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Number of securities
remaining available for
future issuance under
equity compensation plans
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Equity compensation plans approved by our shareholders
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971,679
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$
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43.73
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120,318
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Equity compensation plans not approved by our shareholders
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—
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—
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—
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Total
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971,679
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$
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43.73
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120,318
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Exhibit
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Registrant’s
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Exhibit
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Filed
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Number
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Description of Document
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Form
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Dated
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Number
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Herewith
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31.1
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Certification by the Principal Executive Officer pursuant to Section 240.13a-14 or section 240.15d-14 of the Securities and Exchange Act of 1934, as amended
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X
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31.2
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Certification by the Principal Financial and Accounting Officer pursuant to Section 240.13a-14 or section 240.15d-14 of the Securities and Exchange Act of 1934, as amended
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X
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32*
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Certification by the Principal Executive Officer and Certification by the Principal Financial and Accounting Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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X
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HSW INTERNATIONAL, INC.
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By:
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/s/ Gregory M. Swayne
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Gregory M. Swayne
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Chief Executive Officer
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1.
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I have reviewed this Amendment No. 1 to the Annual Report on Form 10-K of HSW International, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report.
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Date: April 1 , 2011
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/s/ Gregory M. Swayne
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Gregory M. Swayne
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Chief Executive Officer
A signed original of this written statement required by Section 302, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 302, has been provided to HSW International and will be retained by HSW International, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
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1.
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I have reviewed this Amendment No. 1 to the Annual Report on Form 10-K of HSW International, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report.
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Date: April 1, 2011
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/s/ Shawn G. Meredith
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Shawn G. Meredith
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Chief Financial Officer
A signed original of this written statement required by Section 302, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 302, has been provided to HSW International and will be retained by HSW International, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
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April 1, 2011
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April 1, 2011
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By:
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/s/ Gregory M. Swayne
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By:
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/s/ Shawn G. Meredith
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Gregory M. Swayne
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Shawn G. Meredith
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Chief Executive Officer
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Chief Financial Officer
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