EZCORP : NOTICE OF RATIFICATION AND ACTION BY WRITTEN CONSENT OF THE STOCKHOLDERS OF EZCORP, INC - Form 8-K
January 31, 2022 at 05:18 pm EST
Share
NOTICE OF RATIFICATION AND
ACTION BY WRITTEN CONSENT OF
THE STOCKHOLDERS OF
EZCORP, INC.
January 31, 2022
Dear Stockholder:
NOTICE IS HEREBY GIVEN pursuant to Section 228(e) of the General Corporation Law of the State of Delaware (the "DGCL") that, in connection with the ratification of certain "defective corporate acts" (as defined in Section 204(h) of the DGCL) identified in the Board Resolutions (as defined below) pursuant to and in accordance with Section 204 of the DGCL (collectively, the "Acts" and the ratification thereof, the "Ratification"), a written consent (the "Stockholder Consent") of the sole holder of the outstanding shares of Class B Voting Common Stock, $0.01 par value per share (the "Class B VotingCommon Stock"), of EZCORP, Inc., a Delaware corporation (the "Company"), representing the requisite vote of the stockholders of the Company to approve the ratification of each of the Acts and matters set forth therein, was executed and delivered to the Company in accordance with the DGCL on January 31, 2022. Upon the execution and delivery of the Stockholder Consent on January 31, 2022, the ratification of the Acts became effective (the "Validation Effective Time"). A copy of the resolutions of the Board of Directors of the Corporation (the "Board") authorizing the Ratification is attached as Exhibit A to this Notice and incorporated herein by reference (the "Board Resolutions"). Pursuant to the Stockholder Consent, the holder of all of the outstanding shares of Class B Voting Common Stock also expressly approved and ratified the Plan Amendment (as defined in the Board Resolutions) and ratified the Board's approval of the Ratification in all respects.
This Notice is being given on January 31, 2022 to the persons, other than the holder of all of the outstanding shares of Class B Voting Common Stock who executed and delivered the Stockholder Consent, who were the holders of record of the issued and outstanding shares capital stock of the Company as of the close of business on January 31, 2022, being the date that the Board Resolutions were adopted and the Stockholder Consent was delivered to the Company. This Notice is also being given to each holder of valid and putative stock entitled thereto, whether voting or nonvoting, as of January 31, 2022, and as of the date of each of the Acts, other than those persons who executed and delivered the Stockholder Consent or who otherwise consented to or waived notice of the Ratification in writing.
This Notice shall constitute the notice of stockholder action without a meeting required by Section 228(e) of the DGCL and shall also constitute any notice required under Section 204 of the DGCL. Additionally, under Section 204 of the DGCL, any claim that the any of the Acts or putative stock referenced in the Board Resolutions ratified under Section 204 of the DGCL is void or voidable due to the failure(s) of authorization set forth therein, or that the Delaware Court of Chancery should declare in its discretion that the ratification thereof in accordance with Section 204 of the DGCL not be effective or be effective only on certain conditions, must be brought within the later of 120 days from the Validation Effective Time or the time at which this Notice is given.
EZCORP, INC.
By: /s/ THOMAS H.WELCH,JR.
Thomas H. Welch, Jr.
Chief Legal Officer and Secretary
EXHIBIT A
Board Resolutions
EZCORP, INC.
UNANIMOUSWRITTENCONSENTOFTHEBOARDOFDIRECTORS
January 31, 2022
Each of the undersigned, collectively constituting all of the members of the Board of Directors of
EZCORP, Inc., a Delaware corporation (the "Company"), pursuant to Section 141(f) of the General Corporation Law of the State of Delaware (the "DGCL"), DOES HEREBY CONSENT to the adoption of, and DOES HEREBY ADOPT, the following resolutions:
WHEREAS, pursuant to the Amended and Restated EZCORP, Inc. 2010 Long-Term Incentive Plan, effective November 28, 2018 (the "Plan"), the Company is authorized to grant and issue Awards consisting of Stock Options, Stock Appreciation Rights, Stock Bonuses, Restricted Stock, Restricted Stock Units or Performance Shares (as such terms are defined in the Plan, and capitalized terms used and not defined herein have the meaning set forth in the Plan) in respect of the shares of the Company's Class A Non-Voting Common Stock, $0.01 par value per share (the "Class A Non-Voting Common Stock");
WHEREAS, although Section 1.2 of the Plan provided that no Award shall be granted under the Plan after May 1, 2020, since May 1, 2020, the Company has granted the Awards listed on Schedule 1 attached hereto (the "Award Grants"), with each such grant being approved by the People and Compensation Committee of the Company's Board of Directors (the "Board") prior to grant and otherwise purportedly made under the Plan;
WHEREAS, in consultation with counsel, the Board has determined that:
(a)Each of the Award Grants may constitute a "defective corporate act" (as such term is defined in Section 204(h) of the DGCL as a result of the failure of the Award Grants to have been authorized and effected in accordance with the terms of the Plan prior to May 1, 2020;
(b)Each share of Class A Non-Voting Common Stock issued pursuant to the Award Grants (as shown on Schedule 1) (collectively, the "Issuances") may constitute a share of "putative stock" (as such term is defined in Section 204(h) of the DGCL); and
(c)The amendment of of the Plan, effective as of April 30, 2020, (1) to replace the phrase "the tenth anniversary of the Effective Date" in Section 1.2 with "December 31, 2021" and (2) to increase the number of Authorized Shares specified in Section 3.1 to such number as is sufficient to cover the Award Grants (the "Plan Amendment") in order to allow for the making of the Award Grants under the Plan may constitute a "defective corporate act" (as such term is defined in Section 204(h) of the DGCL) as a result of the failure of the Plan Amendment to have been authorized and effected in accordance with the terms of the Plan prior to May 1, 2020; and
WHEREAS, the Board has determined that it is advisable and in the best interests of the Company and its stockholders to ratify the Award Grants, the Issuances and the Plan Amendment pursuant to and in accordance with Section 204 of the DGCL.
NOW, THEREFORE, BE IT RESOLVED, that the Award Grants, the Issuances and the Plan
Amendment are the defective corporate acts to be ratified hereby;
RESOLVED, FURTHER, that the date of: (i) each Award Grant is the date of grant set forth on
Schedule 1 with respect to such Award Grant (and Schedule 1 is expressly incorporated herein by
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reference); (ii) each Issuance is the date of issuance set forth on Schedule 1 with respect to such
Issuance and (iii) the Plan Amendment was April 30, 2020;
RESOLVED, FURTHER, that the Award Grants and the Issuances have resulted in the issuance of a total of 155,491 shares of Class A Non-Voting Common Stock on the dates, and in the amounts, set forth on Schedule 1 and all such shares of Class A Non-Voting Common Stock constitute shares of putative stock;
RESOLVED, FURTHER, that the nature of the "failure of authorization" (as defined in Section 204(h) of the DGCL) in respect of: (i) each of the Award Grants and each of the Issuances is the failure of the applicable Award Grant to have been authorized and effected in accordance with the terms of the Plan and (ii) the Plan Amendment is the failure of the Plan Amendment to have to have been approved by the Board and voting stockholders of the Company and authorized and effected in accordance with the terms of the Plan;
RESOLVED FURTHER, that pursuant to and in accordance with Section 204 of the DGCL, the ratification of each of the Award Grants, the Issuances and the Plan Amendment be, and hereby is, approved, adopted and confirmed in all respects;
RESOLVED, FURTHER, that the ratification of the Award Grants, the Issuances and the Plan
Amendment be, and hereby is, submitted to holder of the outstanding shares of the Company's Class B Voting Common Stock, $0.01 par value per share (the "Class B Voting Common Stock"), entitled to vote thereon (the "Voting Stockholder") for approval and adoption thereby;
RESOLVED, FURTHER, that the Board hereby recommends that the Voting Stockholder approve and adopt the ratification of the Award Grants, the Issuances and the Plan Amendment;
RESOLVED, FURTHER, that the "validation effective time" (as defined in Section 204(h) of the DGCL) in respect of the ratification of the Award Grants, the Issuances and the Plan Amendment shall be the time and date on which the Voting Stockholder approves such ratification;
RESOLVED, FURTHER, that the Plan Amendment be, and hereby is, approved, adopted, ratified and confirmed by the Board in all respects;
RESOLVED, FURTHER, that, subject to the approval of the ratification of the defective corporate acts set forth herein by the Voting Stockholder, each of the Awards granted pursuant to the Award Grants be, and hereby is, ratified on the terms that such Award was originally granted, and each such Award shall be deemed to have been granted under the Plan notwithstanding the provisions of the Plan that may have been in effect without giving effect to the Plan Amendment;
RESOLVED, FURTHER, that, subject to the approval of the ratification of the defective corporate acts set forth herein by the Voting Stockholder, the officers of the Company be, and each of them hereby is, authorized, empowered and directed, for and on behalf of the Company, to deliver a notice of the ratification of the defective corporate acts set forth herein in the form and containing the information required by Sections 204 and 228 of the DGCL;
RESOLVED, FURTHER, that, any time before the relevant validation effective time in respect of the ratification of any of the defective corporate acts identified herein, the Board may abandon the ratification of such act or acts before or after approval thereof by the holder of the outstanding shares of Class B Voting Common Stock without further action by the stockholders of the Company; and RESOLVED, FURTHER, that the officers of the Company be, and each of them hereby is, authorized, empowered and directed, for and on behalf of the Company, to take any and all actions, to negotiate for and enter into agreements and amendments to agreements, to perform all such acts and things, to execute, file, deliver or record in the name and on behalf of the Company, all such certificates,
RLF1 26766103v.3
instruments, agreements or other documents, and to make all such payments as they, in their judgment, or in the judgment of any one or more of them, may deem necessary, advisable or appropriate in order to carry out the purpose and intent of, or consummate the transactions contemplated by the foregoing resolutions and/or all of the transactions contemplated therein or thereby, the authorization therefor to be conclusively evidenced by the taking of such action or the execution and delivery of such certificates, instruments, agreements or documents.
The Secretary of the Company is hereby directed to file a signed copy of this Consent in the minute book of the Company.
IN WITNESS WHEREOF, the undersigned, being all the directors of the Company, have executed this Consent on the date set forth below such stockholder's name, to be effective as of the date first written above.
Date:
January 31, 2022
/s/ MATTHEW W.APPEL
Matthew W. Appel
Date:
January 31, 2022
/s/ ZENA SRIVATSA ARNOLD
Zena Srivatsa Arnold
Date:
January 31, 2022
/s/ PHILLIP E.COHEN
Phillip E. Cohen
Date:
January 31, 2022
/s/ JASON A.KULAS
Jason A. Kulas
Date:
January 31, 2022
/s/ PABLO LAGOS ESPINOSA
Pablo Lagos Espinosa
Date:
January 31, 2022
/s/ GARY L.TILLETT
Gary L Tillett
RLF1 26766103v.3
SCHEDULE 1
AWARD GRANTS SINCE MAY 1, 2020
Name of Recipient
Grant Date
Plan Year
Units Awarded
Vesting Date
Shares Issued
Date of Issuance
Hugo Dooner
18-May-20
Director (2020)
12,346
30-Sep-20
12,346
2-Oct-20
Matt Appel
22-Dec-20
Director (2021)
15,905
31-Mar-21
15,905
1-Apr-21
Zena Srivatsa Arnold
22-Dec-20
Director (2021)
15,905
31-Mar-21
15,905
1-Apr-21
Shelaghmichael Brown
22-Dec-20
Director (2021)
15,905
18-Feb-21
15,905
6-Mar-21
Hugo Dooner
22-Dec-20
Director (2021)
15,905
18-Feb-21
15,905
6-Mar-21
Pablo Lagos Espinosa
22-Dec-20
Director (2021)
15,905
31-Mar-21
15,905
1-Apr-21
Kent Stone
22-Dec-20
Director (2021)
15,905
18-Feb-21
15,905
6-Mar-21
Gary Tillett
22-Dec-20
Director (2021)
15,905
31-Mar-21
15,905
1-Apr-21
Robert W.K. Webb
22-Dec-20
Director (2021)
15,905
18-Feb-21
15,905
6-Mar-21
Rosa Zeegers
22-Dec-20
Director (2021)
15,905
18-Feb-21
15,905
6-Mar-21
Cesar Bertran
19-Jan-21
FY20
10,964
30-Sep-22
Ellen Bryant
19-Jan-21
FY20
25,599
30-Sep-22
Lachie Given
19-Jan-21
FY20
74,303
30-Sep-22
Timothy Jugmans
19-Jan-21
FY20
17,706
30-Sep-22
Jason Kulas
19-Jan-21
FY20
129,517
30-Sep-22
Francisco Kuthy
19-Jan-21
FY20
61,919
30-Sep-22
Caleb Magee
19-Jan-21
FY20
16,640
30-Sep-22
Norma Morales
19-Jan-21
FY20
10,990
30-Sep-22
Miguel Murguia
19-Jan-21
FY20
9,929
30-Sep-22
Blair Powell
19-Jan-21
FY20
34,674
30-Sep-22
Keith Robertson
19-Jan-21
FY20
41,486
30-Sep-22
Sunil Sajnini
19-Jan-21
FY20
19,249
30-Sep-22
Nicole Swies
19-Jan-21
FY20
19,349
30-Sep-22
Juan Pablo Vergara
19-Jan-21
FY20
10,061
30-Sep-22
Damon Vigiolto
19-Jan-21
FY20
21,284
30-Sep-22
Jason Watson
19-Jan-21
FY20
12,411
30-Sep-22
Thomas Welch
19-Jan-21
FY20
50,773
30-Sep-22
Matt Appel
18-Feb-21
Director (2022)
31,936
31-Mar-22
Zena Srivatsa Arnold
18-Feb-21
Director (2022)
31,936
31-Mar-22
Pablo Lagos Espinosa
18-Feb-21
Director (2022)
31,936
31-Mar-22
Gary Tillett
18-Feb-21
Director (2022)
31,936
31-Mar-22
Susan Baker
22-Feb-21
FY21
8,600
30-Sep-23
Cesar Bertran
22-Feb-21
FY21
12,374
30-Sep-23
Ellen Bryant
22-Feb-21
FY21
34,791
30-Sep-23
Anne Casey
22-Feb-21
FY21
3,180
30-Sep-23
Nicholas Cohen
22-Feb-21
FY21
5,964
30-Sep-23
Stephen Cox
22-Feb-21
FY21
3,419
30-Sep-23
Michael Croney
22-Feb-21
FY21
8,548
30-Sep-23
Alicia Dombrowski
22-Feb-21
FY21
2,803
30-Sep-23
Lester Durham
22-Feb-21
FY21
2,985
30-Sep-23
Manuel Ferreira
22-Feb-21
FY21
2,140
30-Sep-23
Miguel Garcia
22-Feb-21
FY21
3,514
30-Sep-23
Lachie Given
22-Feb-21
FY21
119,284
30-Sep-23
Issac Gonzalez
22-Feb-21
FY21
14,351
30-Sep-23
Neelima Gullapalli
22-Feb-21
FY21
10,622
30-Sep-23
Brenda Harlicker
22-Feb-21
FY21
2,994
30-Sep-23
Lucy Hernandez
22-Feb-21
FY21
8,766
30-Sep-23
Robert Hicks
22-Feb-21
FY21
12,425
30-Sep-23
Jerry Jory
22-Feb-21
FY21
15,904
30-Sep-23
Timothy Jugmans
22-Feb-21
FY21
58,846
30-Sep-23
Jason Kulas
22-Feb-21
FY21
253,479
30-Sep-23
Francisco Kuthy
22-Feb-21
FY21
79,522
30-Sep-23
Sergio Louro
22-Feb-21
FY21
8,976
30-Sep-23
Adam Matthews
22-Feb-21
FY21
4,476
30-Sep-23
Danelle Miller
22-Feb-21
FY21
3,194
30-Sep-23
Norma Morales
22-Feb-21
FY21
11,292
30-Sep-23
Miguel Murguia
22-Feb-21
FY21
8,404
30-Sep-23
Deborah Myers
22-Feb-21
FY21
9,194
30-Sep-23
Blair Powell
22-Feb-21
FY21
59,642
30-Sep-23
Douglas Reese
22-Feb-21
FY21
5,816
30-Sep-23
Keith Robertson
22-Feb-21
FY21
53,280
30-Sep-23
Sunil Sajnini
22-Feb-21
FY21
55,666
30-Sep-23
Laura Shuford
22-Feb-21
FY21
10,622
30-Sep-23
Brian Smith
22-Feb-21
FY21
3,677
30-Sep-23
Gerhard Stendara
22-Feb-21
FY21
21,868
30-Sep-23
Nicole Swies
22-Feb-21
FY21
58,846
30-Sep-23
Sean Taylor
22-Feb-21
FY21
5,666
30-Sep-23
Mike Teeple
22-Feb-21
FY21
17,097
30-Sep-23
Michael Thompson
22-Feb-21
FY21
7,952
30-Sep-23
Lisa VanRoekel
22-Feb-21
FY21
55,666
30-Sep-23
Juan Pablo Vergara
22-Feb-21
FY21
8,141
30-Sep-23
Damon Vigiolto
22-Feb-21
FY21
27,335
30-Sep-23
Jason Watson
22-Feb-21
FY21
10,685
30-Sep-23
Thomas Welch
22-Feb-21
FY21
65,208
30-Sep-23
Jorge Alvarez
3-Aug-21
FY21
3,656
30-Sep-23
Hemal Sura
3-Aug-21
FY21
1,066
30-Sep-23
Blair Powell
13-Oct-21
Special
29,722
30-Sep-22
Lachie Given
13-Oct-21
FY22
79,260
30-Sep-24
Timothy Jugmans
13-Oct-21
FY22
55,482
30-Sep-24
Jason Kulas
13-Oct-21
FY22
280,713
30-Sep-24
Francisco Kuthy
13-Oct-21
FY22
39,630
30-Sep-24
Blair Powell
13-Oct-21
FY22
59,445
30-Sep-24
Keith Robertson
13-Oct-21
FY22
35,402
30-Sep-24
Sunil Sajnini
13-Oct-21
FY22
36,988
30-Sep-24
Nicole Swies
13-Oct-21
FY22
44,940
30-Sep-24
Lisa VanRoekel
13-Oct-21
FY22
36,988
30-Sep-24
Thomas Welch
13-Oct-21
FY22
43,328
30-Sep-24
Jorge Alvarez
16-Nov-21
FY22
6,525
30-Sep-24
Susan Baker
16-Nov-21
FY22
5,719
30-Sep-24
Cesar Bertran
16-Nov-21
FY22
8,454
30-Sep-24
Ellen Bryant
16-Nov-21
FY22
24,438
30-Sep-24
Anne Casey
16-Nov-21
FY22
2,179
30-Sep-24
Nicholas Cohen
16-Nov-21
FY22
5,442
30-Sep-24
Stephen Cox
16-Nov-21
FY22
6,605
30-Sep-24
Michael Croney
16-Nov-21
FY22
7,133
30-Sep-24
Alicia Dombrowski
16-Nov-21
FY22
1,928
30-Sep-24
Lester Durham
16-Nov-21
FY22
3,302
30-Sep-24
Manuel Ferreira
16-Nov-21
FY22
1,836
30-Sep-24
Miguel Garcia
16-Nov-21
FY22
2,417
30-Sep-24
Arturo Gonzalez
16-Nov-21
FY22
3,857
30-Sep-24
Issac Gonzalez
16-Nov-21
FY22
9,643
30-Sep-24
Neelima Gullapalli
16-Nov-21
FY22
7,318
30-Sep-24
Belinda Harlicker
16-Nov-21
FY22
2,060
30-Sep-24
Lucy Hernandez
16-Nov-21
FY22
6,420
30-Sep-24
Robert Hicks
16-Nov-21
FY22
9,907
30-Sep-24
Jerry Jory
16-Nov-21
FY22
10,885
30-Sep-24
Michael Keim
16-Nov-21
FY22
1,770
30-Sep-24
Sharon Knitter
16-Nov-21
FY22
13,870
30-Sep-24
Sergio Louro
16-Nov-21
FY22
9,247
30-Sep-24
Adam Matthews
16-Nov-21
FY22
3,302
30-Sep-24
Danelle Miller
16-Nov-21
FY22
5,614
30-Sep-24
Norma Morales
16-Nov-21
FY22
7,291
30-Sep-24
Miguel Murguia
16-Nov-21
FY22
5,746
30-Sep-24
Deborah Myers
16-Nov-21
FY22
7,529
30-Sep-24
Douglas Reese
16-Nov-21
FY22
6,605
30-Sep-24
Laura Shuford
16-Nov-21
FY22
7,278
30-Sep-24
Brian Smith
16-Nov-21
FY22
2,443
30-Sep-24
Gerhard Stendara
16-Nov-21
FY22
14,531
30-Sep-24
Hemal Sura
16-Nov-21
FY22
2,972
30-Sep-24
Sean Taylor
16-Nov-21
FY22
3,764
30-Sep-24
Mike Teeple
16-Nov-21
FY22
11,704
30-Sep-24
Michael Thompson
16-Nov-21
FY22
5,442
30-Sep-24
Luis David Valdez
16-Nov-21
FY22
700
30-Sep-24
Juan Pablo Vergara
16-Nov-21
FY22
5,799
30-Sep-24
Damon Vigiolto
16-Nov-21
FY22
19,550
30-Sep-24
Jason Watson
16-Nov-21
FY22
7,926
30-Sep-24
Totals
3,043,074
155,491
Forfeited after grant
(680,349)
2,362,725
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EZCORP Inc. published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 22:17:11 UTC.
EZCORP, Inc. is a provider of pawn transactions in the United States and Latin America. The Company also sells merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled merchandise purchased from customers. It operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The U.S. Pawn segment includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States. The Latin America Pawn segment includes its Empeno Facil, Cash Apoyo Efectivo (CAE) and other branded pawn operations in Mexico, as well as its GuatePrenda and MaxiEfectivo pawn operations in Guatemala, El Salvador, and Honduras (GPMX). At its pawn stores, it advances cash against the value of collateralized tangible personal property and sells merchandise to customers looking for good value. The merchandise it sells primarily consists of second-hand collateral forfeited from its pawn activities or merchandise purchased from customers.